This content is from: Innovation

Financing China’s Growth and Creating Shareholder Value

An Institutional Investor Sponsored Report

China’s financial institutions have had to adapt to a new order. China Construction Bank provides exceptional shareholder value through a commitment to China’s economic development, serving its clients globally, and offering its innovative financial solutions by app, online, and the traditional way.

The high velocity of growth in China has slowed in the last two years, and China’s economy has entered a new phase. Marked by more thoughtful development and an emphasis on sustainability, China Construction Bank (CCB) has taken a leadership role—nationally and around the world—by deepening reform and accelerating transformation to become a bank that provides comprehensive and multifunctional services, seamless operations and leadership in innovation. The result is a competitive global financial leader that is constructing China’s new economy while creating tremendous value for its stakeholders.

Amid complex economic conditions in domestic and overseas markets, fierce competition across sectors, CCB performed exceptionally in 2014. Return on equity was impressive—nearly 20 percent. Market capitalization at yearend 2014 reached $207.9 billion, ranking it fourth among all listed banks in the world. The Hong Kong exchange market is performing outstandingly and a number of Chinese corporations have overtaken their global competitors in terms of market capitalization. CCB, China’s second largest lender by assets, has risen by a fifth in the past month, giving it a market capitalization of $248 billion, ranking third among global lenders. According to CCB’s 2014 annual results, it’s total assets had risen by 9 percent, to RMB 16.74 trillion (about US$2.7 trillion), over the previous year. Revenue grew by 12 percent to RMB 570.47 billion, and net profits had grown by 6 percent, reaching RMB 228.25 billion. Risk management efforts have been successful, with a total capital adequacy ratio of nearly 15 percent and a provision coverage ratio of more than 222 percent. Nonperforming loans represent just 1 percent. With such robust results, the board recommended a cash dividend of RMB 0.301 per share.

Last year also saw the launch of CCB’s Internet strategy, comprised of three channels, including online banking, mobile banking, and WeChat banking, that accounted for 88 percent of total transaction volume. The number of online banking customers reached 182 million, up nearly 20 percent; mobile banking, 147 million, up more than 25 percent; and the number of WeChat banking customers surged to 14 million. CCB’s two major e-commerce platforms, E.ccb.com and Joy Life, saw strong growth as well. CCB continued to enhance its internet finance product lines, covering payment, investment and wealth management, as well as credit financing, with the launch of e-Loan Platform, Express Loan and Fast Loan.



Global Expansion
International growth has been a significant initiative also. CCB launched four institutions in Macau, New Zealand, Toronto and Brisbane. In February 2015, London Branch commenced the business. At present, CCB has 22 tier-one operating institutions in overseas markets and has established correspondent banking relationships with 1,470 institutions in 138 countries and regions.

CCB was founded to support China’s economic development programs, and it continues its integral role. CCB actively participated in the implementation of national development strategies, including the Beijing-Tianjin-Hebei integration initiative and the New Silk Road Economic Belt. The bank maintains its No. 1 position in residential finance, accounting to more than 50 percent market share. CCB also expanded its support of small and micro businesses by adapting big data information technology. The bank also expanded its rural financial services by increasing the number of outlets, strengthening cross-sector cooperation, and through mobile banking, new ATMs and sales terminals.

Non-bank businesses continued to grow in 2014 as well. CCB has been China’s largest bond underwriter for the past four years. Its custody business increased by 38 percent, and it ranked first in newly launched mutual funds. It also led the industry in corporate annuity and pension products as well as credit cards.

CCB’s prudent management, successful innovation and culture of social responsibility have resulted in more than 100 major industry awards in China and around the world.


 

Related Content