Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
China's ICBC world's most profitable bank
Adjust font size:

Interim results posted by the Industrial and Commercial Bank of China (ICBC) yesterday showed it had become the world's most profitable bank, with net profits for the first six months of 2008 amounting to 64.879 billion yuan (US$9.42 billion), up nearly 57 percent from the same period last year.

ICBC (SSE: 601398; SEHK: 1398) attributed its strong performance to rapid growth in its fee and commission income, up 48.03 percent to 24.48 billion yuan. The bank also called attention to its increasing involvement in the domestic wealth management market. In the first half of 2008, ICBC said its sales of wealth management products were up 123 percent over the same period in 2007. The wealth management business is rapidly expanding in China as increasing numbers of fortunes are made from the country's booming economy.

The bank's concentration on the Chinese domestic market has means it has relatively minor exposure to the US sub-prime crisis. ICBC wrote off US$702 million on sub-prime related investments in the first half of 2008. This contrasts with total write-downs of sub-prime assets of US$55 billion by Citigroup and US $44 billion by UBS since the crisis began.

In another milestone ICBC is now the world's largest bank in terms of market capitalization. Chinese banks now occupy 3 of the top 5 spots, with ICBC being joined by China Construction Bank and Bank of China.

It is all a far cry from the not-so-distant past when China's largely state-owned banking sector was regularly lectured by Western financial commentators on its non-performing loans to state owned corporations. It seems that, for now at least, non-performing assets have gone west.

(China.org.cn by John Sexton August 22, 2008)

Tools: Save | Print | E-mail | Most Read
Pet Name
China Archives
Related >>
- ICBC gets nod for New York branch
- ICBC tops China banks for competitiveness
- ICBC's online clients increase sharply in first half year
- ICBC launches nation's first wine trust
- Bank expects inflation to peak in 2009
- ICBC sees H1 profit to rise over 50%
Most Viewed >>
- SOEs rise to China's reformation challenge
- Good signs for the economy
- Tsingtao beer joins NBA
- China doesn't foresee an Olympic hangover
- CREA denies housing boost report
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?