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Industrial and Commercial Bank of China

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"ICBC" redirects here. For other uses, see ICBC (disambiguation).
Industrial and Commercial Bank of China Ltd.
Native name
中国工商银行股份有限公司
Company typePublic company
SEHK: 1398
SSE: 601398
OTC Pink: IDCBY
IndustryBanking
Financial services
Investment services
FoundedBeijing, China
(1984; 40 years ago (1984))
Headquarters
Beijing
,
China
Key people
Jiang Jianqing
(Chairman & Executive Director)
Luo Xi (Vice president)
ProductsFinance and insurance
Consumer banking
Corporate banking
Investment banking
Investment management
Global wealth management
Private equity
Mortgage loans
Credit cards
RevenueCN¥475.21 billion (2011)[1]
390,822,000,000 renminbi (2020) Edit this on Wikidata
CN¥208.44 billion (2011)[1]
Total assetsCN¥23.097 trillion (2015)[1]
Total equityCN¥957.82 billion (2011)[1]
OwnerChinese Government
Number of employees
375,354 (2014)[1]
WebsiteTemplate:En icon ICBC.com.cn
Industrial and Commercial Bank of China
Simplified Chinese中国工商银行
Traditional Chinese中國工商銀行
Transcriptions
Standard Mandarin
Hanyu PinyinZhōngguó Gōngshāng Yínháng
Alternative Chinese name
Chinese工行
Transcriptions
Standard Mandarin
Hanyu PinyinGōngháng

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.[2] 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 March 2014, it had assets of US$3.62 trillion.[3] Generally considered the largest bank in the world by assets;[4][5][6] it is the first Chinese bank to achieve such a feat.[7][8][9] 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.

History

1999

ICBC opened a branch in Luxembourg which became the European headquarters of the bank in 2011.[10] ICBC (Europe) S.A. operates a network covering branches in major European cities, namely Paris, Amsterdam, Brussels, Milan, Madrid, Barcelona, Warsaw and Lisbon.[11]

2005

The bank's Hong Kong operations are listed under the name ICBC Asia. It has purchased the Hong Kong subsidiary of Fortis Bank and rebranded it under its own name on 10 October 2005.

2006

In the runup to its planned initial public offering, on 28 April 2006, three "strategic investors" injected US$3.7 billion into ICBC :

World's largest IPO (at the time)

ICBC Bank in Beijing
The ICBC building in Xi'an
The ICBC building in Shanghai
The ICBC building in Tokyo
ICBC Canada
Torre Madero Office, the current ICBC headquarters in Buenos Aires

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.[14] In 2010, AgBank 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.

2008

In August 2008, ICBC became the second Chinese bank since 1991 to gain federal approval to establish a branch in New York City.[15]

At the 2008 ALB China Law Awards, ICBC was crowned:

  • In-House of the Year - Banking & Financial Services In-House Team of the Year
  • In-House of the Year - China In-House Team of the Year

2010

In 2010, ICBC loaned $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.[16][17]

2011

On January 24, 2011, ICBC opened a branch office in Madrid, Spain. [18]

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.

2012

2012 In November, ICBC acquired for $600 million 80% stake of Standard Bank Argentina and, six months later, the change was made in the 103 branches that the South American bank had in the country. It is 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 over 1600 corporate companies .

2013

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.[19]

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.[20]

2014

On September 24, 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. Kuwaiti Deputy Prime Minister and Minister of Commerce and Industry Abdulmohsen Al-Madaj, Chairman of ICBC Jiang Jianqing, and China’s ambassador to Kuwait Cui Jianchun and other officials and guests attended the opening ceremony held in Kuwait City on September 24.

ICBC is not only the first Chinese bank to set up operating branches in the Middle East, but also the biggest Chinese bank in the region in terms of total number of branches and business scale. The establishment of ICBC Kuwait Branch has further optimized the Bank’s service network in the Middle East and represents another important achievement of the Bank’s international operation strategy. ICBC Kuwait Branch has full-suite banking license, offering high-quality financial products and diversified and comprehensive financial services tailored to customers’ needs. Meanwhile, it will continue cooperating with other ICBC institutions in the Middle East to upgrade its comprehensive service capability in Kuwait.

As discussed by ICBC Senior Officials, the bank is open to alternative banking and financing and would like to seek more guidance on best practices.[21]

2014 was an outstanding year for ICBC, ranking 1st in the Top 1000 World Banks,[9] based on tier 1 capital, and also being recognised as The Banker's Global Bank of the Year.[22]

2016

On February 17, 2016, Spanish Guardia Civil raided the offices of ICBC in Madrid, Spain, investigating suspicions of money laundering. [23]

Basic figures

As of 2006, ICBC has 2.5 million corporate customers and 150 million individual customers.[24] 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%.

As of December 2, 2014, ICBC is ranked the largest bank in the world by assets and by tier 1 capital.[25] In July 2007 it was ranked 30th in the world in terms of revenue.[26]

Loans by 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)

Total: 3,289,553

Loan collateral

  • Secured by mortgages: 34.1%
  • Secured by other collateral: 22.1%
  • Guaranteed loans: 23.3%
  • Unsecured loans: 20.5%

Non-performing loans

At the end of 2004, 19.1% of ICBC's portfolio consisted of non-performing loans.[27] 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.[28] This included an approval for a cash injection of US$15 billion (financed from China's massive foreign exchange reserves) on 28 April 2005.[29] 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%).[30]

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.[31] It has also adopted the Green Credit Policy launched in 2007 by the Chinese Ministry of Environmental Protection.[32] 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.[31]

Subsidiaries

International

See also

References

  1. ^ a b c d e Financial Statements for Industrial and Commercial Bank of China - Google Finance
  2. ^ Wells Fargo world's most valuable bank. Fortune.com. Retrieved 29 August 2015.
  3. ^ "Top Banks in the World 2014". Banks around the World. 2015-03-07.
  4. ^ "ICBC". Forbes. Retrieved April 19, 2013.
  5. ^ "The World's Biggest Public Companies". Forbes. Retrieved June 6, 2011.
  6. ^ "Top 1000 World Banks 2013". The Banker. Retrieved July 1, 2013.
  7. ^ "Chinese bank tops global 1,000 ranking for first time". BBC. 1 July 2013. Retrieved July 1, 2013.
  8. ^ "Bigger big banks". The Economist. 30 June 2014. Retrieved July 17, 2014.
  9. ^ a b "Top 1000 World Banks 2014". The Banker. 30 June 2014. Retrieved July 17, 2014.
  10. ^ http://usa.chinadaily.com.cn/epaper/2014-03/17/content_17352711.htm
  11. ^ http://www.icbc.com.cn/icbc/icbc%20news/icbcs%20five%20branches%20in%20europe%20start%20operation.htm
  12. ^ "A dragon stirs". The Economist. 12 October 2006.
  13. ^ a b http://www.financialservicesdistribution.com/get.asp?script=article&ID=28963
  14. ^ http://web.archive.org/web/20110521234112/http://edition.cnn.com/2006/BUSINESS/09/27/china.icbc.reut/index.html. Archived from the original on May 21, 2011. {{cite news}}: Missing or empty |title= (help); Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  15. ^ Order Approving Establishment of a Branch-Industrial and Commercial Bank of China Limited
  16. ^ China's largest bank to fund devastating Ethiopian dam, Survival International
  17. ^ China's Biggest Bank to Support Africa's Most Destructive Dam, International Rivers
  18. ^ https://www.thespainreport.com/articles/640-160217111501-spain-s-civil-guard-launches-money-laundering-operation-against-china-s-icbc-in-madrid
  19. ^ "More Chinese banks stop transactions with N.Korea - Mubasher". English.mubasher.info. 2013-05-11. Retrieved 2013-05-18.
  20. ^ Standard Bank to sell London business to ICBC for over $500 mln, International: Reuters, 31 July 2013
  21. ^ ICBC Sets up Kuwait Branch, International: www.icbc.com, 22 October 2014
  22. ^ "Bank of the Year Awards 2014 – global and regional winners". The Banker. 28 November 2014. Retrieved 13 March 2015.
  23. ^ https://www.thespainreport.com/articles/640-160217111501-spain-s-civil-guard-launches-money-laundering-operation-against-china-s-icbc-in-madrid
  24. ^ http://www.chinadaily.com.cn/china/2006-09/27/content_698025.htm.
  25. ^ http://www.thebanker.com/cp/20/T1000_25_Tier1&TotalAssets.gif
  26. ^ World's Largest Banks / Securities Firms By Revenue
  27. ^ http://www.chinaonline.com/headlines/cs-protected/C05022403.htm
  28. ^ ICBC surges on completion of IPO - FT.com
  29. ^ China approves $15B bank injection -report - MarketWatch
  30. ^ http://www.adb.org/Documents/Reports/PSA/PRC/PRC_PSA.pdf
  31. ^ a b "Ethiopia Dam Blot on China's Aid Record". South China Morning Post, Hong Kong. 7 June 2010. Retrieved 2 September 2012.
  32. ^ Motoko Aizawa, Sustainability Advisor, International Finance Corporation. "China s Green Credit Policy" (PDF). pp. 24 February 2011. Retrieved 2 September 2012. {{cite web}}: |last= has generic name (help)CS1 maint: multiple names: authors list (link)
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