IB Received “Best Shareholding Bank” and “Outstanding Innovative Bank” for Innovation-driven Development

On December 9, 2016 Annual Meeting for Financial Times and 2015-2016 Observer Financial Summit was held in Beijing in succession, and announced “2016 China Financial Institutions Gold Medal Standings” and “2015-2016 China Outstanding Finance Prize” respectively. IB received “Annual Best Shareholding Bank” and “Outstanding Innovative Bank”, exhibiting its outstanding performance and innovation in China's banking industry.

In recent years, China has entered into a painful phase of economic transformation and upgrade, the economy grows slowly, interest rate liberalization and Internet finance pick up pace, so the banking industry faces greater challenges. “In such a market environment, there’s still a batch of commercial banks delivering excellent performance.” The organization committee of 2016 Annual Meeting for Financial Times said when granting “Annual Best Shareholding Bank”.

As one of the earliest banks that put forward and promoted strategic transformation, IB has continued to speed up business restructuring and transformation and upgrade, flexibly adjusted operation policies and witnessed powerful growth momentum in recent years. Its scale of asset has ranked first among shareholding banks in China. By the end of the third quarter of 2016, the total asset of IB has reached RMB 5.82 trillion, up by 9.78% compared with the beginning of the year and ranking first among shareholding banks; total net profit has ran up to RMB 43.982 billion with a YOY growth of 6.70% and total ROA and weighted net ROA were respectively 0.80% and 14.11%, remaining excellent in the industry; cost-income ratio was 20.49%, ranking second among Top 50 World Banks; it was also listed into “2016 Fortune Global 500 with Highest Profit”.

Why can IB maintain such remarkable strength among competitions in the industry? The organization committee of 2015-2016 Observer Financial Summit summarized IB’s strategy as adhering to differentiated development.

Differentiated and characteristic development comes from IB’s market-oriented and innovative features.

Driven by innovation, IB vigorously pushes forward light asset structure, strengthens intensive capital operation, guides business institutions at all levels to give priority to asset business with low risk weight and small capital occupation including personal loan, treasury bond, financial bond, local governments’ debts, horizontal asset and trust business with adequate pledge, and reduces proportion of risk asset. As of the end of September 2016, IB’s risk-weighted assets only accounted for 62% of the total, remaining low in the industry.

It takes the lead in developing comprehensive finance and continues to expand sources for business and income. After years of development, IB holds multifarious licenses including bank, trust, financial lease, fund, futures, consumer finance, research and consulting and digital finance. It becomes a bank-based modern comprehensive financial service group with extraordinary abilities for comprehensive financial service. And it made prominent achievements in comprehensive operation and group collaborative linkage; its subsidiaries have soared up with increasing industrial position and profit contribution to the group. By the end of September, the YOY growth of non-interest income of the group has exceeded 40%, net profit of non-banking subsidiaries has occupied more than 5% of the total and IB Trust, IB Financial Leasing and other subsidiaries are among the best in the industry.

Operation strategy of “big investment bank, big capital management and big wealth” is steadily pushed forward and operation transformation plays a prominent role as a “new engine”. In terms of big investment bank, by the end of September 2016, total financing of all types of investment bank has exceeded RMB 600 billion; scale of debt financing tools to non-financial enterprises was RMB 317.3 billion with a YOY growth of 22.9% and a market share of 8.27%; scale and number of issuance have ranked first among shareholding banks. In terms of big capital management and big wealth, by the end of September, scale of asset management business has reached nearly RMB 2.8 trillion, of which scale of asset under bank management was close to RMB 1.4 trillion, ranking top among banks of the same type; revenue of intermediate business was RMB 8.387 billion, occupying over 30% of net revenue of all intermediate businesses and ranking first for five consecutive quarters among national banks with regard to capacity of wealth management; scale of custody asset has reached RMB 8.30 trillion, up by 15.03% compared with the beginning of the year and ranking top among banks of the same type.

It is worth mentioning that, while developing non-financial enterprise debt financing tool, IB has a keen sense of market and produces innovative products. In June 2016, it issued 2016 trust asset backed notes (Stage I) of Jointown Pharmaceutical Group Co., Ltd., the first circular purchase structural asset backed notes of non-financial enterprises in China, and issued the first green finance bond in China. At present it has completed three-stage green finance bonds of RMB 50 billion, and innovatively introduced “green investor” in book building of “16 Dun’an GN002”, a new highlight among interbank green debt financing tools. In addition, innovative financing businesses, such as direct financing tool for wealth management, asset securitization, M& A loan, financial consultancy and industrial fund, also thrive.

As an exploiter of China’s green finance market, IB constantly leads innovations in green financial products and services. In 2016, IB issued green finance bonds for the first time, registered and launched China’s first green private placement note, invested in China’s first green ABS of non-listed company, issued green wealth management products of green environmental protection projects and green bonds designed for individual investors, and vigorously explored and made innovation in emerging business areas, such as green credit asset securitization, PPP financing, industrial fund, green consumption and credit. As of the end of October, IB has accumulatively granted green finance of over RMB one trillion for over 6700 enterprises, built up a perfect green financial product and service system, and transformed itself into a first-class green finance group from a first-class green bank.