Industrial and Commercial Bank of China Limited Established in Beijing

Under State Council's Decisions and Approval from China Banking Regulatory Commission, Official Opening Conference of Industrial and Commercial Bank of China Limited(www.icbc-ltd.com) was held on Oct 28 in Beijing. As the largest commercial bank on assets-scale in China, its restructuring success not only indicated that ICBC shareholding reform ushered into a new era, but also signified that reform of State-wholly-owned commercial bank has achieved phenomenal results.

During the Conference, Leader from China Banking Regulatory Commission announced the approval of establishing "Industrial and Commercial Bank of China Limited" and grant a Peoples' Republic of China Banking License. Leader from State Administration for Industry and Commerce issued Business License to Industrial and Commercial Bank of China Limited.

Leader from Central SAFE Investments Ltd. announced the Directors and Councilors of Industrial and Commercial Bank of China Limited on behalf of Shareholders. CCP Leader announced the Management Team of Industrial and Commercial Bank of China Limited. In accordance with the regulatory approval, Mr. Jiang Jianqing was appointed as Chairman of the Board and ICBC Party Secretary, Mr.

Yang Kaisheng as President, Vice Chairman of the Board, Deputy ICBC Party Secretary and Mr. Wang Weiqiang as Council Chairman, Deputy ICBC Party Secretary.

At the Conference, Speeches were given by Mr. Zhou Xiaochuan, Director of Leadership Office in the Pilot Restructuring Reform of State-wholly-owned Commercial Bank and President of Peoples' Bank of China; Mr. Li Yong, Deputy Minister of Ministry of Finance and Mr. Jiang Jianqing, Chairman of the Board of Industrial and Commercial Bank of China Limited. Mr. Yang Kaisheng, President of Industrial and Commercial Bank of China Limited hosted the Opening Conference.

Before that, on Oct 25, Industrial and Commercial Bank of China Limited convened the Inauguration Conference. Ministry of Finance of Peoples' Republic of China and Central SAFE Investments Ltd. jointly establish Industrial and Commercial Bank of China Limited. In accordance with China Law and Regulations, Inauguration Conference passed the motions of concerning the establishment of Industrial and Commercial Bank of China Limited, Industrial and Commercial Bank of China Limited Regulation, Shareholders Meeting, Board of Directors, Rules of Council Meeting and the Directors and Councilors.

Industrial and Commercial Bank of China was renamed as Industrial and Commercial Bank of China Limited after restructuring, or ICBC in short. First Meetings of First Board of Directors and First Council were convened after the Inauguration Conference.

On April 18 this year, State officially approved ICBC Shareholding Reform Plan. ICBC felt the indomitable task. In the past 6 months, ICBC made each and every preparation in the systems, business flow, organization and personnel in respective of State Council's Decisions and regulatory requirements from Peoples' Bank of China and Banking Regulatory Commissions.

During the reform, ICBC employed international auditors to fully audit on ICBC operation and assets assessors to fully evaluate on all assets, liabilities and off-balance sheet business of the whole bank. Reform was smoothly run on accounts of the incessant efforts from all of the staffs.

In April this year, ICBC timely secured USD 15 billion injected capital in foreign exchanges from Central SAFE Investments Ltd. into accounts. Thereafter, capital structure was re-organized and corresponding accounting was completed. A plan for operating forex capital fund was instituted in order to protect and increase the value of capital fund injected from State.

ICBC then successively completed the transfer and disposal of non-performing loan and the issuing of first subordinated bonds of RMB 35 billion. Indexes of ICBC financial and assets quality were further optimized, which achieves the standard of a healthy bank. At end of September, ICBC capital adequacy ratio was 10.

26%, of which, core capital adequacy ratio reached 9.23%, rate of non-performing assets was 2.59%, rate of non-performing loan was 4.60%, balance of allocated reserves was RMB 83 billion and coverage rate of allocated reserves was 57.44%. ICBC risk control level was eminently improved.

ICBC also scored notable results in all business services while the reform is in progress. Operation was in good shape. ICBC realized an operating profit of RMB 64.4 billion in the first three quarters of 2005, RMB 6.5 billion increase on a year-to-year basis. As at end of September, balances of all RMB and foreign exchanges deposits in ICBC was RMB 5.

5859 trillion, RMB 539.9 billion increase compared to beginning of the year, RMB 162.3 billion increase on a year-to-year basis. Balance of all RMB and foreign exchanges loans was RMB 3.1401 trillion, RMB 139.7 billion increases compared to beginning of the years disregarding the factor of disposing non-performing assets under the support of the policy.

Growth of all loans was moderate, purpose was clear. Development in intermediary and emerging services was faster, with RMB 9.8 billion income coming from intermediary services, 23.9% increase on a year-to-year basis. Income structure was further enhanced.

Establishment of Industrial and Commercial Bank of China Limited marked the full restructuring of ICBC. The whole Bank's business, assets, liabilities and outlets, staff were all included in the reform and reorganized into Industrial and Commercial Bank of China Limited in all. Registered capital of Industrial and Commercial Bank of China Limited is RMB 248 billion.

Under State Council Approval, Central SAFE Investments Ltd. and Ministry of Finance hold 50% shares of Industrial and Commercial Bank of China Limited respectively and exercise the rights and obligations as the investor of Industrial and Commercial Bank of China Limited. Next step, Industrial and Commercial Bank of China Limited will continue to enhance corporate governance according to requirements of a modern corporate system and the rules of concerned Law and Regulations.

Efforts will be spent in establishing a comprehensive modern financial corporation system, in strengthening core competitiveness and in offering quality services to all customers with an aim to create the best return to shareholders. Ultimate aim is to become a modern commercial bank with sufficient capital, stringent internal control, safe operation, good service and efficient, main operating management index of medium-to-high standard among international counterparts, and strong international competitiveness.

Participants in the opening conference were: Team members of Leadership Office in the Pilot Restructuring Reform of State-wholly-owned Commercial Bank, Leaders from concerned Ministries, Industrial and Commercial Bank of China Limited First Board of Directors, Council Members and High-Management Team, Representatives from Branches, staff, retired Party leaders, other banks and customers, as well as news and media from home and abroad.

Related Site: Industrial and Commercial Bank of China Limited