According to the data from current working conference of Industrial Bank, the past 2005 year saw a strong business boost of the bank. The data (before audited) up to the end of 2005 revealed that compared with the beginning of 2005, the total assets amounted to 474.034 billion, increased 134.046 billion with a growth rate of 39.43%; the total deposit outstanding reached 353.775 billion, raised 24.93% with a number of 70.589 billion; the total loan outstanding achieved 241.902 billion, went up 19.16% with a number of 38.891 billion; and the profit after tax realized 2.398 billion, climbed up 43.16% over last year. The index of retail service was particularly noticeable with total wealth management capital increased 78.56% and the personal loan advanced 76.83%. Accompanied with strong business boost, the operational and managerial quality keeps in a leading position in domestic banking industry. All indexes continuously measure up the regulatory requirement. According to the five-category assets classification, the rate of NPL was 2.08%, has declined 0.42% since the beginning of the year. At the end of 2005, total net capital has achieved 20.077 billion with a capital adequacy ratio of 8.13%.
Looking into the year 2006, the bank will give priority to the goal of new five-year plan and the realization of IPO. Aims at developing business in a coordinate, rapid, sound and all-round way, striving to build a bank with steady operation, standardized management, rapid growth, advance service, unique feature and high return, the bank will put more emphasize on efficient capital allocation, expediting structure adjustment, promoting the strategic transition of business development and earning mode deeply.
In order to actualize the above goals, the bank will stress the following five aspects:
Adjusting structure, enhancing innovation and promoting all-round business
The bank has new moves on corporation, institutional, retail and rising services. The corporation service will put emphasis on cultivating and developing core customer, launching integrated service package for small and medium-size enterprises, and starting "533 program" (a program to increase 300 billion high-quality credit assets from and to create 3 unique product series for small and medium-size enterprises through 5 years) of small and medium-size enterprises. For institutional service, the core service on bank-bank platform and bank-security link will maintain to be the key parts. As to retail service, the bank will set up consumption credit center with centralized management in each branch, and will ameliorate the work flow of retail business. All these aim to develop the retail asset business stress on housing loan, consumption credit, credit card and small business loan. After obtained the qualification of the RMB market maker last year, the bank will promote its rising business by endeavoring to be an influential market maker in more areas such as the institutional FX market, RMB bond market and some derivative product market.
Promoting active, coordinated and deep reform in an all-round way
The bank will adjusts and improves its organizational structure on the base of the idea -- "Bank with Flow". Construction for retail bank in headquarter will be speeded up and centralized operation and vertical hierarch management of retail management are supposed to be realized in precinct of each branch. At the same time, the pace on institutional service line and the vertical hierarchy management of special asset management, risk management system and financial management system will also be expedited.
Enhancing risk management, improving inner control and upgrading comprehensive operational quality
The bank is now exploring to set up vertical approval system of credit authorization by appointing credit authorization officials in some branches, establishing risk management department in branches, and building periodical reporting system of credit authorization officials. In order to promote the overall quantitive level of risk management, the bank will also upgrade the construction of risk management and capital allocation system (RMCA).
Strengthening the system of asset and liability management as well as resource allocation
Through setting up the cost allocation system and the pricing system of internal capital transfer, the cost of fund, administration, capital and risk will be categorized by different cost carrier, and the income and cost of each operational unit will be calculated scientifically as well. On the base of the above systems, the allocation mechanism of business resource, administration resource and human resource will be adjusted accordingly to improve the efficiency of overall resource utility.
Intensifying development-oriented and efficiency-improved support
New branches such as Nanchang , Hefei and Wulumuqi are under the preparation of construction. In order to transit the IT developing system from pure system maintenance as well as basal and low-cost based software R&D to the high-end operational mode with information planning, strategic system structure and profit, the bank will explore new IT operational pattern, enhance the professional management capacity that stresses system management, project management, service management and quality management. Moreover, the training system will also be strengthened by unifying the standardized regulation, reshaping the training work flow and structure, carrying out the differentiated training, and starting the construction of E-learning system of the bank.