IB Put in Glorious Performances
Date: April 20, 2011 Source: Fujian Daily
IB, a Glorious Brand in a Flourishing Age from the Western Taiwan Straits
The 11th five-year plan has come to a successful close. As the leading financial enterprise in Fujian province and as the only national listed bank headquartered in the Western Taiwan Straits economic zone, IB, under the leadership of the CPC Fujian Provincial Committee and the People's Government of Fujian Province has grasped significant development opportunities and dedicated itself to development by rooting itself in Fujian to draw on the remarkable momentum of the positive and fast economic development in Fujian during the period of the 11th five-year plan. IB has made a series of significant breakthroughs in comprehensive strength, strategic process, operation transformation, market position and serving the Western Taiwan Straits and made its way into the top 10 Chinese banks and top 100 global banks. As a result, IB has further enhanced its influence and stands out as a financial brand from the Western Taiwan Straits.
Significant Breakthrough in Comprehensive Strength
During the period of the 11th five-year plan, IB's assets and deposits exceeded RMB 1 trillion and its capital exceeded RMB 100 billion; in addition, IB's annual net profit exceeded RMB 10 billion and its non-performing loans ratio was reduced to less than 0.5%.
According to statistics, by the end of 2010, IB's total assets had reached RMB 1.849673 trillion, 3.88 times as much as at the end of 2005 and up 31.16% in compound growth as compared to five years ago. The amount of IB's assets is almost as large as that of Indonesia 's banking industry as a whole.
By the end of 2010, the balance of IB's various deposits had reached RMB 1.132767 trillion, 3.19 times as much as at the end of 2005 and up 26.10% in compound growth as compared to five years ago.
By the end of 2010,the balance of IB's various loans had reached RMB 854.339 billion, 3.52 times as much as at the end of 2005 and up 28.64% in compound growth as compared to five years ago.
Thanks to the considerable consecutive growth in profits, IB's before-tax profit had reached RMB 24.005 billion in 2010, 6.81 times as much as that of 2005 and up by 46.79% in compound growth as compared to five years ago.
In 2010, IB's after-tax profit reached RMB 18 .521 billion, 7.56 times as much as that of 2005 and up 49.81% in compound growth as compared to five years ago. The growth of IB's profit is substantially higher than that the same corresponding period. IB's annual profits exceeded the total amount of profit made by the entire banking industry in Taiwan.
By the end of 2010, IB's rate of return on net assets and total assets was 24.64% and 1.16% respectively, continuing to maintain the leading position among major banks in China.
During the past five years, IB has accumulatively realized a net profit of RMB 55.572 billion and paid RMB 11.383 billion in various taxes in total, ranking IB among some of the top enterprises in Fujian. From 2006 to 2009, IB has accumulatively realized a cash bonus of RMB 7.389 billion.
What's satisfying is that while major indicators are rising dramatically, IB has managed to realize “double reductions” in non-performing loans. The balance of IB's non-performing loans was RMB 3.616 billion, down RMB 2.031 billion as compared with the end of 2005. The ratio of non-performing loans was 0.42%, down by 1.91 % compared to the end of 2005. IB's asset quality maintained a leading level among major national banks and reached an internationally advanced level.
Major Breakthroughs in Strategic Process
IB is a national bank with branches in major cities across China. IB's dark blue logo always gives Fujianese people traveling in different parts of the country a feeling of comfort.
During the period of the 11th five-year plan, IB accelerated the expansion of its presence across China by setting up eleven tier-1 branches in Kunming, Nanchang, Hefei, Urumqi, Qingdao, Dalian, Nanning, Harbin, Shijiazhuang, Hohhot and Changchun, as well as 25 tier-2 branches and 249 branch offices.
By the end of 2010, IB had established 577 branch offices around the country and had finished its national deployment and expanded to cover many strategic regions. IB has basically achieved its goal of national expansion.
On February 5, 2007, IB was successfully listed on the market by issuing A shares on the Shanghai Stock Exchange, which was undoubtedly a glorious moment in IB's development history and marked IB's 4-tier leap from a local bank, a regional bank, a national bank, and then to a listed bank.
In the lead up to IB's listing, investors thought highly of IB and the market's response was very intense. Investors were very enthusiastic about subscribing for IB's shares. The total amount of frozen capital subscribed to exceeded RMB 116 million, an all-time high in China's capital market.
IB has been widely recognized by all circles of life and investors for its fast business development, outstanding business performance, fast-improving management level and expanding market influences.
Over the years, IB has raised RMB 47.86 billion in total by going public, allotment of shares, issuance of subordinated bonds and hybrid capital bonds, etc. By the end of 2010, the total amount of IB's capital had reached RMB 112 billion, 5.58 times as much as that of the end of 2005 and up 41.03% in compound growth as compared with five years ago. Both shareholders' equity and capital strength have been improved dramatically.
On February 9, IB made an announcement that it had been given the go-ahead to acquire Union Trust, which is symbolic of IB's major breakthroughs on the road to comprehensive operations and conglomeration.
Previously, IB had successfully set up Industrial Bank Financial Leasing Co., Ltd., a wholly-owned subsidiary of IB, which is an effective extension of its strategic development and brings about the embryonic form of comprehensive operation.
During the period of the 11th five-year plan, IB sped up the implementation of comprehensive operational strategies and achieved substantial progress, which will not only help IB improve its capabilities in comprehensive financial services and enhance its core competence, but will also facilitate the integration of financial resources in the Western Taiwan Straits and promote the construction of a regional financial center in the Western Taiwan Straits, so as to better promote the leaping development in the Western Taiwan Straits.
Major Breakthroughs in Operation Transformation
IB was the first among domestic banks to propose and implement operation transformation strategies. IB had yielded notable results in promoting its own development and serving various regions, which was another significant breakthrough made by IB during the period of the 11th five-year plan.
Significant breakthroughs come as a result of courageous transformation. During the period of the 11th five-year plan, IB further transformed its development model by seizing market opportunities, developing the retailing and funds business in leaps and bounds devoting major efforts to developing new businesses, including wealth management, investment banking, assets custody and futures settlement, all of which have begun to take shape. IB's business and income structure has very apparently and differently been optimized. In IB's business structure, the ratio of deposits to debt exceeds 82% and the ratio of loans to total assets exceeds 60%; in IB's deposit and loan structure, corporate deposits account for nearly 80% and corporate loans account for over 95%; both of which hold an absolutely dominant position.
Over the past five years, IB has distinctively been staying ahead of others in green finance, bank-to-bank platforms, brokerage of precious metal trading, and RMB market-making transactions in the domestic market.
Over the past five years, IB's income from intermediary businesses has been growing very fast. In 2010, IB's income from intermediary businesses reached RMB 5.229 billion, 13 times as much as that of 2005 and up 67.05% in compound growth as compared with five years ago.
Over the past five years, IB has been gradually developing and improving an internal risk control mechanism that's compatible with the operation transformation. For its operational development, IB's safeguards in management, technology, teams and culture have been steadily consolidated, laying a solid foundation for its own splendid transformation and leaping progress.
Major Breakthroughs in Market Position
Outstanding Performances Brings About An Outstanding Market Position and Subsequently Magnificent Achievements.
IB's effective and brilliant performance during the period of the 11th five-year plan has contributed to the steady rise of its market position.
For the first time, IB was listed among the top 10 banks in China, top 100 global banks, top 300 global listed enterprises and among the leading banks in China.
According to the latest ranking of the top 1000 world banks released by the Banker, IB ranks 97th in Tier-1 capital, up 228 places as compared with 2005, and ranks 93rd in total assets, improving by 117 places as compared with 2005.
According to the list of Top 2000 Global Listed Companies released by Forbes, IB ranks 245th , and ranks 14th among all 113 listed Chinese mainland enterprises.
For its outstanding performance in profitability, corporate governance, social welfare, energy-saving and environmental protection, IB has successfully been awarded numerous honors and awards in recent years, including the Most Profitable Asian Bank, Championship of Sustainable Banks of Asia, Best Corporate Governance of a Financial Institution, Best Corporate Citizen Award of China, Best Green Bank Award, Best of the Top 10 Listed Companies with the Most Sustainable Investment Value. IB's market recognition and reputation has been greatly enhanced.
Major Breakthroughs in Serving the Western Taiwan Straits
As the only national bank based in Fujian and the leading financial enterprise in Fujian, IB is progressing with Fujian and growing with the Western Taiwan Straits.
For many years, IB has been deeply rooted in Fujian to serve the Western Taiwan Straits by vigorously promoting the development of Fujian and the construction of the Western Taiwan Straits by providing loans and financial services for the construction and development of numerous key industries, key enterprises and key projects in our province.
IB Pingtan Branch, which officially opened for business on December 29, 2010, epitomizes IB's service of the Western Taiwan Straits.
It's understood that IB is the first financial institution to establish full strategic cooperation with the Pingtan Comprehensive Pilot District. In fact, as far back as 2008, IB had shown a lot of interest in Pingtan Island for its unique geographical location adjacent to Taiwan, and took actions. After the establishment of the branch, IB immediately set up fast channels to carry out business operations by improving work efficiency, shortening business processes, quickening the follow-up and providing high-quality services in order to help with the take-off of Pingtan Island.
IB has also provided great support and excellent services for the construction of prioritized projects in Fujian, including Wuyi New Area, Integration of Areas Inside and Outside Xiamen Island, Fuxia Railway, Expansion of Fuxia Highway, etc.
During the period of the 11th five-year plan, IB had reinforced the momentum to serve the Western Taiwan Straits by constantly improving its comprehensive strength and organized and carried out with notable results the so-called “Six Major Projects in the Hundred Billion Plan”, including Pingtan Express, Leading Partners, Corridor Bridge Project, Blooming Sesame, Substantial Benefits for the Public, Rooting in the Western Taiwan Straits, etc.
As far as IB's service projects for the public's livelihood is concerned, projects for the public's livelihood involve hundreds of thousands of households and are in need of tremendous financial support. IB gives top priority to projects for the public's livelihood and takes the opportunity of the comprehensive pilot reform for urbanization and continually promotes loan support for projects for the public's livelihood, including old city renovations, small town construction and urban infrastructure construction. In 2010 alone, IB's new credit extension loans increased by RMB 5 billion and the total amount of loans reached RMB 2.3 billion.
In the meanwhile, IB also vigorously promoted its loan supply for business incubation and the reemployment of laid-off workers, increasing the total amount of loans and the population of beneficiaries. IB also endeavored to improve the financial service level of social security, participated in the construction of provincial and municipal social security card projects and issued around 200,000 provincial-level social security cards.
The support IB constantly provides for the development of Fujian and the construction of the Western Taiwan Straits can be corroborated by data. By the end of 2010, the balance of loans in IB's branches in Fujian Province was RMB 132.3 billion. The deposit-to-loan ratio was 78.43%, 7.23% higher than the average level of the bank.
In addition, IB also exploited its unique advantages and pioneered to make substantial progress in energy-saving and emissions reduction, serving small and medium-sized enterprises and Taiwan-funded enterprises, as well as promoting economic and financial exchanges and cooperation between Fujian and Taiwan.
IB is always committed to fulfilling its corporate social responsibilities. Over the past five years, IB has made a positive contribution to the construction of a harmonious society on the Western Taiwan Straits and highlighted the social image of Fujian and enterprises in Fujian by donating over RMB 50 million for various public welfare undertakings around the country.
Over the extraordinary five years, and in the fertile soil of the Western Taiwan Straits, IB has made a lot of gains. With the acceleration of Fujian's development and the construction of the Western Taiwan Straits, IB is stepping into the hopeful period of the 12th five-year plan full of confidence and passion to accomplish greater glories and dreams.