Industrial Bank Striding for the First-class
2005, the last year of the Tenth Five-Year Plan as well as the reform and breakthrough year for Chinese banking industry. Along with its continuous innovation movement, Industrial bank again submitted a piece of satisfying answer sheet at the end of this year. The data (before audited) up to the end of 2005 revealed that compared with the beginning of the year, the total assets amounted to 474 billion, increased 39%; the total deposit outstanding reached 353.8 billion, raised 25%; the total loan outstanding achieved 241.9 billion, went up 19%; the rate of NPL kept on declining according to the five-category assets classification; the asset quality still occupied the front ranks in domestic banking industry; and the net profit also mounted up a percentage of 25. All these brought a consummate ending to the 2001-2005 Plan of Industrial Bank. Some insiders hold that the Industrial Bank has achieved the top level standard in both asset quality and earning capacity areas in domestic banking industry.
According to the relative people who in charge in the Industrial Bank, the bank has achieved leap-forward development in five operational and managerial areas during the past Tenth Five-Year Plan period.
The first is the substantial boost of comprehensive operational capability. All business developed in a sustained, rapid and coordinated way. The total asset, total deposit and loan outstanding were 5.5 times and 6.8 times higher than that at the end of 2000 with annual growth rate of 41% and 47% respectively. Accumulative total of net profit reached 5.5 billion in recent 5 years with compounded growth rate of 42%. The capital strength was also greatly enhanced. After successfully introducing 3 foreign investors -- Hang Seng Bank, International Finance Corporation, and the Government of Singapore Investment Corporation Pte Ltd., firstly issuing the long-term fixed subordinated debt and mixed capital bond in domestic banking industry, the net capital of the bank has hit the point of 20 billion. This amount was 5.1 times higher than that at the end of the 2000 with yearly growth rate of 39% and is a reason for the capital adequacy ratio to keep at a stable rate over 8% in recent years.
The second is the express and sound service network. The first 14 branches have been settled in Nanjing , Ningbo , Chongqing , Jinan , Shenyang , Wuhan , Chengdu , Tianjin , Xian, Zhengzhou , Taiyuan , Kunming , Dongguan and Foshan. At present, there are total 29 branches and more than 300 sub-branches that cover main economic regions in China . By creating market-driven mode to merger city credit unions as well as city commercial banks in domestic banking industry, the bank has blazed a new trail of institution expansion. Now, the Financial Market Center , Credit Card Center , VIC Department and Asset Trusteeship Department have been moved to Shanghai or Beijing , marking a more market-frontier oriented operation and more optimized service pattern. Nationwide online banking and telephone banking network also promote the whole service network to be more and more national.
The third is the sustained improvement of comprehensive operation quality and the remarkable business innovation. The risk management and inner control improve continuously and the asset quality upgrades steadily. According to the five-category assets classification, the rate of NPL has declined 7% since the end of 2000. Customer base keeps on expanding and the business structure keeps on being optimized. Product line in corporate banking, retail banking and institutional banking moves persistently to a rich variety. Product brands such as CIB Fortune, Wealth Management, WLB, WHT and Bank-Bank Platform have fostered certain image. New banking services including fund trading, asset trusteeship, investment banking and credit card have been successfully operated with a perfect start. The CIB Garfield Credit Card and Wealth Management series family financing card have received popular response since the one is the first cartoon card in China and the other is the first card to promote family wealth management idea in domestic banking service. By underwriting 1 billion short-term financing bond of Xianglu Petrochemicals Co., Ltd., the bank fulfilled the zero breakthrough of issuing Taiwan enterprise's short-term financing bond in mainland. In 2005, the bank's Data Processing Methodology and System for Uninterrupted Service was given patent of invention by State Intellectual Property Office (SIPO). At present, Industrial Bank has become the first commercial bank received the patent for invention in the name of operation system and methodology.
The fourth is the gradually maturing corporate governance and institutional innovation. With the basic structure and core system formed in line with international practice and national reality, with the balanced operational system that well defines power and responsibility, the framework of modern corporate governance has been established. Through the exploration of inner control system of risk and the vertical hierarchy pattern of business management, by promoting the construction of various professional departments, the framework of unified management and integrated operation are greatly enhanced. The mode of business management and organizational structure becomes to make a unique figure. Furthermore, accompanied with more scientific incentive and regulating system, more perfect assessment and evaluation system, and much sounder structure of employees, the construction of corporate culture has procured remarkable achievements.
The fifth is the notable influence of bank position and brand image. With successful change of its title name, the bank has transited itself from a regional bank to a national bank and occupies a significant position in Chinese banking industry. It was in 2001 that The Banker magazine firstly to rank the Industrial Bank as one of the top 1000 world banks. In recent 5 years, the rank of the bank keeps on rising in a leaping way. According to the latest data released by The Banker , the bank ranks the 325th by tier 1 capital, 243 ranks higher than that in 2001, and ranks the 210th by total asset, 203 ranks higher than that in 2001. The bank has sent itself to the list of top 300 world banks.
People who in charge of the bank expressed that at the beginning year of the new Five-Year Plan, the bank will continuously stride forward. In 2006, the bank will actively face the tough challenge during the ending transitional period of joining WTO and grasp the strategic opportunity of maketnization, internationalization and integration of domestic financial market in the future 5 years; will focus on the strategic transition of business development mode and earning pattern; will improve modern corporate governance, institutional system and mechanism; will steadily optimize the operational pattern that directed by efficient capital allocation; will substantially boost the comprehensive operational capacity and upgrade the comprehensive operational quality; will strive to build a bank with steady operation, standardized management, rapid growth, advance service, unique feature and high return; will insist on the goal of "Striving to build a top-ranking bank with a history of centuries".