Last year’s outstanding moment for ICBC was the completion of its IPO, a process that greatly advanced its operating strategy and innovative development. This entailed a simultaneous dual listing of A and H shares. Following this, the bank’s Tier 1 capital was boosted by 80.8%. In conjunction with this event, ICBC has rolled out what most market observers consider the country’s most advanced retail strategy. Fee-based business segments in particular, like wealth management, credit cards, settlement, custody and cash management, were beneficiaries of this initiative.
The result was a 31.1% increase in net profits for the year, with a reduction in the cost-income ratio from 40.1% to 36.3%, along with a 16.3% growth in assets. At the same time that the bank’s profitability reached record levels, management took steps to implement an effective risk management strategy, thanks to which the NPL ratio was cut from 4.69% to 3.79% of the portfolio.
ICBC’s rapid growth has positioned the group as one of the world’s largest banks in terms of market capitalisation. The group has established a leading position in many areas of corporate banking, personal business and treasury operations, with more than 2.4 million corporate customers. ICBC has the largest client base in China with more than 170 million personal banking customers. It is also the country’s largest electronic banking service provider. The group has a network of nearly 17,000 branches and outlets, more than 43.5% of which are located in the 50 biggest cities.
