Industrial and Commercial Bank of China
|中国工商银行 zhong guo gong shang yin hang|
|Type||Public; State-owned enterprise|
|Chen Siqing (陈四清 Chairman)  |
Gu Shu (Chief Executive Officer) 
|Products||Finance and insurance|
Global wealth management
|Revenue|| CN¥725.12 billion|
$105.4 billion (2018)
| CN¥369.32 billion|
$53.68 billion (2018)
| CN¥298.72 billion|
$43.42 billion (2018)
|Total assets||CN¥27.70 trillion US$4027.44 billion (2018)|
|Total equity|| CN¥2.33 trillion|
$338.7 billion (2018)
Number of employees
|453,048 (2018) |
|Literal meaning||China Industrial and Commercial Bank, Company Limited by Shares|
|Alternative Chinese name|
|Second alternative Chinese name|
|Capital ratio||12.87% (CET1)|
Founded as a limited company on 1 January 1984, ICBC is a state-owned commercial bank. With capital provided by the Ministry of Finance of China, the bank's Tier 1 capital in 2013 was the largest of one thousand global banks, being the first bank headquartered in China to achieve this distinction in modern history. Subsequently, ranked the largest bank in the world 2017 and 2018, by total assets, (31 December 2018, US$4027.44 billion ), ICBC was positioned at 1st in The Banker's Top 1000 World Banks ranking, every year from 2012 to 2019, and first (2019) on the Forbes Global 2000 list of the world's biggest public companies. It is considered a systemically important bank by the Financial Stability Board.
Preconditions of 1948-1979
From 1948 the mono-banking system of China was the People's Bank of China, providing both policy lending, and, operations to the commercial sector. During 1978 to 1979 banking reform was initiated by the government of China, with the express desire of bringing into existence a central bank accompanying four total central governmentally owned specializing banks, one of these four being ICBC.
By rights of a contradiction within the economic functioning of the government of China, the People's Republic, the State Council of China, during September of  1983 made a decision to separate certain activities of the government to an exclusively operating organisation, subsequently named the Industrial and Commercial bank of China, established on 1 January 1984.[non-primary source needed] ICBC was then the fourth of the four specialist banks of 1978–1979 to be made, from the taking of control of commercial activities  ("industrial credit and savings business" ) from People's Bank of China so that the latter might be transformed to a newly made central bank.
ICBC opened a branch in Luxembourg which became the European headquarters of the bank in 2011. ICBC (Europe) S.A. operates a network covering branches in major European cities, namely Paris, Amsterdam, Brussels, Milan, Madrid, Barcelona, Warsaw and Lisbon.
As of 2006, ICBC had 2.5 million corporate customers and 150 million individual customers.
In the runup to its planned initial public offering, on 28 April 2006, three "strategic investors" injected US$3.7 billion into ICBC:
- Goldman Sachs purchased a 5.75% stake for US$2.6 billion, the largest sum Goldman Sachs has ever invested.
- Dresdner Bank (a wholly owned subsidiary of Commerzbank) invested US$1 billion.
- American Express invested US$200 million.
ICBC was simultaneously listed on both the Hong Kong Stock Exchange and Shanghai Stock Exchange on 27 October 2006. It was the world's largest IPO at that time valued at US$21.9 billion, surpassing the previous record US$18.4 billion IPO by Japan's NTT DoCoMo in 1998. In 2010, Agricultural Bank of China broke ICBC's IPO record when it raised $22.1 billion. China's largest commercial bank was also the first company to debut simultaneously on both the Hong Kong and Shanghai stock exchanges.
ICBC raised at least US$14 billion in Hong Kong (H-shares) and another US$5.1 billion in Shanghai (A-shares). Due to heavy subscriptions, the greenshoe (i.e. over-allotment) placements were exercised and ICBC's take rose to US$21.9 billion (17% of ICBC's market value before the IPO), divided in US$16 billion in Hong Kong and US$5.9 billion in Shanghai. Following the global offering, the free float of shares was 22.14% of the market capitalization.
At the end of its first day of trading, the bank's shares closed up almost 15% at HK$3.52 in Hong Kong, compared with the listing price of HK$3.07, which was set at the top of the indicative range due to the strong demand. According to Bloomberg, ICBC's market capitalisation at the end of trade based on its Hong Kong shares was US$156.3 billion, making its equity the world's fifth highest among banks, just behind JPMorgan Chase. Meanwhile, ICBC's Shanghai-listed A-shares recorded more modest gains and ended up 5.1% from the offering price of RMB 3.12.
During July 2007 ICBC was ranked 30th in the world in terms of revenue.
In August 2008, ICBC became the second Chinese bank since 1991 to gain federal approval to establish a branch in New York City. ICBC had signed a lease with the Trump Organization for office space in the Trump Tower in 2008. ICBC was Trump Tower's largest office tenant as of 2012.
ICBC loans $400 million towards the completion of the Gibe III dam in Ethiopia. Groups that oppose the dam such as International Rivers and Survival International have complained about or have written to ICBC against the dam's funding.
On 24 January 2011, ICBC opened a branch office in Madrid, Spain.
On 20 May 2011, Industrial and Commercial Bank of China Ltd. established two branches in Pakistan, one in Karachi, the other in Islamabad. On 18 August 2011, ICBC passed the examination from State Bank of Pakistan and started its business in Pakistan.
During November 2012, ICBC acquires a 80% stake (valued at $600 million) of Standard Bank Argentina, the largest operation of a Chinese bank in Latin America. In Argentina, the bank has ~1,000,000 individual customers, ~30,000 companies of all categories and more than 1600 corporate companies.
During the 2013 Korean crisis, the Industrial and Commercial Bank of China halted business with a North Korean bank accused by the United States of financing Pyongyang's missile and nuclear programs.
It was announced at the end of July 2013 that South Africa's Standard Bank was in talks to sell its markets business in London to the Industrial and Commercial Bank of China for more than $500 million.
On 24 September 2014, ICBC Kuwait Branch officially opened in Kuwait City, capital of Kuwait. As the first and currently the only Chinese bank in Kuwait, the establishment of ICBC Kuwait Branch ended the history of no Chinese bank's presence in Kuwait. Meanwhile, it is also the fourth branch of ICBC in the Middle East, following branches in Dubai, Abu Dhabi and Doha.
On 18 November 2016, the bank obtained a license to take deposits in Russia.
ICBC Financial Services, the bank's brokerage unit, provided about $88 billion of repo financing at the end of 2015, up from $59 billion two years ago, according to regulatory filings. The figures are before netting agreements that can be used to reduce overall assets and liabilities. Almost all the repo financing that ICBC provides is on U.S. government bonds.
In October 2017, the Bank reported a 3.3 percent rise in its net profit for the third quarter.
ICBC has the policy  of preparing accounts confirming to the  International Financial Reporting Standards, accepting specifically criteria IFRS 9 (pertains to the definition and rating of asset, liability, and a number of all of the existing purchasing contracts for non-financial purchases ) from 1 January 2018. and IFRS 16 (pertaining to lease ) from 1 January 2019.
In 2005, net profit was up 12.4% to RMB 33.7 billion, and the total loan balance was RMB 3,289.5 billion. Total liabilities are RMB 6,196.2 billion, up 11.2%. Delinquent or non-performing loans (NPL) total RMB 154.4 billion, a significant reduction although the figures are widely regarded as being somewhat higher than officially stated. It has an NPL ratio of 4.69% and a capital adequacy ratio of 9.89%.
|Net Income, bln||2.473||2.311||33.70||49.26||81.52||110.8||129.4||166.0|
|Net Income, bln||208.4||238.7||263.0||276.3||277.7||279.1||287.5||298.7|
Listed to industry
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)
- 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 Asset Management, 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 are typically around 1%).
Board of Directors
The company has 449, 226 employees, there are 24 members of the board, with one Chairmen, one Supervisory Board Chairman and one Vice-Chairman. Chen Siqing, the current Chairman, assumed his role after resigning in April 2019 from Bank of China, where he was the Chair, Executive Director and chairman and participating board member within the Strategic Development Committee. Siqing had no disagreement with the Board at the time of his resignation, made purely for the reason of vocational change to ICBC. Yi Huiman, the previous chairman, finished with the company to fulfil the position of chairman at the China Securities Regulatory Commission.
As of 17 May 2020, the board is as stands:
- Chen Siqing (陈四清), chairman of ICBC, former Bank of China chairman
- Gu Shu, president of ICBC
- Lu Yongzhen, former director on the National Development and Reform Commission
- Zheng Fuqing, former Ministry of Finance of the People's Republic of China official
- Mei Yingchun, former Ministry of Finance of the People's Republic of China and World Bank official
- Feng Weidong, former secretary of the Ministry of Finance of the People's Republic of China
- Cao Liqun, former State Administration of Foreign Exchange official
- Anthony Francis Neoh, former Hong Kong SEC chairman
- Yang Siu Shun, former chairman of PricewaterhouseCoopers Hong Kong
- Shen Si, former executive director of Shanghai Pudong Development Bank
- Nout Wellink, former president and chairman of De Nederlandsche Bank
- Fred Zuliu Hu, former IMF and World Economic Forum official
Environmental policy and record
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.
- ICBC Credit Suisse Asset Management Co., Ltd.
- Industrial and Commercial Bank of China (Asia)
- Industrial and Commercial Bank of China (Canada)
- Industrial and Commercial Bank of China USA NA
- Industrial and Commercial Bank of China (Macau)
- Industrial and Commercial Bank of China (Thai)
- ICBC Turkey
- ICBC Argentina
- Industrial and Commercial Bank of China (Pakistan)
In 2005, the Chinese government arrested several government officials in addition to bankers with regards to the accusation of a scheme to take illegally US$900 million from ICBC.
In November 2015, ICBC Standard Bank, an overseas subsidiary acquired in February of that year, agreed to pay a fine of a maximum of $40 million to UK authorities.
In 2018, the US Federal Reserve had found "serious deficiencies" of the bank, on, anti-money laundering protections.
- Chinese language version and transliteration here does not include the word "Limited", as shown within the introduction; c.f. (foot of p.207) "..ICBC's legal status was changed..its new name changed to ICBC Limited...", in, Franklin Allen, Darien Huang, Jun 'QJ' Qian, Mengxin Zhao (2012) — p.207 of (Masahiko Aoki, Jinglian Wu; editors) — The Chinese Economy: A New Transition, published by Palgrave Macmillan 19 October 2012 ISBN 1137034300, ISBN 9781137034304 - accessdate 2020-02-08 ("limited" sourced originally from within ICBC Business Review, published by ICBC, - accessed 2020-02-06)
- Xiuwen Feng (2016) — On Aesthetic and Cultural Issues in Pragmatic Translation: Based on the Translation of Brand Names and Brand Slogans, (page after "Section 1"), published by Routledge 15 July 2016, ISBN 1317528549, ISBN 9781317528548 - accessdate 2020-02-08 (page locatable using the search criteria "the chinese word for Industrial and commercial bank of China": link directs to Google return page not source; this source used to source "Pinyin", transliteration (phonetic) of pinyin version and to verify actual pinyin version)
- Learn Chinese Words, published by http://learn-chinese-words.com - accessdate 2020-02-08 < - accessed from Google translate return of copy from within http://big5.icbc.com.cn/icbc/ (Chinese language) - accessdate 2020-02-08
- "MOVES-China picks BoC boss Chen Siqing to head top bank ICBC - sources". Reuters. 22 April 2019. Retrieved 24 July 2020.
- Si Qing Chen, 58 Chairman, Industrial & Commercial Bank of China Ltd., published by the Wall Street Journal - accessed 7 February 2020
- #1 ICBC, published by Forbes, &, Board of Directors, published by ICBC - accessed 7 February 2020
- "Annual Report 2018" (PDF). Industrial and Commercial Bank of China. Archived from the original (PDF) on 2 June 2019. Retrieved 31 May 2019.
- "ICBC Annual Report 2016" (PDF). ICBC. Archived (PDF) from the original on 1 December 2017. Retrieved 28 November 2017.
- Francis Garrido & Saqib Chaudhry (2019) — The world's 100 largest banks, published 5 April 2019 by S & P Global - accessed 8 February 2020
- 中央汇金投资有限责任公司 - (Central Huijin Investment Co., Ltd) & Bank Profiles, BankTrack, published November 2016, republished 2019 April 12 - accessdate 7 February 2020
- "The World's Biggest Public Companies List - Forbes". Archived from the original on 1 April 2019. Retrieved 11 April 2019.
- 2016 Annual Report (PDF) (Report). Industrial and Commercial Bank of China. 2017. Retrieved 6 February 2020.
- Wei Lee & Steven Shuye Wang (2015) — 2 Institutional Background and Data 2.1 China's banking industry, in, (Douglas Cumming, Alessandra Guariglia, Wenxuan Hou, Edward Lee; editors) Experiences and Challenges in the Development of the Chinese Capital Market, published by Springer 2015, ISBN 1137454636, ISBN 9781137454638 - accessed 26 February 2020
- The Banker, "Chinese bank tops global 1,000 ranking for first time". BBC. 1 July 2013. Archived from the original on 1 July 2013. Retrieved 1 July 2013.
- Bank Rankings – Top Banks in the World, published by Accuity (Reed Business Information Limited) - accessdate 9 February 2020
- http://www.icbc.com.cn/icbc/en/newsupdates/icbc%20news/ICBCRanksFirstamongTop1000WorldBanksforSevenConsecutiveYears.htm - accessed 2 February 2020 (this source was used to add part not all of the associated content)
- "The World's Biggest Public Companies List - Forbes". Archived from the original on 10 April 2015. Retrieved 6 November 2016.
- D. Luo (2016) — The Development of the Chinese Financial System and Reform of Chinese Commercial Banks, p.1 - 1.1, published Springer 8 March 2016 ISBN 1137454660, ISBN 9781137454669 The Nottingham China Policy Institute Series - accessed 26 February 2020
- C. Meng (2009) — Multinational Banking in China: Theory and Practice, p.30 - THE LIBERALIZATION PROCESS OF CHINA'S BANKING INDUSTRY, published at Edward Elgar Publishing 1 January 2009 ISBN 184844611X, ISBN 9781848446113, New horizons in international business - accessed 2020-02-26
- http://www.icbc-ltd.com/ICBCLtd/About%20Us/ICBC%20History/ - accessed 8 February 2020
- Vários Autores, Hassanali Mehran, Bernard Laurens, Marc Quintyn, Thomas Nordman, International Monetary Fund Staff (1996) — Monetary and Exchange System Reforms in China: An Experiment in Gradualism, p.12 (loads to 10), published by the International Monetary Fund 26 September 1996 ISBN 1557755620, ISBN 9781557755629, IMF Occasional Paper no. 141 - accessed 26 February 2020
- 北京市人民政府批转《中国人民银行北京市分行关于银行体制改革的请示》的通知 (Press release) (in Chinese). Beijing Municipal People's Government. 31 January 1984. p. 3. Retrieved 6 February 2020.) - re-access (using translation function) 26 February 2020
- "Gateway to Europe-Business-chinadaily.com.cn". usa.chinadaily.com.cn. Archived from the original on 4 March 2016. Retrieved 4 December 2017.
- "ICBC's Five Branches in Europe Start Operation". Icbc.com.cn. Archived from the original on 16 September 2016. Retrieved 11 January 2017.
- "Nation's largest commercial bank launches IPO". Chinadaily.com.cn. 27 September 2006. Archived from the original on 29 August 2018. Retrieved 4 December 2017.
- "A dragon stirs". The Economist. 12 October 2006. Archived from the original on 7 November 2006. Retrieved 3 December 2006.
- "VRL KnowledgeBank". 29 September 2007. Archived from the original on 29 September 2007. Retrieved 4 December 2017.
- [dead link]
- "HITC Business - News". News.hereisthecity.com. Archived from the original on 11 March 2011. Retrieved 11 January 2017.
- "Order Approving Establishment of a Branch-Industrial and Commercial Bank of China Limited" (PDF). Federalreserve.gov. Archived (PDF) from the original on 1 August 2017. Retrieved 4 December 2017.
- Melby, Caleb (28 November 2016). "When Chinese Bank's Trump Lease Ends, Potential Conflict Begins". Bloomberg.com. Bloomberg L.P. Retrieved 17 December 2020.
- China's largest bank to fund devastating Ethiopian dam Archived 14 June 2010 at the Wayback Machine, Survival International
- China's Biggest Bank to Support Africa's Most Destructive Dam Archived 17 June 2010 at the Wayback Machine, International Rivers
- "Spain's Civil Guard Launches Money Laundering Operation Against China's ICBC In Madrid". Thespainreport.com. Archived from the original on 27 May 2018. Retrieved 11 January 2017.
- "More Chinese banks stop transactions with N.Korea - Mubasher". English.mubasher.info. 11 May 2013. Archived from the original on 12 October 2017. Retrieved 18 May 2013.
- Standard Bank to sell London business to ICBC for over $500 mln, International: Reuters, 31 July 2013, archived from the original on 24 September 2015, retrieved 1 July 2017
- [dead link]
- "ICBC becomes active in Turkey". Hurriyet Daily News. 25 May 2015.
- "Using Chinese Money, a Hedge-Fund Startup Bets Big in Treasuries", Bloomberg.com, 22 August 2016, archived from the original on 22 October 2016, retrieved 7 March 2017
- "ICBC launches robo-adviser service for wealth-management products". South China Morning Post. Archived from the original on 14 November 2017. Retrieved 14 November 2017.
- "ICBC Begins Robo Wealth Management". Finews.asia. Archived from the original on 15 November 2017. Retrieved 14 November 2017.
- "UPDATE 1-China's top bank ICBC Q3 profit rises 3.3 pct, above estimates". Reuters. 2017. Archived from the original on 15 November 2017. Retrieved 14 November 2017.
- Offering Circular, p.6, London Stock Exchange - accessdate 9 February 2020
- ifrs standards, published by Corporate Finance Institute Education Inc - accessdate 9 February 2020
- List of standards, published by IFRS - accessdate 9 February 2020
- List of standards, published by IFRS - accessdate 9 February 2020
- "Annual Report 2004" (PDF). Industrial and Commercial Bank of China Limited. Archived (PDF) from the original on 16 August 2011. Retrieved 22 July 2018.
- "Annual Report 2005" (PDF). Industrial and Commercial Bank of China Limited. Retrieved 22 July 2018.
- "Annual Report 2008" (PDF). Industrial and Commercial Bank of China Limited. Archived (PDF) from the original on 13 October 2017. Retrieved 22 July 2018.
- "Annual Report 2011" (PDF). Industrial and Commercial Bank of China Limited. Archived (PDF) from the original on 24 July 2018. Retrieved 22 July 2018.
- "Annual Report 2014" (PDF). Industrial and Commercial Bank of China Limited. Archived (PDF) from the original on 17 May 2018. Retrieved 22 July 2018.
- "Annual Report 2017" (PDF). Industrial and Commercial Bank of China Limited. 27 March 2018. Archived (PDF) from the original on 23 July 2018. Retrieved 22 July 2018.
- "C05022403.htm". 21 October 2006. Archived from the original on 21 October 2006. Retrieved 4 December 2017.
- Mitchell, Tom (28 October 2006). "ICBC surges on completion of IPO". Ft.com. Retrieved 11 January 2017 – via Financial Times.
- "China approves $15B bank injection". MarketWatch.com. Archived from the original on 13 January 2017. Retrieved 11 January 2017.
- "PRIVATE SECTOR ASSESSMENT" (PDF). 7 October 2007. Archived from the original (PDF) on 7 October 2007. Retrieved 4 December 2017.
- Company Info Industrial & Commercial Bank of China Ltd., published by the Wall Street Journal, - accessdate 7 February 2020
- Announcement, published and written by Bank of China - accessdate 7 February 2020
- South China Morning Post (2019) — Chen Siqing named ICBC chairman as string of management changes at China’s top financial institution continues, published by Bloomberg 22 April 2019 - accessdate 7 February 2020
- http://www.icbc-ltd.com/ICBCLtd/Corporate%20Governance/Board%20of%20Directors/Board%20of%20Directors/ ICBC Board
- "Ethiopia Dam Blot on China's Aid Record". South China Morning Post, Hong Kong. 7 June 2010. Archived from the original on 28 March 2014. Retrieved 2 September 2012.
- Motoko Aizawa, Sustainability Advisor, International Finance Corporation. "China s Green Credit Policy" (PDF). pp. 24 February 2011. Archived (PDF) from the original on 19 March 2013. Retrieved 2 September 2012.CS1 maint: multiple names: authors list (link)
- Browne, Andrew (18 January 2005). Written at Hong Kong. "Arrests Made in ICBC Scandal". The Wall Street Journal. New York City. Retrieved 6 February 2020.
- Bowers, Simon (27 November 2015). "ICBC Standard Bank agrees deferred prosecution settlement with SFO". The Guardian. London. Retrieved 6 February 2020.
- "Directors of Chinese bank arrested in Spain in money laundering probe" (Press release). Europol. 17 February 2016. Retrieved 6 February 2020.
- Feng, Emily; Sender, Henny (14 March 2018). Written at Beijing and Hong Kong. "Fed finds 'serious deficiencies' at China's ICBC". Financial Times. London.
- "ICBC". Forbes. Retrieved 6 February 2010.
- Swift, Ryan (16 May 2019). "Industrial and Commercial Bank of China tops Forbes' Global 2000 list for seventh year, while 'Made in China 2025' sectors languish". South China Morning Post. Hong Kong. Retrieved 6 February 2020.