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Industrial and Commercial Bank of China’s 2010 Business Overview
In 2010, Industrial and Commercial Bank of China Co., Ltd. (hereinafter referred to as “ICBC”) faced complex In the changing external environment, we proactively adapt to the requirements of global financial regulatory changes, integrate into the overall situation of China's economic transformation and development, put a more prominent position in accelerating the transformation of development methods, unswervingly adjust the structure, promote transformation in a down-to-earth manner, and consolidate the world's largest market capitalization, customer As the largest listed bank in terms of deposits and profits, it has a high-quality customer base, diversified business structure, strong innovation capabilities and market competitiveness.
[Business Overview]
As of the end of the year, ICBC had 397,339 employees, with 16,227 domestic institutions, 203 overseas institutions and more than 1,562 branches around the world. Agent banks and distribution channels such as online banking, telephone banking and self-service banking provide a wide range of financial products and services to 4.12 million corporate customers and 259 million individual customers, basically forming a cross-market and international operation with commercial banks as the main body. structure and maintain its leading position in the domestic market in the field of commercial banking business.
At the end of 2010, total assets reached 13.458622 billion yuan, an increase of 1.673569 billion yuan, an increase of 1.42% over the end of the previous year; total liabilities reached 12.636965 billion yuan, an increase of 1.530846 billion yuan over the end of the previous year. , an increase of 13.8%; the total market value reached US$233.5 billion, ranking first among the world's listed banks. In 2010, it achieved net profit of 166.025 billion yuan, an increase of 28.4% over the previous year, and the growth rate accelerated by 12.0 percentage points year-on-year. It continues to be the most profitable bank in the world; the average return on total assets and the weighted average return on equity were 1.32 and 22.79 respectively. , leading the global banking industry; earnings per share were 0.48 yuan, an increase of 0.10 yuan over the previous year; the balance of non-performing loans and the non-performing loan ratio have both declined for 11 consecutive years, with the non-performing loan ratio falling to 1.08. Benefiting from the optimization of the operating structure, the completion of refinancing and the appropriate expansion of the profit retention ratio, the capital adequacy ratio and core capital adequacy ratio reached 12.27 and 9.97 respectively, and the capital strength and sustainable development capabilities were further enhanced.
[Corporate Financial Business]
In 2010, ICBC actively responded to changes in the macro environment, accelerated the adjustment of its operating structure, and promoted the transformation of its corporate financial business. Rationally allocate credit resources, promote credit structure adjustment, and maintain market leadership. Strengthen the interaction between commercial banks and investment banks, develop investment and financing consulting, debt financing instrument underwriting, and syndicated loan businesses to meet customers' diversified financing needs. Accelerate the development of cash management, asset custody, pensions, corporate financial management and other businesses, and optimize the company's financial business structure. Support Chinese-funded enterprises’ “going global” projects, expand overseas business markets, accelerate the development of cross-border RMB business, and enhance global service capabilities. Promote the reform of the hierarchical marketing system, build a differentiated customer service system, and improve the level of high-quality customer service. Won the title of “Best Corporate Bank in China” by the Financial Times. At the end of 2010, there were 4.12 million corporate customers, an increase of 510,000 over the end of the previous year; there were 102,000 corporate customers with financing balances, an increase of 18,000.
In terms of corporate deposits, loans and deposits. In line with the national macro-control policies, we grasped the total amount, rhythm and direction of credit, optimized the credit structure, and achieved stable and healthy development of credit business. At the end of the year, the balance of domestic corporate loans was 4.700343 billion yuan, an increase of 742.557 billion yuan over the end of the previous year. 18.8. Utilizing the advantages of the institutional network, we strengthened marketing to industrial chain customer clusters and urban area customer groups to attract and gather customer funds. At the end of the year, the balance of domestic corporate deposits was 5.471309 billion yuan, an increase of 682.819 billion yuan or 1.43% over the end of the previous year.
According to data from the People's Bank of China, at the end of 2010, ICBC's corporate loans and corporate deposit balances ranked first among peers, with market shares of 12.2 and 12.8 respectively.
SME business. Improve the level of financial services for small and medium-sized enterprises, continuously improve the product system, and expand the coverage of specialized institutions. A total of more than 1,200 specialized institutions for small enterprises have been established to improve the level of professional services. It was awarded the title of “Excellent Small and Medium Enterprise Service Organization” by the China Association of Small and Medium Enterprises, and was awarded the “Top Ten Commercial Banks in Supporting the Development of Small and Medium-sized Enterprises in the Country” by the Organizing Committee of the China Small and Medium Entrepreneurs Annual Conference. At the end of 2010, there were 63,081 small business customers with financing balances, an increase of 18,838 from the end of the previous year.
Institutional financial business. Cooperating with a number of securities companies to launch new products such as third-party custody account opening appointments, the business has maintained rapid growth, ranking first in the industry in terms of number of customers and amount of funds. Promote the bank-to-bank platform business and extend cooperation with other industries. The number of domestic agency banks has increased to 109. Deepen bancassurance business cooperation, increase agency insurance business volume, and promote cooperation in multiple business areas such as asset custody, cash management, and bank cards. The Company will consolidate its cooperative relationships with government agency customers and maintain its leading position in the industry in agency fiscal collection and payment business and the issuance of official cards for budget units.
Settlement and cash management business. Promote settlement points and settlement package services, enhance the brand awareness of "Caizhi Account", seize development opportunities in the third-party payment market, and actively market non-financial institution payment agency business. At the end of 2010, there were 5.05 million corporate settlement accounts, an increase of 650,000 from the end of the previous year. The corporate RMB settlement volume for the whole year was 870 trillion yuan, an increase of 30.2% from the previous year, and continued to lead the industry. Relying on the functions of the global cash management system to consolidate its leading advantages in the industry, it was awarded the title of "Best Cash Management Bank in China" by "The Asset" and "Financial Asia" for the fourth consecutive year, and won the first "China Cash Management Bank" by "The Asian Banker" Achievement Award". At the end of 2010, the number of cash management customers was 508,000, an increase of 77.0% from the end of the previous year.
Investment banking business. Accelerate the adjustment of investment banking product structure and promote the rapid development of investment banking business. Innovatively launch equity investment funds to manage banking business and expand corporate equity financing channels. The Company expanded its bond underwriting business and oversaw the underwriting of various non-financial corporate debt financing instruments amounting to RMB207 billion throughout the year, ranking first in the domestic market. The brand influence of the investment banking business continued to increase, and it was awarded the title of "Best Bank Investment Bank" by the Securities Times. In 2010, investment banking business revenue was 15.506 billion yuan, an increase of 23.7% over the previous year.
International settlement and trade finance business. A total of 53 domestic and foreign institutions have completed the centralized document business, and newly established document sub-centers in Hefei and Chengdu have improved the ability to intensively operate document and trade finance businesses. The development of cross-border RMB business has been accelerated. Overseas institutions and agency banks that have opened domestic RMB clearing accounts with the Bank have covered 31 countries and regions, and a global RMB interbank clearing network has been initially formed. In 2010, domestic branches issued a total of 974.7 billion yuan in trade financing, an increase of 43.4% over the previous year, of which domestic trade financing amounted to 624.4 billion yuan, an increase of 66.8%. Domestic branches handled a total of US$782.7 billion in international settlements, an increase of 43.4%, further increasing their market share.
Asset custody business. The scale of insurance assets under custody is nearly one trillion yuan, and its market share has increased to 39%. The global custody business has developed steadily, ranking first among Chinese banks in the number of QFII customers under custody, and maintaining the market leadership in the scale of QDII assets under custody. Launch the "Safe Account" fund custody business, promote bank wealth management products, securities company customer asset management plans and equity investment fund custody and other emerging custody businesses, and optimize the custody business structure. It has been awarded the Best Custodian Bank in China by well-known financial media such as Global Custodian, Global Finance and The Asset. At the end of 2010, the total net value of assets under custody was 2.8757 billion yuan, an increase of 59.2% over the end of the previous year.
Pension business. Give full play to comprehensive competitive advantages and increase market expansion efforts. Launched the "Ruyi Pension No. 3" enterprise annuity plan product to enrich the business and product system and expand brand influence. Put into operation a comprehensive pension management system to improve pension service and business management levels.
At the end of 2010, *** provided pension management services to 22,790 companies, 4,470 more than the end of the previous year; it managed 42.7 billion yuan in pension funds, managed 9.12 million personal pension accounts, and managed 1 pension fund. 48.7 billion yuan.
Precious metal business. It has formed four major product series: physical products, trading products, financing products and financial management products, launched a variety of branded precious metal products, promoted branded gold accumulation business, launched account silver products and acted as an agent for the silver deferred settlement business of the Shanghai Gold Exchange. Carry out gold leasing and gold pledge financing business, and launch the first financial product linked to physical precious metals - "Ruyi Gold" compound financial product. In 2010, the precious metal business transaction volume was 24,400 tons, an increase of 23.6 times over the previous year. The clearing volume on behalf of the Shanghai Gold Exchange was RMB 128.8 billion, continuing to lead the industry.
Corporate financial management business. We launched segmented interest-bearing wealth management products with increasing returns and redeemable fixed-income wealth management products, and expanded capital market investment products such as stock income rights wealth management products and structured securities investment wealth management products to increase the income level of wealth management products. Launched the "Ruyi Life" series of pension financial products to extend the functions of financial products. Won the title of "Best Asset Management Team" by "21st Century Business Herald". In 2010, the cumulative sales of corporate wealth management products were 2.1655 billion yuan, an increase of 20.6% over the previous year.
[Personal Financial Business]
In 2010, ICBC accelerated the transformation of its personal financial business operation and management system, promoted the implementation of the "Strong Personal Finance" strategy, and built China's No. 1 retail bank. Actively develop new markets represented by commodity trading markets and expand personal financial business areas. We will build new marketing platforms such as the ICBC Merchant Friends Club, innovate customer expansion methods, and explore new customer relationship models. Promote the positive interactive development of savings deposits and financial management business, consolidate the market position of savings deposits and financial management business, and expand the total financial assets of individual customers. Relying on its own financial resource advantages, it will accelerate the development of bank card and private banking businesses. Accelerate the application of individual customer star rating service system, expand high-quality customers, and improve customer service levels. Won the title of "Best Retail Bank in China" by The Asian Banker. At the end of 2010, there were 259 million personal customers, including 6.85 million personal loan customers. According to data from the People's Bank of China, at the end of 2010, both savings deposits and personal loan balances ranked first among peers, with market shares of 17.1 and 14.5 respectively.
Savings deposits. Using new platforms such as ICBC Merchant Club and Celebrity Financial Management Club as carriers, we will expand new customer groups and broaden deposit funding channels. Strengthen linkage marketing with corporate business, and promote group and batch customer expansion through payroll agency business. At the end of 2010, the balance of domestic savings deposits was 5.243657 billion yuan, an increase of 583.225 billion yuan or 1.25% over the end of the previous year. Among them, current savings deposits increased by 444.477 billion yuan, an increase of 24.6%; time savings deposits increased by 138.748 billion yuan, an increase of 4.9%.
Personal loans. Closely integrate commodity consumption and vigorously develop personal consumption loans. Expand business loans for merchants in resource-rich areas of business clusters and industrial clusters. Actively support county economic development and launch personal small loans. We accelerated product innovation and launched the personal revolving loan "Kadai Tong" and the online financing business "Wang Dai Tong" to enrich the personal credit product system. At the end of 2010, domestic personal loans were RMB 1,633.192 billion, an increase of RMB 426.342 billion or 3.53% over the end of the previous year, of which personal consumption loans increased by RMB 109.930 billion or 6.97%.
Personal financial management business. We accelerated the innovation of banking financial products, and successively launched Mid-Autumn Festival and National Day themed financial products, convertible bond financial products, etc. We vigorously promoted regular payment and protection-type insurance products, and the annual sales of personal insurance products reached 88.5 billion yuan, an increase of 22.2% over the previous year. Sales of open-end funds amounted to RMB 356.1 billion on behalf of the Company, maintaining its leading position in the industry. The agency sold treasury bonds worth RMB 71.5 billion, ranking first among its peers.
In 2010, domestic sales of various personal financial products were 2,373.9 billion yuan, an increase of 55.4% over the previous year, of which sales of personal banking financial products were 1,857.7 billion yuan, an increase of 10.94%.
Private banking business. For high-net-worth customers with personal financial assets of more than 8 million yuan, we provide private banking services covering financial management, asset management, consulting, private value-added, and cross-border finance. Ten private banking branches were established in Beijing, Shanghai, and Guangzhou, forming a business layout covering key domestic economic regions. Won the title of "Best Private Bank in China" by Euromoney and "Outstanding Chinese Private Bank Brand of the Year" by 21st Century Business Herald. At the end of 2010, the number of private banking customers exceeded 18,000, with assets under management of RMB 354.3 billion.
[Bank Card Business]
In 2010, ICBC strengthened market expansion, accelerated bank card product innovation and service level improvement, and further consolidated its leading position in the industry. At the end of 2010, 350 million bank cards were issued, an increase of 65.6 million from the end of the previous year. The annual bank card consumption amount was 2.2395 billion yuan, an increase of 49.5% over the previous year; the bank card business income was 13.687 billion yuan, an increase of 4.55%.
Credit card business. Launch the marketing campaign for star customer credit cards, increase the promotion of high-quality projects such as transportation cards and co-branded cards, and expand the scale of card issuance. The first company in China to launch online card processing business, expand card issuance channels and improve card issuance efficiency. There are 34 new VIP customer service centers, and the Platinum Card hotline and group hotline for telephone service have been put into use, significantly improving service supply capabilities and service levels. Won the Gold Award for Trustworthy Brand in the Credit Card Issuing Bank Category by Reader's Digest in the United States. At the end of 2010, the number of credit cards issued was 63.66 million, an increase of 11.65 million over the end of the previous year; the annual consumption amount was 638.3 billion yuan, an increase of 4.22% over the previous year; the domestic credit card overdraft balance was 91.561 billion yuan, an increase of 54.685 billion yuan. , an increase of 148.3. Credit card issuance volume, consumption amount, and overdraft amount all remain the industry leaders.
Debit card business. Accelerate the innovation of debit card products, launch theme cards such as ICBC Merchant Friends Card, Yang Lan Money Link Card, Yanran Angel Fund Money Link Card and Taobao Money Link Card, as well as telecom co-branded cards, provident gold cards and other co-branded cards, enrich the Money Link product line and expand card issuance quantity. Leveraging its technological leadership in the chip card business, it launched a variety of chip debit cards such as Asian Games Money Link Card and Baby Growth Card to enhance product competitiveness. Carry out a variety of special themes and regional marketing and promotion activities to enhance customers' awareness of card consumption and expand the amount of card consumption. At the end of 2010, the number of debit cards issued was 291 million, an increase of 53.95 million over the end of the previous year; the annual consumption amount was 1.6012 billion yuan, an increase of 5.27%.
[Electronic Banking Business]
Focusing on the bank’s development strategy, we will promote the transformation of electronic banking into a comprehensive business platform integrating transactions, marketing and services. Throughout the year, we launched 49 new products, optimized and improved 155 original product functions, consolidated the core competitiveness of electronic banking, and improved customer service levels. In 2010, the transaction volume of electronic banking increased by 37.2% compared with the previous year, and the number of electronic banking transactions accounted for 59.1% of the total number of transactions in the bank, an increase of 9.0 percentage points from the previous year, and the role of the main transaction channel was further brought into play.
Online banking. Launched corporate online banking for cross-border foreign exchange remittance, personal online banking online financial analysis system, and global account management services covering both corporate and personal online banking customers, enriched the online banking product system, carried out innovation in online banking asset business, launched supply chain finance platform, online banking New features such as loan pass. We accelerated the promotion of overseas online banking and launched online banking services in 15 overseas institutions. At the end of 2010, the number of corporate online banking customers increased by 26.5% compared with the end of the previous year, and the annual transaction volume increased by 46.6%; the number of personal online banking customers increased by 27.7%, and the annual transaction volume increased by 60.1%. Won the "Best Online Banking in China" awards from "The Asian Banker" and "Best Personal Online Banking in China" from "Global Finance".
Telephone banking. The Bank completed the construction of the integrated telephone banking project, improved the operation and management of telephone banking, and realized the flexible allocation of agent resources across the bank.
Launched SMS customer service to effectively divert business volume from telephone banking agents and expand 95588 service channels. The electronic banking center (Hefei) and the electronic banking center (Shijiazhuang) were put into operation, and the service level was further improved. Promote the construction of overseas telephone banking centers and launch telephone banking services at ICBC Canada, ICBC Indonesia and Frankfurt branches.
Mobile banking. Adapting to the development trend of mobile Internet, we accelerated the pace of mobile financial product innovation, launched new functions such as mobile banking wealth management, loans and remittances to overseas VISA cards, and enriched the mobile banking product system. Promote product innovation such as mobile portals and electronic maps, and expand the scope of mobile marketing services. The number of mobile banking customers and transaction volume maintained rapid growth.
Self-service banking. Optimize the location and layout of automatic teller machines, optimize the transaction process of self-service terminals, enrich the business functions of self-service terminals, and improve the efficiency of self-service equipment use. At the end of 2010, there were 11,414 self-service banks, an increase of 30.8% over the end of the previous year; and 42,868 automatic teller machines, an increase of 25.8%. The transaction volume of ATMs was 3.3753 billion yuan, an increase of 64.9%.
[International Operation]
ICBC comprehensively promotes the international operation strategy, achieved new breakthroughs in the international market layout in 2010, seized the favorable opportunities in the post-financial crisis stage, emerging and mature We will simultaneously develop markets and accelerate the pace of application for establishment and mergers and acquisitions of overseas institutions. Hanoi branch, ICBC Malaysia and Abu Dhabi branches were opened one after another; completed the equity acquisition of Bank of East Asia of Canada and ACL Bank of Thailand and changed their names to Industrial and Commercial Bank of China (Canada) Co., Ltd. and Industrial and Commercial Bank of China (Thailand) Co., Ltd. respectively; completed The privatization of ICBC Asia; the acquisition of the securities clearing department of Fortis North America to establish ICBC Financial Services Co., Ltd.; the signing of legal agreements related to the equity purchase and sale transactions of Jinsheng Life Insurance; Paris Branch, Amsterdam Branch, Brussels Branch, Milan Branch, Madrid Branch and Pakistani institutions ( Karachi Branch, Islamabad Branch) application for overseas regulatory approval was successfully completed; the secondary network expansion and localization process in South Korea, Indonesia, West Asia, Hong Kong, Macau and other countries and regions were further accelerated.
As of the end of 2010, ICBC had established 203 overseas institutions in 28 countries and regions, including 21 overseas branches and their branches, and 181 overseas holding companies and their branches; with 132 countries It has established correspondent banking relationships with 1,453 overseas banks in the region. A global financial service network spanning the five continents of Asia, Africa, Europe, the United States, and Australia, with diverse channels, clear levels, reasonable positioning, and efficient operations has been basically established. The total assets of overseas institutions (including overseas branches, overseas subsidiaries and investments in Standard Bank) were US$75.727 billion, an increase of US$23.521 billion over the end of the previous year, an increase of 4.51%; pre-tax profits were US$1.185 billion, an increase of 37.2% over the previous year, including newly established institutions. All overseas operating institutions including the Company achieved profitability.
[Technology Leadership]
ICBC continues to enhance its core competitiveness with advanced information technology. In 2010, 13 scientific and technological achievements were awarded the Annual Bank Science and Technology Development Award by the People's Bank of China, and won the "World Intellectual Property Organization Creative Gold Award (China) - Promotion and Application Award" awarded by the World Intellectual Property Organization and the National Copyright Administration. Continuous innovation of application products accelerates the research and development and optimization of application products, establishes a unified customer service support management system across the bank, and builds a unified customer evaluation system; expands chip card multi-application platforms, launches mobile phone chip card mobile payment services, and promotes expressway express cards Project; fully realize the bank-wide integrated telephone banking system; establish an integrated domestic and foreign currency asset management system architecture with a "full amount concentration, transaction-by-transaction pricing" model; independently develop risk management systems such as advanced operational risk measurement methods and market risk internal model methods. ; Completed the promotion of the comprehensive business processing system for overseas institutions (FOVA) in 25 overseas institutions; cross-border remittance products within the system were launched to the market in July 2010; global personal account management was piloted and promoted at ICBC Macau and Shenzhen branches, and passed Over the counter and electronic banking channels provide customers with services such as global account inquiries, transfers and remittances. In 2010, the bank added 449 new products, bringing the total to 2,815. The total number of products increased by 19% compared with the end of the previous year.
In 2010, it obtained 24 patent authorizations from the State Intellectual Property Office, and the number of patents it owns reached 115.
[Social Responsibility]
ICBC has always adhered to the organic unity of fulfilling economic responsibilities and social responsibilities, and has established a responsible philosophy in supporting economic and social development and providing high-quality financial services. It has set an example and adhered to the business purpose of "customer-centered, service creates value". The brand connotation has been continuously enriched, and it has demonstrated an excellent brand image in the "big test" of major international events such as the World Expo and the Asian Games. In 2010, ICBC implemented ten major service improvement projects. By conducting in-depth "Service Value Year" activities, it paid attention to customer experience and evaluation, continuously accelerated technological innovation, promoted product upgrades, and optimized channel construction and business processes. In the selection of "Top 1,000 Demonstration Units for Civilized and Standardized Services in China's Banking Industry in 2010", 138 business outlets were selected, ranking first in the industry.
ICBC adheres to the responsibility concept of “originating from the society, giving back to the society, and serving the society”, devotes itself wholeheartedly to social welfare undertakings, and continues to increase its investment in charitable donations. In 2010, after the occurrence of natural disasters such as the Yushu earthquake in Qinghai and the mudslide in Zhouqu, Gansu, we responded quickly, provided help in times of need, donated more than 50 million yuan in donations, and opened green channels as soon as possible to provide fast and thoughtful financial services for disaster relief. Credit resources were concentrated to support the reconstruction of the earthquake-stricken areas in Wenchuan, Sichuan, and a total of 48.6 billion yuan in various types of earthquake relief and post-disaster reconstruction loans were issued. We continued to carry out various charity and public welfare activities such as green poverty alleviation, education support, caring for the children of migrant workers, and popularizing financial knowledge, and invested a total of 62.52 million yuan in public welfare undertakings.
[International Honors]
ICBC has won wide recognition from all walks of life at home and abroad for its good operating performance. In 2010, it was awarded the title of "Euromoney", "Global Finance", "Asia Bank" "Home", "Financial Times" and other well-known media and intermediaries at home and abroad have awarded 189 awards to ICBC, including "Best Bank in China", "Best Bank in Asia", "Most Respected Bank in China". International professional brand research institutions have given ICBC high evaluations. Among them, ICBC ranked 11th in the 2010 ranking of the world's top 100 most valuable brands released by Millward Brown Optimor, and continues to top the list in the financial industry; In the 2010 comprehensive ranking of the world's 2,000 largest companies released by Forbes based on four indicators: company sales revenue, profits, assets, and market capitalization, ICBC ranked fifth.