Notable Achievements of Transnational Operation of ICBC

ICBC has made notable achievements in its transnational operation. According to the statistics of latest data, ICBC has established 100 branches and share-holding banks in the main financial centers throughout the world, and has established the relationship of correspondent bank with 1037 banks in 106 countries and regions.

The news spokesman of ICBC told the reporter that with fast development of economic globalization, and continuously deepening of financial internationalization, the mutual dependence between Chinese and world economy is also increasing, and more and more Chinese enterprises are going to the world arena.

As the largest commercial bank in China, ICBC always takes realizing internationalization as the strategic target of its development, so it actively involves itself into the tide of financial globalization at all times, and devotes itself to building a modern financial enterprise with international competitiveness, which ultimately results in the development with leaps and bounds of its strategy of transnational operation.

According to the introduction of the spokesman, at present the layout of overseas organizations of the bank has taken on certain scale, with overseas assets steadily growing and operating benefit gradually increasing. Relevant data shows that by the end of June of 2005, general assets of ICBC overseas branches has reached USD20.9 billion, accounting for 30% of total foreign exchange assets of ICBC. In the first half year of 2005, the book profit (profit after provisioning) of ICBC overseas branches reached USD88.9 million, up by 27.5% year on year.

While keeping steady growth of its assets, the assets quality of ICBC overseas branches is also gradually improving. According to the statistics of five-category asset classification approach, by the end of June of 2005, the ratio of non-performing loans of ICBC overseas branches was only 0.87%, with the balance of bad debt reserves being USD183.18 million and Provisioning Coverage Ratio up to 154%.

Besides, ICBC also actively promotes the transformation of overseas business, continuously adjusts and optimizes business structure, so as to further increase its operating benefit. While keeping its existing dominant businesses, ICBC accelerates the development of its intermediary business and retail business. Only in the first half year of 2005, the overseas branches of ICBC realized its income from intermediary business of USD37.97 million, accounting for 22.1% of net revenue.

From the beginning of this year, ICBC has accelerated its scientific construction of overseas branches under the guide of scientific development view. On the basis of completed overseas data center, ICBC continues to increase the investment and resources upon scientific R&D of overseas branches, continuously improves overseas operating and management means, and perfects overseas business and management system.

Meanwhile, ICBC devotes itself to establishing and improving internal control system of domestic and overseas branches, strengthens the management and supervision upon various operating risks of overseas branches, and gradually brings overseas business into unified and standard management of the whole bank.

Under the support of powerful scientific and technological forces, ICBC has successively developed the businesses of "Euro-China Link" and "China-Korea Deposit and Remittance Link", etc., and by taking the advantage of inside and outside linkage, it has created the brand of "Global Swift Remittance", which expands the influence of ICBC in international market and brings new profit-making opportunities.

The spokesman also said that ICBC will further improve its global network layout in the near future, fully exerts the advantage of inside and outside linkage, and carry forward the reform of domestic and overseas management systems. On the basis of building a unified technical platform both at home and abroad, ICBC will quicken product innovation and business innovation, and push the operating management to move towards the objective of internationally leading bank.

By taking the advantage of the reform of stock system, the transnational operation of ICBC will enter a totally new development phase.