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Industrial Bank Ranked No. 36 in the List of World Banks, Making Its Presence in the Top 3 in Terms of Cost/Income Ratio

On June 30, the British magazine, The Banker, an authoritative international media, released the latest “2015 Top 1000 World Banks”. Industrial Bank (IB) moves up significantly, ranking No. 36 in terms of Tier 1 capital, up 13 positions over the previous year. While making its presence among the top 50 world banks stably, IB climbed into the top 3 with regard to “cost/income ratio” index with its outstanding cost control strength and business efficiency.

Boasting a database of more than 4,000 banks around the world, the British magazine, The Banker, makes in-depth analysis and ranks banks annually by taking Tier 1 capital as an important index for assessing the business development strength and risk tolerance of commercial banks and giving overall consideration to the core capital, asset scale, profitability and performance in institutional competition of banks in different countries and regions. The “Ranking of Top 1000 World Banks” is regarded as an authoritative list for evaluating the overall strength of banks around the globe.

In 2014, confronted with the marketization of interest rates and business environment where financial disintermediation witnessed accelerated progress, internet finance saw great prosperity and the economy entered into the New Normal state, IB continued its market-oriented and differentiated business strategy, speeded up the integrated, group-based and globalized strategic layout and transformation progress, and witnessed sturdy business development and constantly increasing capital strength and overall strength. By the end of 2014, the total assets of the bank hit RMB 4.4 trillion, up by 19.79% YoY; Tier 1 capital totaled RMB 259.442 billion, up by 29% YoY; the registered operating income amounted to RMB 124.898 billion, up by 14.28% YoY; and the net profits reached RMB 47.138 billion, up by 14.38% YoY. Moreover, it has grown into a modern financial service group focusing on the banking and covering trust, lease, fund, futures, assets management, and consumer finance, becoming one of the commercial banks holding the greatest number of financial licenses at home. 

In particular, the bank, on one hand, keeps steady growth in its business scale, improves its asset-liability structure, and extends the profit sources through multiple channels to boost the steady growth of operating income. On the other hand, IB lays equal stress on “control of total quantity and structural adjustment”, fully leverages the potential of existing resources, guarantees investment of resources in key and strategic fundamental businesses and infrastructure construction, and strictly controls the increase of fixed cost characterized by relative rigidity such as site and depreciation, achieving outstanding cost control efficiency. The cost/income ratio of the bank was 23.78% in 2014, down by 2.93% YoY, remaining at the first-rate level among domestic banks.

Tier 1 capital is not only an important index for assessing the business development strength and risk tolerance of commercial banks in an all-round way, but also an important guarantee for sustainable development. In terms of Tier 1 capital, there are a total 117 banks from the Chinese banking industry making their presence in the Top 1000 World Banks, 7 more than the figure in the previous year, which fully showcases the favorable situation that Chinese banks witness constant enhancement in capital strength and continued robust development potential.

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