About the Bank
– Organized and effective corporate governance system. The Bank committed to high-level corporate governance and established the large-scale commercial bank corporate governance mechanism with Chinese characteristics. The Bank adheres to “Party Committee’s core leadership, strategic decisions of the Board of Directors, supervision of the Board of Supervisors and full authority to Senior Management over business operations”. The Bank’s corporate governance covered and extended to many areas such as the development of the Party building, strategy management, authorized 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, specialized and internationalized Board of Directors, whose members consist of experienced domestic and abroad bankers, well-known experts and scholars from different fields, accountants and lawyers, etc.
– Profound history background and strong comprehensive capabilities. The year of 2018 was the 110th anniversary of the establishment of the Bank. 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 and net profits of the Group exceeded RMB9 trillion and RMB70.0 billion, respectively. The Bank was honored “Top 500 Global Companies” for the ten consecutive years by FORTUNE. The Group’s Tier-1 capital ranked no.11 among the global top 1,000 banks rated by The Banker, with strong comprehensive capabilities.
– Large-scale bank with spirit of reformation. The Bank has always been a pioneer of reformation in banking sector since reorganization, which provides the advantage in reformation and innovation. 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 once again after the BoCom’s plan to strengthen Reformation approved by the State Council. In 2018, the Bank focused on three key reforms including human resources reform, the “New 531” project and credit risk management, resulting in the positive effects of the reforms. The Bank adhered to develop under “BoCom Strategy” with new interpretation in 2018 and proposed the “186” strategic landscape.
– Constant enhancement of global service ability. The Bank was committed to becoming a first-class international bank with remarkable advantages in international businesses and delivering of global financial services. The Bank is one the most internationalized domestic branches in China. The overseas banking institution “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 banking entities and established 66 overseas banking outlets in total (excluding the representative offices) in over 16 countries and regions. Total asset of overseas banking entities was over RMB1 trillion. At the same time, the Bank built agency bank relationships with 1,159 banks among 134 countries and regions, which provides cross-border RMB clearing service for 33 countries and regions. The number of currencies of cross-border remittance transactions reached 17.
– 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. Currently, the Bank ranked first in integration among all commercial banks. Besides the commercial banking businesses, the Bank extended its business to many areas such as trust, financial leasing, fund management, insurance, securities and debt-to-equity conversion, etc. The wholly-owned subsidiaries of the Bank included BoCom Leasing, BoCom Insurance, BoCom Investment and BoCom Asset Management (under establishment). Subsidiaries controlled by the Bank included BoCom International, BoCom Schroder Fund, BoCom International Trust and BoCommLife Insurance. Additionally, BoCom International listed on Hong Kong Stock Exchange in May 2017, becoming the first Chinese funded securities trader and listed in Hong Kong. BoCom Leasing and BoCom International Trust arrived at the top place in the industry.
– Progressive wealth management characteristics. The Bank initiated the concept of wealth management services among the banks in the industry at a 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. Service categorization covering both high and mid-end customers and ordinary customers was established in personal banking business. Intelligent services such as “OTO Financial Advisor” and “My Account Manager” were newly introduced. The integrated operation of online and offline achieved initial success. The core service brand “Win to Fortune” for high-end and mid-end customers gained increasing market reputation. As at the end of the Reporting Period, individual financial asset under management (“AUM”) amounted to RMB3.06 trillion. The Bank won the Ninth Jin Li Cai “Top Award for 2018 Annual Wealth Management Brand”. With regard to corporate business, brand building of “Win to Fortune” achieved initial success, financial service platform “Win to Fortune E Chain” was launched to enhance the capabilities of serving corporate customers in the mobile area. Key products including “Win to Fortune Account”, “Win to Fortune Industrial Chain” and asset securitization enjoyed growing influence. The Bank was awarded the “China Best Service Provider – Cash Management” and the “Best Asset Securitization Award in China in 2018” by The Asset and “Best Supply Chain Financing Bank” by Asia Money in 2018.
– Constant improvement of online and offline all channels’ service capabilities. The Bank was among the earliest banks that developed strategic objective of enhancing services and committed to providing best services of all channels. With serving the real economy as its core, the Bank constantly improved the capabilities of financial services for the real economy. As at the end of the Reporting Period, the balance of loans of the Group reached RMB4,854.228 billion, with an increase of RMB274.972 billion over the end of the previous year, which effectively supported the real economy. The Bank constantly improved customer service mechanism, innovated service patterns, optimized service processes focusing on customer experiences. The Bank actively protected consumer rights, continuously promoted financial education to customers and strengthened the spread and popularization of financial knowledge. The Bank speeded up the light and intelligent construction of the outlets, adhered to the transformation direction of “comprehensive operation, flexible services”, promoted the innovation of outlet service mode and improved service capabilities and customer experiences. The Bank created “Online + Offline” integrated synergy services, pioneered to realize the trans-time-and-space interaction functions such as mobile banking and live broadcasting in the industry under the transformation strategy of “online-based and mobile-first” with videos as the social communication medium to meet customers’ real-time and fragmented service requirements, which achieved “out of the store but still in the Bank, offline but still in the Bank, in store equals online, online equals in store”. High-quality service became the Bank’s operating advantages and characteristics. In 2018, BoCom Mobile Banking APP won the “Best Personal Mobile Banking Award” of China Financial Accreditation Center, 135 network outlets of the Bank were awarded Top 1,000 Outlets held by China Banking Association, ranking first in the industry, becoming the pioneer in the competition for five times since 2013.
– Fully embraced financial technology development trend. The Bank realized the importance of financial innovation. The Bank set up Product Innovation and Promotion Committee in 2010, headed by Senior Management, continuously promoted businesses and product innovation on strategic level. The Bank established an innovation laboratory to promote forward-looking and uncertain technology exploration, research and incubation. In 2018, the Bank focused on artificial intelligence, block chains, big data, knowledge graph, Internet of Things, home banking and other fields and strengthened the application of emerging technologies in banking-related scenarios. In order to adapt to the trend of digitalization, the Bank established Online Financial Business Center and strived to build a Fintech platform to promote the technology application such as big data, mobile communication and artificial intelligence. Furthermore, the Bank accelerated the construction of online channel by focusing on development of mobile banking APP and Go Pay APP, which reached top of the industry in terms of market influence and number of active customers. In 2018, the Bank initiated the intelligent transformation project of the Group’s information system (“New 531” project), which considered digitization and intelligence as the core and promoted the deep integration of banking businesses applications and financial technologies and such as big data, mobile communication, artificial intelligence, block chains, etc.
– Sound and effective comprehensive risk management system. The Bank always adhered to the risk appetite with “stability, balance, compliance and innovation” as its core, formed a risk culture characterized by “law compliance, stable operation, innovation and aggressiveness and accountability for the violation of regulations”, established the cultural connotation of “process-based and procedure-first”, developed the management concept of “horizontal, vertical and complete coverage”, finalized the comprehensive risk management system with the committee as the core, innovated various risk management tools and built the core advantage of risk management with its own distinctive features. During the Reporting Period, the Bank initiated and deepened the reform of risk and credit management and further consolidated, inherited and carried forward the advantages of risk management. The Bank continuously moved forward various reform measures by focusing on the goal of establishing the risk management system of “full coverage, differentiation, specialization, intelligence and accountability”. As at the end of the Reporting Period, the Bank’s major asset-quality indicators were stable and sound. The balances of overdue loan and overdue loan for over 90 days of the Group both continued to decrease, the impaired loans ratio decreased by one basis point over the end of the previous year and provision coverage of impaired loans increased by 18.40 percentage points over the end of the previous year.
– Fruitful strategic cooperation with HSBC. In 2004, the Bank entered into a strategic cooperation agreement with HSBC. Over the past decade, BoCom and HSBC had stable cooperation. HSBC increased the share holdings of BoCom for several times. HSBC was the second largest shareholder (19.03% of the total shares) of the Bank, who had two seats in the Board of Directors. Thereinto Mr. Peter Wong Tung Shun, held the post of Non-executive Vice Chairman of the Bank. Senior Management and working team from both parties kept closely communication and stressed on exercising each’s advantages, creating BoCom and 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. In 2018, both parties mutually agreed to upgrade the strategic cooperation between BoCom and HSBC to “deepen strategic cooperation and create shared value” and worked together to create more value for each shareholder, customers and society by constantly enriching the cooperation and exploring the cooperation potentials.