-Positive Business Growth Momentum
In 2010, in the face of the “most complicated” macro-economic situation in the new century, Industrial Bank (IB) has resolutely carried out national macro-economic policies and requirements for financial supervision, and appropriately grasped the market opportunities brought about by economic adjustment and policy changes. By observing the principle of seeking development through changes and responding to the myriad of changes with consistency, various business operations of IB have continued to maintain speed, coordination, healthy development, scale, quality and efficiency, that have reached an all-time high, bringing the 5-year development plan to a successful close.
Firstly, the scale of business has maintained a relatively fast growth. By the end of 2010, the total amount of IB's assets grew by 38.85% reaching a total of RMB 1.849673tr, up RMB 517.511bn compared to the start of the year. The total amount of IB's debt grew by 38.12% to RMB 1.757678tr, up RMB 485.114bn compared to the start of year. The amount of deposits in domestic and foreign currency totaled RMB 1.132767tr, up 25.74% up RMB 231.883bn compared to the start of the year. The amount of loans in domestic and foreign currency totaled RMB 854.339bn, up 21.77% up RMB 152.741bn compared to the start of the year.
Secondly, IB has flexibly allocated assets to improve overall gains. When the scale of funding was strictly restricted, IB, as a whole, grasped market opportunities to allocate assets flexibly and devoted efforts to buying back the sale of non-credit business and financial business. As a result, IB's economic benefits have grown by a larger degree compared with the same period of the previous year. In 2010, IB's earned a net profit of RMB 18.521bn, up RMB 5.239bn, an increase of 39.44% over the same period last year. The return on total assets and net assets was 1.16% and 24.64% respectively, continuing to maintaining a leading level. With a further optimized income structure, IB has netted RMB 5.229bn in service charges and commission, up 50.16% over the same period last year. The percentage growth is higher than that of total income and profit. The cost-to-income ratio of 32.91% is down 3.78% compared to the same period last year, continuing to remain at a relatively low level in the banking industry.
Thirdly, the quality of IB's assets has remained high. IB has managed to realize “double reductions” in non-performing loans, which enabled the quality of IB's assets to stay at an internationally advanced level. By the end of 2010, the balance of IB's non-performing loans was RMB 3.616bn, down RMB 163m compared to the start of the year. The ratio of non-performing loans was 0.42%, down 0.12% compared to the start of the year. The balance of special-mentioned loans was RMB 6.65m , down RMB 829m compared to the start of the year. The provision coverage ratio was 325.51%, up 70.58% compared to the start of the year, which enhanced IB's capabilities to mitigate risks.
Fourthly, various business operations of IB have maintained a positive growth momentum. IB has made tremendous progress in investment banking, with the amount of issued debt financing instruments ranking among the top. IB has not only effectively annexed loans, but also successfully issued the first inter-bank credit risk mitigation finance product paid by investors. IB also ranked among the top in terms of the market share in the agency precious metals market and its position, quite an improvement compared to the same period last year. IB has also maintained a fast growth in sustainable finance, cross-border RMB trade settlement, supply chain finance, and small enterprises business. An all-out endeavor has been made to promote the cooperation between banks, between banks and securities companies, between banks and trust companies, between banks and financial companies, between banks and insurance companies, and between banks and leasing companies. IB has also made the first breakthrough in the insurance funds trust business. In addition, IB has also made significant breakthroughs in its overall operations. IB's acquisition of UnionTrust and its fully-owned subsidiary has been approved by the State Council, Industrial Bank Financial Leasing Co., Ltd, successfully started operations and made a profit in its first year.