Industrial Bank (IB) has been honored as “Bank of The Year in China (2023)” by the esteemed British magazine, The Banker, in London on November 30th. This prestigious global banking accolade marks the second time IB has received this award, following its first win in 2021, further cementing its reputation in the global banking industry.
The judging panel was particularly impressed by IB’s accelerated efforts in developing its “Five New Tracks” and launching its “Top Five Online Brands.” These initiatives have significantly contributed to sustainable development. The panel also highly commended IB’s expedited transformation efforts, including upgrading its core business systems, adopting advanced credit management models like “Technology Flow,” and providing superior services to customers. Particularly noteworthy is IB’s commitment to becoming a recognized “Green Banking”, significantly increasing its green credit investments and expanding its team of green finance professionals.
In 2023, facing a complex and challenging external environment, IB maintained a stable yet progressive approach, steadfastly adhering to its strategic focus. The bank continued to strengthen its core business, ventured into new arenas, and polished its identity as a Green Banking, Wealth Bank, and Investment Bank, as part of its “Three Pillars”. Accelerating its digital transformation, IB has played a vital role in supporting economic recovery and development, leading to steady growth across all business sectors and a gradual enhancement in its market position. By the end of September, IB’s total assets approached 10 trillion, with revenue and net profit attributable to the parent company shareholders reaching 161.296 billion and 64.965 billion yuan respectively. The non-performing loan (NPL) ratio decreased by 0.02 percentage points from the end of the previous year to 1.07%, indicating a stable asset quality; In The Banker magazine’s “Top 1000 World Banks 2023” rankings, IB was ranked 17th based on Tier 1 capital. Moreover, its MSCI ESG rating advanced from ‘A’ to ‘AA,’ making it the only bank to receive the highest rating in the domestic banking industry for five consecutive years.
At the recent Central Financial Work Conference, a clear directive was issued to focus on “Five Major Areas” in finance: technology finance, green finance, inclusive finance, pension finance, and digital finance. Aligning with the economic development trend towards a new tripartite cycle of “technology-industry-finance,” Industrial Bank (IB) has seamlessly integrated these five key areas with its own strategic focus on “Five New Tracks.” This synergy is driving a restructuring of the bank’s balance sheet and shaping new drivers for high-quality development. In the first three quarters, IB’s “Five New Tracks” maintained strong momentum, with inclusive small and micro (SMEs) loans, technology innovation loans, energy finance financing, auto finance financing, and industrial park finance financing all recording double-digit growth, reaching balances of 477.3 billion, 432.3 billion, 733.8 billion, 389.6 billion, and 2.01 trillion yuan, respectively.
Keeping pace with the digital advancements in Fujian and across China, IB has accelerated its digital transformation. The bank is actively promoting a shift in philosophy, systemic reform, and innovative models while increasing investment in technological resources. Advancing its “10,000 Technology Talents Plan,” the annual technology investment has exceeded 8 billion yuan, with nearly 7,000 tech professionals employed. On this foundation, IB has strengthened its digital operations, launching its “Top Five Online Brands” and establishing a new digital operations department. This initiative aims to build platforms, develop scenarios, and expand ecosystems, striving to become the leading ecosystem-enabling bank. As of the end of September, the monthly average users (MAU) of IB Life, Money Manager, and IB Butler have grown by 37.84%, 13.94%, and 15.51% respectively compared to the end of the previous year. The balance of financing for IB Inclusive Finance exceeded 60 billion yuan, and the investment scale of institutional investors on the IB platform for Integrated Banking exceeded 300 billion yuan.
In its digital transformation, IB considers data as a key production element. Addressing the unique characteristics of science and technology enterprises, such as limited assets for collateral, long R&D cycles, and slow revenue and profit generation, IB innovatively treats data as the “fourth financial statement” of a company. The bank has introduced the “Technology Flow” evaluation system, which assesses enterprises from the perspective of their technological innovation capabilities. This comprehensive profiling of tech companies enables IB to offer precise financial services, fully unleashing the productive power of data. By the end of September, the bank’s “Technology Flow” credit evaluation system had processed financing requests exceeding 2 trillion yuan, with nearly 600 billion yuan in various types of financing already disbursed.
Focusing on major economic and social strategies such as promoting green development, serving common prosperity, and fostering technological innovation, Industrial Bank (IB) has been dedicated to enhancing its identity as a Green Banking, Wealth Bank, and Investment Bank, the “Three Pillars.” This commitment is part of its ongoing effort to strengthen its distinctive advantages and core competitiveness. In the realm of Green Banking, as of September, IB’s green finance balance reached 1.86 trillion yuan, a 250.1 billion yuan increase from the end of the previous year. In the carbon reduction sector, green finance financing amounted to 1.04 trillion yuan, accounting for 56% of the total green finance, a 7% increase from the previous year. Regarding Wealth Bank, the average daily balance of retail AUM (Asset Under Management) stood at 2.93 trillion yuan, with a net increase of 193.4 billion yuan. Among these, the proportion of agency business rose to 24.52%. The scale of wealth management reached 2.1 trillion yuan, maintaining the second position in the overall market. For Investment Bank, in the first three quarters, IB underwrote 527.655 billion yuan in non-gold bonds, leading the industry. The bank finalized mergers and acquisitions financing and syndicated loans amounting to 179.834 billion yuan, and asset turnover of 183.088 billion yuan, maintaining a leading market position. Additionally, IB executed six market-wide REITs deals, participating in issuances totaling 7.259 billion yuan and underwriting 3.368 billion yuan, the highest in the industry.
The “Bank of the Year” awards hosted annually by the British magazine The Banker are among the most prestigious in the global banking sector, often likened to the “Oscars” of the banking world. Each year, The Banker receives applications from over a thousand banks worldwide. The selection process involves a comprehensive evaluation of financial data, strategic initiatives, technological upgrades, and innovations in products and services, recognizing significant achievements in these areas.