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Bank of Communications

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Bank of Communications Limited
交通银行股份有限公司
Company typePublic
IndustryFinancial services
Founded
  • 1908
  • 1986; 38 years ago (1986) (re-establishment)
HeadquartersShanghai, China
Key people
Niu Ximing, Chairman of the Board
Peng Chun, President
ProductsInsurance
RevenueIncrease CN¥144.08 billion
$20.53 billion (2019)[1]
Increase CN¥88.20 billion
$12.57 billion (2019)[1]
Increase CN¥77.28 billion
$10.78 billion (2019)[1]
Total assetsIncrease CN¥10.670 trillion
$1.52 trillion (2020)[1]
Total equityIncrease CN¥802.54 billion
$114.36 billion (2020)[1]
Owner
Number of employees
87,828 (2019)[3]
ParentCentral Government of China
SubsidiariesBOCOM (Hong Kong)
BOCOM International
BOCOM Insurance
BOCOM Leasing
BOCOM Schroder[4]
Websitebankcomm.com

Bank of Communications Limited (BoComm) (simplified Chinese: 交通银行; traditional Chinese: 交通銀行; pinyin: Jiāotōng Yínháng; often abbreviated as 交行; Jiāoháng), is the fifth-largest bank in mainland China.

Established in 1908, the Bank of Communications claims a long history in China and is one of the banks to have issued banknotes in modern Chinese history. It was listed on the Stock Exchange of Hong Kong in June 2005[5] and the Shanghai Stock Exchange in May 2007.[6] The Bank was ranked No.151 among Fortune Global 500 in terms of operating income by the Fortune and No.11 among the global top 1,000 banks in terms of Tier 1 Capital rated by the London-based magazine The Banker.[7]

History

Before 1949

In 1907, Liang Shiyi proposed the formation of a Bank of Communications to redeem the Beijing–Hankou Railway from its Belgian owners and place the railway under Chinese control.[8] The Bank of Communications was duly formed in 1908 and provided more than half of the financing needed to buy the railway.[9] The successful redemption enhanced the prestige of Liang's Communications Clique.

The bank's name uses the word "communications" to refer to the linking of two points by a means of transportation.[10][11]

In order to expand the business into the overseas area, the Bank opened its first Hong Kong Branch on 27 November 1934.

After 1949

Republic of China

After the Chinese Civil War ended in 1949, the Bank of Communications, like the Bank of China, was effectively split into two operations, part of it relocating to Taiwan with the Kuomintang government. In Taiwan, the bank was also known as the Bank of Communications (Chinese: 交通銀行; Wade–Giles: Chiao-T'ung Yin-hang; Chiao Tung Bank).[12] It eventually merged with the International Commercial Bank of China (中國國際商業銀行), the renamed Bank of China in Taiwan after its 1971 privatization, to become the Mega International Commercial Bank.

People's Republic of China

The mainland operation is the current Bank of Communications. Following the State Council's decision to restructure the Bank in 1986,[13] the Bank was then restructured and re-commenced operations on 1 April 1987.[citation needed] Since then, its Head Office has been located at Shanghai.[13]

Today

Today, the Bank of Communications is amongst the top 5 leading commercial banks in China and has an extensive network of over 2,800 branches covering over 80 major cities. Apart from Hong Kong, the Bank has also established overseas branches in New York, Tokyo, Singapore and representative offices in London and Frankfurt. As of end-2002, the Bank had over 88,000 employees and a total asset reaching RMB 5.15 trillion.

Bank of Communications currently possesses 236 domestic organs including 30 provincial branches, 7 directly managed branches, 199 sub-branches managed by the provincial branches with 3,529 network organs in over 239 large- and medium-sized cities. In addition, it has established 21 overseas organs including branch banks in Hong Kong, New York, San Francisco, Tokyo, Singapore, Seoul, Frankfurt, Macau, Sydney, and Ho Chi Minh City, BOCOMUK in London, and representative office in Taipei.[14] According to the ranking announced by the British journal “The Banker” concerning 1,000 worldwide banks in 2011, Bank of Communications ranked 35th for its tier l capital, entering the world's top 50 banks for two consecutive years. Among the World's Top 500 Enterprises listed by Fortune in 2018, Bank of Communications ranked 168th., up by 3 as compared with 2017 and entering the World's Top 500 Enterprises for ten straight years.[15] Bank of Communications is one of the major financial service suppliers in China with its business scope covering commercial banking, securities, trust, financial leasing, fund management, insurance, offshore financial services, etc.

A sub-branch of the Bank of Communications Hong Kong Branch.

Events in 2005

As of January 2005, 19.9% of the bank is owned by HSBC Holdings plc. An HSBC spokeswoman said HSBC and its affiliate, the Bank of Communications, would seek to acquire a brokerage to expand their operations in China. The plan was part of HSBC's broader China expansion strategy, but "there is nothing further to disclose at the present." HSBC's operations in China include its own banking operations, its stake in BoCom and an 8% stake in the Bank of Shanghai. HSBC also holds a 19.9% shares in Ping An Insurance through its wholly owned subsidiary HSBC Insurance Holdings. The South China Morning Post today[when?] cited Peter Wong Tung-shun, executive director at The Hongkong and Shanghai Banking Corporation, as saying that the acquisition is being considered in the light of the Chinese government's reforms of the country's securities brokerages. This includes a provision allowing foreign companies to get management control of brokerage firms. Wong did not provide a timetable for any acquisition or identify any acquisition target. The Hongkong and Shanghai Banking Corp is a wholly owned HSBC subsidiary.

Events in 2015

July 22, 2015 — Bank of Communications Co. sold $2.45 billion (about 14.93 billion yuan) of Basel III compliant bonds (convertible to preferred stock) “used to replenish the bank’s additional Tier 1 Capital.” The bond is registered on the Hong Kong stock exchange, and pays a coupon of 5 percent a year.

Shareholders

The major shareholders (ordinary shares) as of 31 December 2016[2]
Rank Name Number of shares % Footnotes
1 The Ministry of Finance, excluding subsidiaries 19,702,693,828 26.53 A + H shares, government entity
1.1 Shanghai Haiyan Investment Management 808,145,417 1.09 A shares, state-owned enterprise
1.2 Yunnan Hehe Group 745,305,404 1.00 A shares, state-owned enterprise
2 HSBC (and its subsidiaries) 14,147,386,095 19.05 H shares
3 National Social Security Fund 10,919,909,783 14.70 A + H shares, government entity
4 China Securities Finance 1,698,194,809 2.29 A shares, state-owned enterprise
5 Capital Airport Holding 1,246,591,087 1.68 A shares, state-owned enterprise
6 Wutongshu Investment Platform 794,557,920 1.07 A shares, state-owned enterprise
7 FAW Group 663,941,711 0.89 A shares, state-owned enterprise
Total 50,726,726,054 68.3
  • Note: H shares trustee: HKSCC Nominees Limited was excluded in the table

See also

References

  1. ^ a b c d e "Annual Report 2018". Bank of Communications. Retrieved 2019-05-31.
  2. ^ a b "2016 Annual Report" (PDF). Bank of Communications. 18 April 2017. Retrieved 14 May 2017.
  3. ^ "OCBC Bank Annual Report 2019" (PDF). OCBC Bank. Retrieved 23 Feb 2020.
  4. ^ "Stocks". Bloomberg News.
  5. ^ Bank of Communications to list in HK June 23, China Daily 2005-06-13. Retrieved 2018-06-03
  6. ^ "FACTBOX-China's BoCom enjoys strong Shanghai listing". Reuters. 2007-05-15. Retrieved 2022-08-31.
  7. ^ Bank of Communications 2019 Annual Report
  8. ^ Dayer, Roberta Allbert (1981). Bankers and Diplomats in China, 1917-1925: The Anglo-American Relationship. Abingdon, UK and New York: Frank Cass. p. 22. ISBN 9781135167585. In 1907 Liang Shih-i proposed the establishment of a Bank of Communications which would handle domestic and foreign funds for the redemption of the Peking-Hankow railway.
  9. ^ Lee, En-han (1977). China's Quest for Railway Autonomy, 1904-1911: A Study of the Chinese Railway-rights Recovery Movement. Singapore University Press. p. 223. ... three domestic loans of 5,000,000 taels, 1,000,000 taels, and 7,500,000 taels (CH$10,000,000) each, to be made through the Ministry of Finance, the Imperial Bank of China (ta-ch'ing yin-hang) and the Bank of Communications respectively. The loan provided by the Bank of Communications would be repaid by the issuing of internal bonds.
  10. ^ "Communication, n.". The Oxford English Dictionary.
  11. ^ Trotter, R.A., Captain J. K. (1881). "The Military Prize Essay, 1881. Military Operations in the United Kingdom Considered, Particularly as Influenced by the Enclosed Nature of the Country". The Journal of the Royal United Service Institution. XXV (CIX): 3. Means of Communication. These may be divided into rail communications, road communications, and water communications.
  12. ^ Tsai, Ching-yuan (June 1, 1975). "President C. K. Yen carries on". Taiwan Today. His financial accomplishments included a revision of the tax system, budget and foreign exchange reforms, acceleration of economic development, and reactivation of the Central Bank of China, the Bank of China and the Bank of Communications.
  13. ^ a b "Guó wù yuàn guān yú chóng xīn zǔ jiàn jiāo tōng yín háng de tōng zhī" 国务院关于重新组建交通银行的通知 (Press release) (in Chinese (China)). State Council of the People's Republic of China. 24 July 1986 [digital version was published on 6 September 2013]. Retrieved 30 October 2017.
  14. ^ "交通银行简介" (in Chinese (China)). Retrieved 2018-12-25.
  15. ^ "Bank of Communications (BKFCF) Stock Price, Financials and News". Fortune. Retrieved 2018-12-25.
  • Business data for Bank of Communications:
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