About the Bank
– Organised and effective corporate governance. The Bank committed to high-level corporate governance and established the large-scale commercial bank corporate governance mechanism with Chinese characteristics. The Bank adhered to “Party Committee’s Core Leadership, Strategic Decisions of the Board of Directors, Supervision of the Board of Supervisors and Full Authority of Senior Management over Business Operations”. The Bank’s corporate governance covered and was extended to many areas such as the development of the Party building, strategy management, authorised operation, risk and capital management, information disclosure and social responsibilities, fully safeguarding the legitimate interests and benefits of shareholders and other stakeholders. The Bank has stable ownership structure and a diversified, specialised and internationalised Board of Directors.
– Large-scale bank with strong capabilities. As an existing national brand of finance with the longest history, Bank of Communications enjoys high recognition and reputation, known as a “century-old bank”. The total assets of the Group amounted to nearly RMB10 trillion. The Bank was honoured Fortune 500 for eleven consecutive years. The Group’s Tier-1 capital closely followed the Top 10 banks around the world, and ranked No.11 among the global Top 1000 banks by The Banker in terms of comprehensive advantages.
– Reform pioneer. The Bank has always been a pioneer of reformation in banking sector since reorganisation. The Bank is the first national joint-stock commercial bank in China, the first integrated commercial bank to carry out banking, insurance and securities businesses and the first domestic large-scale commercial bank to successfully bring in foreign capital and list overseas. In 2015, the Bank took the initiatives to be responsible for the financial pilot reform in China after the BoCom’s Plan to Strengthen Reformation approved by the State Council. The Bank emphased on the continuous strategic landscape for stronger wealth management characteristics, taken “creating shared value and providing the best service” as core, for the aim of building the first tier bank with wealth management characteristics and global competitive capabilities in the world.
– Progressive wealth management characteristics.
The Bank initiated the concept of wealth management services among the banks in the industry at an earlier period of time. The brand and characteristics of wealth management became more and more prominent by continuous development of the wealth management service system. The Bank had the licenses of trust, leasing, fund, insurance, securities and financial investment. In 2019, the Bank set up and continuously expanded the asset management subsidiary and fund management subsidiary. The Bank had the service products of wealth preservation and appreciation, financial planning and risk swap and provided the on-and-off balance sheet, debt and equity investment and online and offline full product cycle services, including those retail services of wealth management, family trust, insurance broker and asset management. The scale of personal asset under management (AUM) exceeded RMB3 trillion.
– Proactive empowerment of technology and innovation. The Bank considered technology-driven as new connation of strategy. In 2018, the Bank initiated the intelligent transformation project of the Group’s information system (“New 531” project), which taken digitization and intelligence as the core. In the early of 2020, the Bank set up the office for the information technology development, institute for Fintech innovation and financial technology company approved by the Board of Directors, which promoted the financial technology development and information system construction and developed the basis and advices technology and products. From the perspective of talent development, the Bank launched three major projects of “10,000 Fintech Talent Plan”, “Fintech Management Trainees” and “Empowerment Transformation of Existing Talents”. From the perspective of technology application, the Bank accelerated the digital transformation, combined the big data, mobile communication, artificial intelligence, intelligent customer service, and intelligent investment consultant and block chains together with banking operation, promoted the digital and intelligent services.
– Constant enhancement of global service capabilities. The Bank was committed to becoming a first-class international bank with remarkable advantages in international businesses and delivering global financial services. The Bank is one of the most internationalised domestic banks in China, and the overseas banking institution layout with “Asia-Pacific as basis and Europe and America as two wings to expand the global landscape” took shape initially. The Bank set up 22 overseas branches (subsidiary banks) and representative offices and established 68 overseas banking outlets in total (excluding the representative offices) in over 17 countries or regions. Total asset of overseas banking entities was over RMB1 trillion. The Bank and HSBC jointly launched the “1+1 Global Financial Cooperation” to assist Chinese enterprises to “go global”.
– Continuous improvement of integrated financial service. The Bank was committed to becoming an integrated financial service group focusing on banking industry to serve the real economy through multiple channels and across the regions. The Bank ranked first batch in integration among all commercial banks. Besides the commercial banking businesses, the Bank extended its business to many areas including trust, financial leasing, fund management, insurance, securities and debt-to-equity swap conversion. BoCom International, among the major subsidiaries, is the first Chinese-funded securities trader listed in Hong Kong. BoCom Leasing and BoCom International Trust arrived at the top place in the industry. The equity fund of Bank of Communications Schroder Fund Management Co., Ltd. has always ranked as first 10% of the industry in terms of absolute return during the past five years.
– “Online + Offline” integrated services. The Bank proactively responded to the digital trend and exercised the integrated impact of online and offline services. With the strategy of “online-based and mobile-first”, the Bank optimized mobile banking APP and Go Pay APP, total Monthly Active Users (MAU) was around 48.00 million. The outlet operations were undertaken the comprehensive, flexible and intelligent transformation via promotion online and offline integrated service, empowerment of Fintech and increase of AUM and MAU.
– Sound and effective comprehensive risk management. The Bank always adhered to the risk appetite with “stability, balance, compliance and innovation” as its core, formed a risk culture characterised by “law compliance, stable operation, innovation and aggressiveness and accountability for the violation of regulations”. The Bank moved forward various reform measures by establishing the risk management system of “full coverage, differentiation, specialisation, intelligence and accountability”. The Bank’s major asset-quality indicators were stable and sound. As at the end of the Reporting Period, the overdue ratio and the impaired loan ratio decreased by 0.13 percentage point and 0.02 percentage point respectively over the beginning of the year.
– Fruitful strategic cooperation between BoCom and HSBC. In 2004, the Bank entered into a strategic cooperation agreement with HSBC. Over the past decade, BoCom and HSBC had stable cooperation. HSBC was the second largest shareholder (19.03% of the total shares) of the Bank, who had two seats in the Board of Directors. Senior management and working team from both parties kept close communication and stressed on exercising each’s advantages, creating BoCom HSBC “1 + 1” service brand. Cooperation continued to expand in areas such as international businesses, cooperate businesses, personal businesses, custody businesses, achieving mutual benefits and win-win results.