Industrial and Commercial Bank of China Limited (ICBC)
Type	Public company SEHK: 1398, SSE: 601398
Founded	1984
Headquarters	Xicheng District, Beijing, China
Key people	Jiang Jianqing, Chairman & Executive Director Yang Kaisheng, Vice Chairman, Executive Director and President
Industry	Finance
Products	Financial services
Revenue	RMB 337.858 billion (2007)
Operating income	RMB 69.258 billion (2007)
Net income	RMB 73.704 billion (2007)
Employees	361,623 (2005)
Website	http://www.icbc.com.cn

Industrial and Commercial Bank of China (ICBC) (Simplified Chinese: 中国工商银行; Traditional Chinese: 中國工商銀行; Pinyin: Zhōngguó Gōngshāng Yínháng, more commonly just 工行 Gōngháng) is the largest of China's Big Four state-owned commercial banks, the other 3 banks being the Bank of China, Agricultural Bank of China, and China Construction Bank, and one of the world's top 10 banks by assets. Image File history File links Industrial_and_Commercial_Bank_of_China_logo. ... A public company usually refers to a company which is permitted to offer its securities (stock, bonds, etc. ... The Hong Kong Stock Exchange (Traditional Chinese: , also 港交所; abbreviated as HKEX ; SEHK: 0388) is the stock exchange of Hong Kong. ... The Shanghai Stock Exchange is a stock exchange based in Shanghai, China. ... Year 1984 (MCMLXXXIV) was a leap year starting on Sunday (link displays the 1984 Gregorian calendar). ... Beijings Xicheng District/Precinct (Simplified Chinese: 西城区) (West City District) spans 32 square kilometres, making it the largest portion of the old city (inside the 2nd Ring Road), and has 790,000 inhabitants. ... Beijing (Chinese: 北京; pinyin: BÄ›ijÄ«ng; IPA: ;  ), a metropolis in northern China, is the capital of the Peoples Republic of China (PRC). ... Image File history File links Flag_of_the_Peoples_Republic_of_China. ... A Chairman is the presiding officer of a meeting, organization, committee, or other deliberative body. ... Executive director is a title given to a person who is the head of an executive branch of an organization or company. ... Executive director is a title given to a person who is the head of an executive branch of an organization or company. ... Most of this article is about heads of state. ... Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. ... Financial services is a term used to refer to the services provided by the finance industry. ... Revenue is a U.S. business term for the amount of money that a company earns from its activities in a given period, mostly from sales of products and/or services to customers. ... Image File history File links No higher resolution available. ... The renminbi (Traditional Chinese: 人民幣, Simplified Chinese: 人民币, literally means peoples currency) is the official currency of the Peoples Republic of China. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... Earnings before interest and taxes (EBIT), also known as operating income and operating profit, is a term used to describe a companys earnings. ... Image File history File links No higher resolution available. ... The renminbi (Traditional Chinese: 人民幣, Simplified Chinese: 人民币, literally means peoples currency) is the official currency of the Peoples Republic of China. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... Net income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. ... Image File history File links No higher resolution available. ... The renminbi (Traditional Chinese: 人民幣, Simplified Chinese: 人民币, literally means peoples currency) is the official currency of the Peoples Republic of China. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... For the album by the Kaiser Chiefs see Employment (album) Employment is a contract between two parties, one being the employer and the other being the employee. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... A website (alternatively, Web site) is a collection of Web pages, images, videos and other digital assets that is hosted on a Web server, usually accessible via the Internet or a LAN. A Web page is a document, typically written in HTML, that is almost always accessible via HTTP, a... This article or section does not adequately cite its references or sources. ... Traditional Chinese (Traditional Chinese: 正體字/繁體字, Simplified Chinese: 正体字/繁体字) refers to one of two standard sets of printed Chinese characters. ... Hanyu Pinyin (Simplified Chinese: ; Traditional Chinese: ; pinyin: ), commonly called Pinyin, is the most common variant of Standard Mandarin romanization system in use. ... Big Four is the name given to the four biggest banks in a certain area: In England & Wales as a whole. ... Bank of China Limited (BOC) SEHK: 3988 (Simplified Chinese: ; Traditional Chinese: ; pinyin: ; often abbreviated as 中行) is one of the big four state-owned commercial banks of the Peoples Republic of China. ... The Agricultural Bank of China ( 中国农业银行, pinyin: Zhōngguó Nóngyè Yínháng ) is one of the big four banks in the Peoples Republic of China. ... The China Construction Bank (CCB) SEHK: 0939 (Simplified Chinese: , Traditional Chinese: ; pinyin: Zhōngguó Jiànshè Yínháng) is one of the big four banks in the Peoples Republic of China. ... In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ...

It was founded as a limited company on January 1, 1984. As of 30 June 2006, it had assets of RMB 7,055 billion (US$893 billion), 18,764 outlets including 106 overseas branches and 1,165 agents globally.^[1] It is currently the second largest bank in the world by market value, only after Citibank ^[2]. is the 1st day of the year in the Gregorian calendar. ... Year 1984 (MCMLXXXIV) was a leap year starting on Sunday (link displays the 1984 Gregorian calendar). ... June 30 is the 181st day of the year (182nd in leap years) in the Gregorian calendar. ... For the Manfred Mann album, see 2006 (album). ... The renminbi (Traditional Chinese: 人民幣, Simplified Chinese: 人民币, literally means peoples currency) is the official currency of the Peoples Republic of China. ... Citibank is a major international bank, founded in 1812 as the City Bank of New York. ...

Events in 2005

The bank's Hong Kong operations are listed under the name ICBC Asia. It has purchased the Hong Kong subsidiary of Fortis Bank and rebranded it under its own name on 10 October 2005. ICBC (Asia), formally Industrial and Commercial Bank of China (Asia) Limited and colloquially just ICBC Asia, is the Hong Kong unit of Industrial and Commercial Bank of China. ... Fortis is a large banking, insurance, and investment management company. ... October 10 is the 283rd day of the year (284th in leap years). ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ...

Events in 2006

In the runup to its planned initial public offering, on 28th April 2006, three "strategic investors" injected $3.7 billion into ICBC : An initial public offering (IPO) is the first sale of a corporations common shares to investors on a public stock exchange. ... (Redirected from 28th April) April 28 is the 118th day of the year (119th in leap years) in the Gregorian Calendar, with 247 days remaining. ... For the Manfred Mann album, see 2006 (album). ...

• Goldman Sachs purchased a 5.75% stake for $2.6 billion, the largest sum Goldman Sachs has ever invested [2].
• Dresdner Bank (a wholly owned subsidiary of Allianz) invested $1 billion [3].
• American Express invested $200 million [4].

Goldman Sachs offices at the Fraumünsterplatz in Zürich (the light-colored building on the left) The Goldman Sachs Group, Inc. ... Goldman Sachs offices at the Fraumünsterplatz in Zürich (the light-colored building on the left) The Goldman Sachs Group, Inc. ... The 1978 Silver Tower houses part of the head office of the Dresdner bank. ...   SE[1], (ISIN: DE0008404005; IPA pronunciation: [alliˈanʦ], and formerly AG) is a large financial service provider headquartered in Munich, Germany. ... American Express (NYSE: AXP), sometimes known as AmEx or Amex, is a diversified global financial services company, headquartered in New York City. ...

World's Largest IPO

ICBC was simultaneously listed on both the Hong Kong Stock Exchange and Shanghai Stock Exchange on 27 October 2006. It was the world's largest IPO to date, surpassing the previous record US$18.4 billion IPO by Japan's NTT DoCoMo in 1998.^[5] China’s largest commercial bank is also the first company to debut simultaneously on both the Hong Kong and Shanghai stock exchanges. The Hong Kong Stock Exchange (Traditional Chinese: , also 港交所; abbreviated as HKEX ; SEHK: 0388) is the stock exchange of Hong Kong. ... The Shanghai Stock Exchange is a stock exchange based in Shanghai, China. ... is the 300th day of the year (301st in leap years) in the Gregorian calendar. ... For the Manfred Mann album, see 2006 (album). ... An initial public offering (IPO) is the first sale of a corporations common shares to investors on a public stock exchange. ... NTT DoCoMo, Inc. ... Year 1998 (MCMXCVIII) was a common year starting on Thursday (link will display full 1998 Gregorian calendar). ...

ICBC raised at least US$14 billion in Hong Kong (H-shares) and another US$5.1 billion in Shanghai (A-shares). Due to heavy subscriptions, the greenshoe (i.e. over-allotment) placements were exercised and ICBC's take rose to US$21.9 billion (17% of ICBC's market value before the IPO), divided in US$16 billion in Hong Kong and US$5.9 billion in Shanghai. Following the global offering, the free float of shares was 22.14% of the market capitalization. Shanghai (Chinese: ; pinyin:  ; Wu (Long-short): ZÃ¥nhae; Shanghainese (IPA): ), situated on the banks of the Yangtze River Delta in East China, is the largest city of the Peoples Republic of China and the ninth largest in the world. ... A greenshoe, also known by its legal title as an over-allotment option (the only way it can be referred to in a prospectus), gives underwriters the right to sell additional shares in a registered securities offering if demand for the securities is in excess of the original amount offered. ... The free float of a public company is the proportion of shares available for purchase in the market by investors. ... Market capitalization, often abbreviated to market cap, is a measurement of corporate size that refers to the current stock price times the number of outstanding shares. ...

At the end of its first day of trading, the bank’s shares closed up almost 15% at HK$3.52 in Hong Kong, compared with the listing price of HK$3.07, which was set at the top of the indicative range due to the strong demand. According to Bloomberg, ICBC’s market capitalisation at the end of trade based on its Hong Kong shares was US$156.3 billion, making it the world’s fifth largest bank, just behind JPMorgan Chase. Meanwhile, ICBC’s Shanghai-listed A-shares recorded more modest gains and ended up 5.1% from the offering price of RMB 3.12. Bloomberg L.P. is a financial software service company founded by current New York City mayor Michael Bloomberg with the help of Thomas Secunda in 1981. ... Market capitalization, often abbreviated to market cap, mkt. ... JPMorgan Chase (NYSE: JPM TYO: 8634 ) is one of the oldest financial services firms in the world. ...

Basic Figures

ICBC has 2.5 million corporate customers and 150 million individual customers [6]. In 2005, net profit was up 12.4% to RMB 33.7 billion, and the total loan balance was RMB 3,289.5 billion. Total liabilities are RMB 6,196.2 billion, up 11.2%. Delinquent or non-performing loans (NPL) total RMB 154.4 billion, a significant reduction although the figures are widely regarded as being somewhat higher than officially stated. It has an NPL ratio of 4.69% and a capital adequacy ratio of 9.89%. A non-performing loan is a loan that is in default or close to being in default. ... This article or section is in need of attention from an expert on the subject. ...

Loans by Industry (2005)

In millions of Chinese RMB (Yuan):

• Manufacturing: 662,376, 20.1% (28.7% in 2004)
• Transportation, storage, postage & telecommunications: 367,371, 11.2% (10.2% in 2004)
• Power, gas and water: 281,179, 8.6% (7.0% in 2004)
• Retail and wholesale, catering: 265,906, 8.1% (6.9% in 2004)
• Property development: 194,024, 5.9%, (5.6% in 2004)
• Social service organization: 103,070, 3.1%, (3.2% in 2004)
• Construction: 89,666, 2.7%, (2.1% in 2004)
• Other Industries: 313,804, 9.5%, (12.1% in 2004)
• Discounted bills: 392,717, 11.9%, (8.4% in 2004)
• Personal Loans: 515,042, 15.7%, (13.1% in 2004)
• Overseas Business:104,398, 3.2%, (2.7% in 2004)

Total: 3,289,553

Loan Collateral

• Secured by Mortgages: 34.1%
• Secured by other collateral: 22.1%
• Guaranteed loans: 23.3%
• Unsecured loans: 20.5%

Non-performing Loans

At the end of 2004, 19.1% of ICBC's portfolio consisted of non-performing loans.^[7] In order to clean up ICBC's balance sheet and prepare it for overseas listing, the Chinese government orchestrated a series of capital injections, asset transfers, and government-subsidised bad loan disposals that eventually cost more than US$162 billion.^[8] This included an approval for a cash injection of US$15 billion (financed from China's massive foreign exchange reserves) on April 28, 2005.^[9] The Beijing-based state company, China Huarong, helped ICBC dispose of its bad loans. As the 2005 annual report records, just under 5% of loans are classified as non-performing, in comparison with the majority of western banks who have lower NPL ratios (US commercial banks around 1%) [10]. A non-performing loan is a loan that is in default or close to being in default. ... Foreign exchange reserves are the foreign currency deposits held by central banks and monetary authorities. ... April 28 is the 118th day of the year (119th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... Beijing (Chinese: 北京; pinyin: BÄ›ijÄ«ng; IPA: ;  ), a metropolis in northern China, is the capital of the Peoples Republic of China (PRC). ...

Legal Issues

• February, 2005: A Hunan branch manager was convicted of bribery and imprisoned for 19 years.
• April, 2006: An assistant branch manager in Guangdong found guilty on similar charges and jailed for 12 years.

External links

• (English) 2005 Annual Report
• (Chinese) Industrial and Commercial Bank of China
• (English) Industrial and Commercial Bank of China
• (English) ICBC news

References