– Organized an effective corporate governance system. The Bank has commitment to high-level corporate governance. We have established a modern corporate governance system with independent operation, coordination and appropriate segregation of duties between the Shareholders’ General Meeting, the Board of Directors, the Board of Supervisors and Senior Management. While deepening the reform, the Bank adheres to the Party’s core leadership, the strategic decision by the Board of Directors, the independent supervision of the Board of Supervisors and full authority to senior management over business operations. The Bank’s corporate governance has covered and extended to many areas such as the development of the Party’s building, “BoCom Strategy” management, authorized operation, comprehensive risk management, capital management, market value management, information disclosure and social responsibilities, fully safeguarding the legitimate interests and benefits of shareholders and other stakeholders.
– Mega bank with spirit of reformation. The Bank has always been a pioneer of China’s financial system reformation. The Bank is the first among domestic comprehensive commercial banks to carry out banking, insurance and securities businesses, and the first among domestic large-scale commercial banks to successfully attract foreign capital and list overseas. In the new era, the Bank takes the initiatives to be responsible for the financial pilot reform in China once again. The Bank actively promotes the BoCom’s plan to strengthen Reformation approved by the State Council, focusing on the exploration of corporate governance mechanism of large-scale commercial banks, reform in internal operation mechanism and transformation of operating mode. The Bank has made significant progress in areas such as enhancing corporate governance mechanism with Chinese characteristics, exercising the strategic investors role of HSBC, piloting the professional manager system, reforming divisional structure, innovating the research and development mechanism of technology, enhancing the subsidiaries’ capital management, and transforming outlet operating mode.
– Continuous improvement of comprehensive financial services. The Bank was committed to becoming a comprehensive financial service group focusing on banking industry to serve the real economy through multiple channels and across the regions. In recent years, the Bank firstly started pilot reform in comprehensive and diversified operations among all commercial banks. The Bank has become one of the large-scale commercial banks which provides the most comprehensive and diversified financial services in China. Besides the banking businesses, the Bank extends its businesses to the areas of trust, financial leasing, fund management, insurance and securities. There are wholly-owned subsidiaries include BoCom Leasing, BoCom International and BoCom Insurance, and subsidiaries controlled by the Bank include BoCom Fund, BoCom International Trust and BoCommLife Insurance. Additionally, the Bank controls four rural banks including Dayi BoCom Xingmin Rural Bank Ltd., Zhejiang Anji BoCom Rural Bank Ltd., Xinjiang Shihezi BoCom Rural Bank Ltd. and Qingdao Laoshan BoCom Rural Bank Ltd. The Bank is the largest shareholder of Jiangsu Changshu Rural Commercial Bank Co., Ltd. And is one of two largest shareholders of Bank of Tibet Co., Ltd and strategic investor in Bank of Hainan.
– Constant enhancement of global service ability. The Bank was committed to becoming a first-class international bank with remarkable advantages in international businesses, advanced operation and management level and delivery of global financial services. The Bank is one of the most internationalized domestic banks in China. Currently, the overseas banking institution “Asia-Pacific as basis and Europe and America as two wings to expand the global landscape”. As at the end of 2016, the Bank has set up 20 overseas banking entities in over 16 countries and regions, including branches in Hong Kong, New York, Tokyo, Singapore, Seoul, Frankfurt, Macau, Ho Chi Minh City, San Francisco, Sydney and Taipei, London Branch of BoCom/Bank of Communications (UK) Limited, Bank of Communications (Luxembourg) Limited/Luxembourg Branch of BoCom, Brisbane Branch of BoCom, Bank of Communications (Luxembourg) S.A. Paris Branch, Bank of Communications (Luxembourg) S.A. Rome Branch,Banco BBM (BoCom BBM) and representative office in Toronto. The Bank has established 65 overseas banking outlets in total (excluding the representative office).
– More prominent wealth management characteristics. The Bank started the wealth management services earlier than most of its peers. The brand and characteristics of wealth management become more and more prominent by continuous development of the wealth management service system. A tiered customer service brand system covering both high and mid-end customers and ordinary customers has been established in personal banking businesses. The core service brand “Win to Fortune” for high and mid-end customers reflected increasing market reputation. As at the end of 2016, retail assets under management (AUM) amounted to RMB2.7 trillion. With regard to corporate banking businesses, brand building of “Win to Fortune” has achieved initial success, coupled with the growing influence of key products including “Win to Fortune” account and “Win to Fortune” industrial chain. Moreover, the rapid development in “BoCom Tong Ye” interbank wealth management businesses have constantly enhanced its brand reputation. The Bank was awarded the “Best Interbank Wealth Management Bank” in 2016.
– Comprehensive service channel of “Trinity” network, featuring physical outlets, e-banking and relationship managers. The Bank was committed to promoting the integration and development of the service mode of “Trinity” network, featuring physical outlets, e-banking and relationship managers. As at the end of 2016, the Bank has set up 3,285 outlets in 236 cities which are prefectural and above level city and 167 county-level cities all over China, covering all provinces other than Tibet, as well as major large and medium-sized cities. The Bank explored to build the operation mode which incorporated online and offline operations, and on-site and off-site operations. The Bank promoted the transformation and innovation of outlet service mode, to further satisfy customers’ needs for comprehensive transactions. The Bank explored the internet financial innovation in accordance with its own characteristics by connecting online channels such as intra-group PC and mobile phone, building a unified entrance for online-channel of the Group, delivering a web portal for one-stop and comprehensive financial services and setting up an internet center.
– Advanced information application and infrastructure construction. The Bank’s information construction always focused on strategies, serving customers and keeping with the time. After several years of accumulation, breakthroughs and progresses, the Bank’s information infrastructure development and application have been in the leading position in the banking sector by stimulating the technology innovation and driving development. The Bank has passed four verifications, namely CMMI L3, TMMI L3, ISO 20000 and ISO 27001, and built a complete standardized management system covering R&D, testing, operation and maintenance and information safety. Furthermore, the “Two Sites and Three Centers” disaster backup system maintained the international advanced level in terms of technology. The Bank’s new generation of “531” information system project has been fully implemented in domestic branches, which is considered as one of the leading business process information system among all domestic banks.
– Excellent comprehensive risk management system. Over a century after its establishment, the Bank has always adhered to the principle of steady operation, and continuously improved the comprehensive risk management system of “full coverage, whole process, accountability and risk management culture”. The Bank has been one of the first batch of commercial banks to apply the New Basel Capital Accord and has established a scientific, complete and effective system to apply the Advanced Measurement Approach of Capital Management, where risk models and measurement results are fully applied in business development and risk management and control, which has reinforced the foundation for continuous reform, innovation and steady development. Financial risk prevention and management has been the top priority of operation. The Bank focused on preventing and managing risks including non-performing assets, liquidity risk, bond default, shadow banking, real estate bubble and other three risks. The Bank’s asset quality is maintained at a stable level. As at the end of 2016, the non-performing loan ratio was 1.52%, lower than the average non-performing loan ratio of commercial banks in China.
– Fruitful strategic cooperation with HSBC. In 2004, the Bank entered into a strategic cooperation agreement with HSBC. Over the past decade, BoCom and HSBC have stable equity cooperation basis and are carrying out in-depth cooperation in five main areas including corporate governance, global businesses, technical experience, regulatory policies and public welfare, setting an example for cooperations between Chinese and foreign banks. In 2016, Mr. Peter Wong Tung Shun, the president of HSBC, held the post of Non-executive Vice Chairman of the Bank, indicating further deepening the strategic partnership and further improving the top-level design. By exercising each advantages, BoCom and HSBC create the BoCom – HSBC “1 + 1” service brand together and continue expanding the cooperation scale in fields in the international businesses, cooperate businesses, personal businesses and custody businesses, hence achieving mutual benefits and win-win results.
– Influential financial service brand. “BoCom”, one of the oldest commercial banks in China, is highly recognized and appreciated in the market. In 2016, the Bank was honored in FORTUNE’s “Fortune Global 500” for eight consecutive years and was ranked No. 153 in terms of revenue. The Bank was ranked No. 13 among the global top 1,000 banks in terms of Tier-1 Capital rated by The Banker and was ranked top 20 among global banks in two consecutive years. The Bank was ranked No. 1 in terms of number of outlets rewarded by the China Banking Association in the campaign of “Top 1,000 Model Units for Civilized and Standardized Service in China’s Banking Sector”, was ranked No. 1 for three consecutive years in China Retail Banking Satisfaction Study by J.D. Power, and was among the top 25 ranks in the “Top 100 Most Valuable Chinese Brands” by BrandZ for four consecutive years.