ANNUAL REPORT
目錄 CONTENTS 工銀亞洲簡介 2 3 Profile of ICBC (Asia) 公司資料 4 5 Corporate Information 財務概況 6 6 Financial Performance 主席致辭 10 25 Chairman s Statement 管理層討論與分析 12 27 Management s Discussion and Analysis 董事及高層管理人員簡歷 20 35 Biographical Details of Directors & Senior Management 董事會報告 40 40 Report of the Directors 企業管治報告 44 44 Corporate Governance Report 獨立核數師報告書 57 57 Independent Auditors Report 綜合收益表 59 59 Consolidated Income Statement 綜合全面收益表 60 60 Consolidated Statement of Comprehensive Income 綜合財務狀況表 61 61 Consolidated Statement of Financial Position 財務狀況表 62 62 Statement of Financial Position 綜合股東權益變動表 63 63 Consolidated Statement of Changes in Equity 綜合現金流量表 65 65 Consolidated Statement of Cash Flows 67 67 附加財務資料 224 224 Supplementary Financial Information 分行 附屬及聯營公司 243 243 Branches, Subsidiaries and Associate
Industrial and Commercial Bank of China (Asia) Limited 工銀亞洲簡介 A F1 A 1 A2 Prime-1 C 02 Annual Report
Industrial and Commercial Bank of China (Asia) Limited Profile of ICBC (Asia) Industrial and Commercial Bank of China (Asia) Limited ( ICBC (Asia) ), being the flagship of Hong Kong banking business of Industrial and Commercial Bank of China Limited ( ICBC ) currently the world s largest commercial bank by market capitalisation, offers a wide range of financial services to corporate and individual customers, including various types of deposits and loans, trade finance, remittance, settlement, commercial and industrial finance, syndicated loans, inward and outward bills of exchange, China business advisory and financial services, asset management, securities, trustee and bullion brokerage services as well as insurance agency services. ICBC (Asia), formerly known as Union Bank of Hong Kong Limited, was established in Hong Kong in 1964 and publicly listed in 1973. Over the years, the Bank offered advanced and diversified banking services to its customers. The Bank changed its name to Industrial and Commercial Bank of China (Asia) Limited on 21 August 2000 following its becoming a member of ICBC Group. In July 2001, ICBC injected the corporate banking business of its Hong Kong Branch into ICBC (Asia). It expanded the customer base of ICBC (Asia), improved its deposits and loans portfolio and also diversified its product mix. Such transfer of business therefore led to a substantial enhancement of the competitive edge of ICBC (Asia). ICBC (Asia) acquired Fortis Bank Asia HK s retail and commercial banking operations on 30 April 2004. Fortis Bank Asia HK was then renamed to Belgian Bank and became a wholly-owned subsidiary of ICBC (Asia). In October 2005, Belgian Bank, Hong Kong Branch was formally merged with ICBC (Asia). In 2005, ICBC (Asia) acquired Chinese Mercantile Bank which becomes its wholly-owned subsidiary and focuses on RMB banking business in Mainland China. On 31 August 2008, ICBC (Asia) completed the acquisition of Worldsec Asset Management Limited and renamed it to ICBC (Asia) Investment Management Company Limited. Being a wholly-owned subsidiary of ICBC (Asia), ICBC (Asia) Investment Management Company Limited provides professional investment and asset management services. On 21 December 2010, ICBC completed its privatisation process of ICBC (Asia), which was henceforth withdrawn from listing on The Stock Exchange of Hong Kong Limited and became a wholly-owned subsidiary of ICBC. The completion of privatisation thus provides ICBC (Asia) with broader access to finance, allows greater flexibility in obtaining the support of ICBC and achieving more effective business connection and integration within the ICBC Group. By persisting in the business strategy of based in Hong Kong, backed by the Mainland, facing the world, ICBC (Asia) seizes the favourable opportunities of Hong Kong being the offshore Renminbi centre and keenly explores Renminbi businesses and cross-border banking services. ICBC (Asia) realized a number of pioneering projects in offshore Renminbi financial products and was awarded Excellent Brand of Cross-border Banking Services. ICBC (Asia) is dedicated to becoming the Leading Bank for Cross-border Financial Services. On 15 June, Fitch Ratings affirmed A/F1 Long-Term/Short-Term Issuer Default Rating with stable outlook, A Subordinated Notes Rating and 1 Support Rating assigned to ICBC (Asia). On 15 June, ICBC (Asia) s A2/Prime-1 Long-Term/Short-Term Deposit Ratings and C Bank Financial Strength Rating assigned by Moody s Investors Service were affirmed while the outlook on all ratings is stable. Annual Report 03
公司資料 董事會 陳愛平 主席 董事總經理暨行政總裁 宗建新 董事 副行政總裁暨替任行政總裁 馮兆明 董事 副行政總裁 替任行政總裁暨風險總監 吳宏波 非執行董事 朱文信 非執行董事 史澤友 非執行董事 王于漸 S.B.S. 太平紳士 獨立非執行董事 徐耀華 獨立非執行董事 袁金浩 FHKIoD 獨立非執行董事 蔡耀君 S.B.S. FHKIB 獨立非執行董事 武捷思 獨立非執行董事 公司秘書 薪酬委員會 袁金浩 FHKIoD * 主席 王于漸 S.B.S. 太平紳士* 徐耀華* 吳宏波 武捷思* 提名委員會 徐耀華* 主席 袁金浩 FHKIoD* 吳宏波 高層管理人員 王于漸 S.B.S. 太平紳士 * 主席 蔡耀君 S.B.S. FHKIB * 替任主席 徐耀華* 史澤友 武捷思* 陳愛平 主席 董事總經理暨行政總裁 宗建新 董事 副行政總裁暨替任行政總裁 馮兆明 董事 副行政總裁 替任行政總裁暨風險總監 梁銘謙 副行政總裁暨財務總監 陳宇龍 副行政總裁暨營運總監 唐希強 副行政總裁 葉冠東 副行政總裁 宋萬海 助理行政總裁 羅麗軍 助理行政總裁 企業管治委員會 審計師 李定修 審核委員會 陳愛平 主席 馮兆明 吳宏波 王于漸 S.B.S. 太平紳士* 袁金浩 FHKIoD* 蔡耀君 S.B.S. FHKIB* 武捷思* 董事會風險管理委員會 吳宏波 主席 蔡耀君 S.B.S. FHKIB * 替任主席 馮兆明 朱文信 袁金浩 FHKIoD* 安永會計師事務所 香港中環添美道1號 中信大廈二十二樓 電話 2846 9888 圖文傳真 2868 4432 註冊辦事處 香港中環花園道三號 中國工商銀行大廈三十三樓 電話 2588 1188 圖文傳真 2805 1166 電訊 73264 ICBCA HX 郵箱 香港郵政總局信箱872號 環球銀行金融電信 UBHKHKHH 本年報可於 http://www.icbcasia.com/big5/about/corpnews/report/report_ a.shtml下載 * 04 獨立非執行董事
Industrial and Commercial Bank of China (Asia) Limited Corporate Information BOARD OF DIRECTORS Chen Aiping (Chairman, Managing Director & Chief Executive Officer) Zong Jianxin (Director, Deputy Chief Executive & Alternate Chief Executive) Fung Siu Ming (Director, Deputy Chief Executive, Alternate Chief Executive and Chief Risk Officer) Wu Hongbo (Non-executive Director) Zhu Wenxin (Non-executive Director) Shi Zeyou (Non-executive Director) Wong Yue Chim, Richard, S.B.S., J.P. (Independent Non-executive Director) Tsui Yiu Wa, Alec (Independent Non-executive Director) Yuen Kam Ho, George, FHKIoD (Independent Non-executive Director) Choi Yiu Kwan, S.B.S., FHKIB (Independent Non-executive Director) Wu Jie Si (Independent Non-executive Director) COMPANY SECRETARY Lee Ting Sau, Byron AUDIT COMMITTEE Wong Yue Chim, Richard, S.B.S., J.P.* (Chairman) Choi Yiu Kwan, S.B.S., FHKIB* (Alternate Chairman) Tsui Yiu Wa, Alec* Shi Zeyou Wu Jie Si* CORPORATE GOVERNANCE COMMITTEE Chen Aiping (Chairman) Fung Siu Ming Wu Hongbo Wong Yue Chim, Richard, S.B.S., J.P.* Yuen Kam Ho, George, FHKIoD* Choi Yiu Kwan, S.B.S., FHKIB* Wu Jie Si* RISK MANAGEMENT COMMITTEE OF BOARD OF DIRECTORS Wu Hongbo (Chairman) Choi Yiu Kwan, S.B.S., FHKIB* (Alternate Chairman) Fung Siu Ming Zhu Wenxin Yuen Kam Ho, George, FHKIoD* * Independent Non-executive Director REMUNERATION COMMITTEE Yuen Kam Ho, George, FHKIoD* (Chairman) Wong Yue Chim, Richard, S.B.S., J.P.* Tsui Yiu Wa, Alec* Wu Hongbo Wu Jie Si* NOMINATION COMMITTEE Tsui Yiu Wa, Alec* (Chairman) Yuen Kam Ho, George, FHKIoD* Wu Hongbo SENIOR MANAGEMENT Chen Aiping (Chairman, Managing Director & Chief Executive Officer) Zong Jianxin (Director, Deputy Chief Executive & Alternate Chief Executive) Fung Siu Ming (Director, Deputy Chief Executive, Alternate Chief Executive & Chief Risk Officer) Leung Ming Hym, Peter (Deputy Chief Executive & Chief Financial Officer) Chen Yulong (Deputy Chief Executive & Chief Operation Officer) Tong Hee Keung, Samuel (Deputy Chief Executive) Ip Koon Tung (Deputy Chief Executive) Song Wanhai (Assistant Chief Executive) Luo Lijun (Assistant Chief Executive) AUDITORS Ernst & Young 22/F, CITIC Tower 1 Tim Mei Avenue Central, Hong Kong Telephone: 2846 9888 Facsimile: 2868 4432 REGISTERED OFFICE 33/F., ICBC Tower 3 Garden Road, Central, Hong Kong Telephone: 2588 1188 Facsimile: 2805 1166 Telex: 73264 ICBCA HX Post Box: GPO Box 872 SWIFT: UBHKHKHH This Annual Report can be accessed through the internet at: http://www.icbcasia.com/eng/about/corpnews/report/report_ a.shtml Annual Report 05
財務概況 Financial Performance 二零一二年財務摘要 Financial Highlights 全年 百萬港元 For the Year (in HK$ million) 變動百分比 % Change 淨利息收入 淨收費及佣金收入 其他營業收入 營業支出 貸款減值損失支銷 5,869 1,347 230 2,016 4,907 966 355 1,644 19.6% 39.4% 35.2% 22.6% 除稅前溢利 稅項 股東應佔溢利 Net Interest Income Net Fee and Commission Income Other Operating Income Operating Expenses Charge for Impairment Losses on Loans and Advances Profit before Taxation Taxation Profit Attributable to Equity Holders 647 5,009 994 4,015 653 4,002 849 3,153 0.9% 25.2% 17.1% 27.3% 於年結日 百萬港元 At Year End (in HK$ million) 變動百分 比 % Change 貸款及墊款 資產總值 存款總額 股東資金 Loans and Advances Total Assets Total Deposits The Equity Holders Funds 264,302 425,681 290,220 39,901 237,489 404,958 298,806 29,081 11.3% 5.1% 2.9% 37.2% 財務比率 Financial Ratios 資本充足比率 全年平均流動資金比率 成本對收入比率 貸款對存款比率 Capital Adequacy Ratio Average Liquidity for the Year Cost to Income Loans to Deposits 15.5% 43.7% 27.1% 59.8% 15.9% 41.7% 26.4% 52.3% 未扣除減值損失之營業溢利 Operating Profit Before Impairment Losses 百萬港元 HK$ million 6,000 股東應佔溢利 Profit Attributable to Equity Holders 百萬港元 HK$ million 5,000 +18% 5,430 +41% 4,584 5,000 4,000 4,000 +15% 3,242 3,000 +27% 4,015 +5% 3,153 +13% 2,829 3,000 +22% 2,497 +19% 3,003 +161% 2,524 2,000 2,000 0 06-40% 966 1,000 1,000 2010 2009 2008 0 2010 2009 2008
財務概況 Financial Performance 五年財務概況 Five-Year Financial Summary 全年 百萬港元 For the Year (in HK$ million) 2010 2009 2008 淨利息收入 淨收費及佣金收入 其他營業收入 營業支出 貸款減值損失支銷 5,869 1,347 231 2,016 4,907 966 355 1,644 3,587 705 422 1,472 3,009 744 437 1,361 2,998 681 73 1,255 除稅前溢利 稅項 股東應佔溢利 Net Interest Income Net Fee and Commission Income Other Operating Income Operating Expenses Charge for Impairment Losses on Loans and Advances Profit before Tax Tax Profit Attributable to Equity Holders (647) 5,009 994 4,015 (653) 4,002 849 3,153 (262) 3,654 651 3,003 (386) 3,068 544 2,524 (409) 1,061 95 966 每股計 港元 Per Share (in HK$) 2010 2009 2008 每股基本盈利 每股股息 Basic Earnings per Share Dividend per Share 2.25 2.13 2.25 0.37 1.95 0.85 0.77 0.46 於年結日 百萬港元 At Year End (in HK$ million) 2010 2009 2008 貸款及墊款 資產總額 存款總額 股東資金 Loans and Advances Total Assets Total Deposits The Equity Holders Funds 264,302 425,681 290,220 39,901 237,489 404,958 298,806 29,081 185,058 266,938 204,181 20,149 147,025 215,800 163,556 18,268 137,083 194,716 142,496 14,090 財務比率 Financial Ratios 2010 2009 2008 資本充足比率 全年平均流動資金比率 貸款對存款比率 貸款對資產總額比率 減值貸款比率 組合減值準備覆蓋率* Capital Adequacy Ratio Average Liquidity for the Year Loans to Deposits Loans to Total Assets Impaired Loan ratio Collective Impairment Allowances Coverage Ratio* Cost to Income Dividend Payout Return on Average Assets Return on Average Common Equity 15.52% 43.72% 59.82% 62.09% 0.47% 15.89% 41.68% 52.30% 58.65% 0.52% 14.90% 42.90% 71.10% 69.30% 0.54% 14.90% 40.20% 71.90% 68.10% 0.92% 13.60% 37.00% 72.90% 70.50% 0.65% 1.55% 27.10% 0.95% 12.29% 1.55% 26.40% 0.90% 13.43% 0.90% 31.20% 16.70% 1.18% 15.88% 0.85% 32.40% 44.20% 1.23% 16.10% 0.85% 33.40% 61.70% 0.48% 6.80% 成本對收入比率 派息比率 平均資產回報率 平均普通股本回報率 * 包括 法定儲備 * Including "Regulatory Reserve" 資產總額 Total Assets 存款總額 Total Deposits 百萬港元 HK$ million 500,000 百萬港元 HK$ million 350,000 +5% 425,681 400,000 +52% 404,958 300,000 +46% -3% 290,220 298,806 250,000 +24% 266,938 300,000 +11% 215,800 200,000 +25% 204,181 200,000 +1% 194,716 +15% 163,556 150,000 +1% 142,496 100,000 100,000 0 50,000 2010 2009 2008 0 2010 2009 2008 07
財務概況 Financial Performance 存款 1. Deposits 按類別劃分 1. 活期 儲蓄 定期 合計 2. 按剩餘到期日劃分 2. 須於要求時即時償還 三個月或以下 一年或以下但超過三個月 按貨幣劃分 Current Savings Fixed Total 8.6% 17.9% 73.5% 100.0% 13.9% 15.4% 70.7% 100.0% 26.7% 57.6% 29.7% 52.6% 14.3% 1.4% 100.0% 16.5% 1.2% 100.0% 38.9% 27.5% 33.6% 100.0% 44.7% 24.4% 30.9% 100.0% 87.5% 92.2% 3.5% 2.6% 0.0% 2.3% 1.9% 0.0% 1.0% 5.4% 100.0% 0.8% 2.8% 100.0% By Remaining Maturity Repayable on Demand Three Months or Less One Year or Less, but Over Three Months Five Years or Less, but Over One Year Total 五年或以下但超過一年 合計 3. By Type 3. 港元 美元 其他 合計 By Currency HKD USD Others Total 其他營業收入 Other Operating Income 淨交易收入 及指定以公平價值經 損益表入賬金融資產 及負債之淨虧損 來自金融投資之股息收入 Net trading income and net loss on financial assets and liabilities designated at fair value through profit or loss Dividend income from financial investments Management fee income Rental income Rental income from investment properties Others Total 管理費收入 物業租金收入 投資物業租金收入 其他 合計 貸款總額 Total Loans and Advances 百萬港元 HK$ million 300,000 減值貸款比率 Impaired Loan Ratio 百分比 % +11 264,302 250,000 1.0 0.92% +28 237,489 +26% 185,058 200,000 0.65% +7% 147,025 +13% 137,083 150,000 0.5 0.47% 0.52% 0.54% 2010 100,000 50,000 0 08 2010 2009 2008 0.0 2009 2008
財務概況 Financial Performance 貸款組合 1. Loan Portfolio 按行業劃分* 1. 在香港使用之貸款 工商及金融 物業發展 物業投資 金融企業 股票經紀 批發及零售業 土木工程 製造業 運輸及運輸設備 電力 煤氣 資訊科技 娛樂活動 酒店 住宿及飲食 其他 個人 購買 居者有其屋計劃 私人參建居屋計劃 及 租者置其屋計劃 樓宇之貸款 購買其 他住宅物業之貸款 信用卡貸款 其他 貿易融資 在香港以外使用之貸款 合計 2. 按剩餘到期日劃分 2. 須於要求時即時償還 一年或以下 五年或以下但超過一年 超過五年 並無限期 合計 3. 按貨幣劃分 不包括商業票據及銀行同業 及其他金融機構貸款 Loans for Use in Hong Kong Industry, Commercial and Financial Property Development Property Investment Financial Concerns Stockbrokers Wholesale and Retail Trade Civil Engineering Works Manufacturing Transport and Transport Equipment Electricity and Gas Information Technology Recreation activities Hotels, Boarding House and Catering Others Individuals Loans for the purchases of flats in Home Ownership Scheme, Private Sector Participation Scheme and Tenants Purchase Schemes Loans for the purchase of Other Residential Properties Credit Card Advances Others Trade Finance Loans for Use outside Hong Kong Total By Remaining Maturity Repayable on Demand One Year or Less Five Years or Less, but Over One Year Over Five Years Undated Total 3. 港元 美元 其他 合計 * By Industry Sectors * By Currency HKD USD Others Total * 5.8% 5.2% 2.8% 0.4% 5.6% 0.1% 1.8% 5.5% 0.0% 3.3% 0.0% 0.9% 8.1% 5.7% 7.0% 2.7% 0.0% 6.4% 0.1% 1.8% 4.9% 0.0% 0.6% 0.0% 1.0% 3.4% 0.2% 0.2% 4.6% 0.1% 1.1% 27.0% 27.5% 100.0% 4.8% 0.1% 0.9% 30.0% 30.4% 100.0% 9.9% 49.8% 28.2% 12.1% 0.0% 100.0% 11.2% 47.7% 28.1% 13.0% 0.0% 100.0% 37.8% 36.4% 25.8% 100.0% 37.7% 37.6% 24.7% 100.0% Excluding Trade Bills and Advances to Banks and Other Financial Institutions 貸款組合 二零一二年 Loans Composition 個人 住宅按揭 Individuals Residential Mortgage 5% 收入組合 二零一二年 Income Composition 個人 其他 1% Individuals Others 工商及金融業 Industrial, Commercial & Financial 28% 貿易融資 27% Trade Finance 物業發展及 其他物業投資 Property Development & Other Property Investment 11% 香港以外 使用之貸款 Loans for use outside 28% Hong Kong 淨收費及佣金收入 Net Fee and Commission 18% 外滙交易及其他收入 3% Foreign Exchange and Other Income 淨利息收入 Net Interest Income 79% 09
Industrial and Commercial Bank of China (Asia) Limited 主席致辭 40 1 5 8 6 2 4,257 3,858 0.42% 0.03% 56 20 4 133 10 Annual Report
主席致辭 本行作為工商銀行集團加快實施國際化經營戰略的先驗陣地和重要舞台 在資產規模 盈利水平等 硬實力 不斷 提升的同時 高度重視企業內部管理 軟實力 經過兩年半的不懈努力 年本行已正式上綫由工商銀行自主 研發的境外核心系統(FOVA) 投產規模之大 功能覆蓋之廣 跨周期之長在銀行業資訊科技系統升級整合中罕 見 FOVA系統在工銀亞洲的投產 標誌著工商銀行境外業務系統的全面統一 進一步提升了工銀亞洲的產品創新 能力 客戶服務能力和風險管控能力 同時提升了工銀亞洲借助全球統一結算平台 協調其他海內外機構協同發 展的能力 目前 本行著力於網銀升級 系統優化 本地開發系統整合等為重點的後續FOVA工程完善工作 從而 為我行搭建一個融入集團全球發展 具有強大支持能力和風險控制能力 同業領先的科技平台夯實基礎 同時 本行在年亦聘請人力資源顧問公司開展 崗位職級和薪酬體系優化項目 力爭通過建立層級清晰 可進行市 場比較的崗位職級體系 多通道的職業發展路徑 以及分職能 層級的薪酬結構和激勵計劃 奠定人才管理的基 礎 提高員工的滿意度和敬業度 樹立具有強大號召力和吸引力的企業文化和市場品牌形象 展望2013年 全球經濟有望溫和復蘇但增長動力仍顯不足 歐債危機趨於緩和但全球金融市場風險猶存 在更加清 楚的認識未來全球金融市場發展趨勢的同時 本行將以更加廣闊的視野和戰略思維加快重點產品綫的發展 在做 優做強傳統商業銀行業務基礎上 加強融入集團管理體系和發揮運用集團資源優勢 實施綜合金融服務能力提升 戰略 積極研究適應客戶需求差異化及金融生態結構性變化趨勢 進一步完善投資管理 託管 債務資本工具 以及資產管理 基金和理財等金融資產服務業務產品綫 構建金融資產服務業務體系 同時 深刻把握人民幣國 際化機遇 提升人民幣全球化綜合化服務能力 延伸工商銀行作為全球第一大人民幣銀行的境外優勢 在人民幣 國際化進程中面臨更加有所作為 對於工銀亞洲董事會成員 在過去一年給予的寶貴意見 以及在確立經營戰略方向時給予的指導 本人謹在此表 示深深的謝意 本人對管理團隊和全體員工的不懈努力 熱忱投入和高效工作 致以衷心謝意 陳愛平 主席 二零一三年三月十五日 11
Industrial and Commercial Bank of China (Asia) Limited 管理層討論與分析 40 1 5 8 6 2 9 6 2 58 6 9 19.6% 3 8 1 13 4 7 39% 21.2% 22.6% 26.4% 27.1% 47 6 6 3 6 15.6% 2 7 69 9 2 1 2 4 2 57 2 7 5% 2 6 43 2 5 81 11.3% 1.7% 3 2111.4% 56 15.5% 15.9% 43.7% 41.7% 12 Annual Report
Industrial and Commercial Bank of China (Asia) Limited 管理層討論與分析 12 4 2 5 0.47% 18 2 3 15 6 5 7 8 8 7 6 9 10 3 5 7 9 6 3 7 8 6 7 9 54 90 130 Annual Report 13
Industrial and Commercial Bank of China (Asia) Limited 管理層討論與分析 U 25 27.5% 25.9% FOVA 23% 14 Annual Report
Industrial and Commercial Bank of China (Asia) Limited 管理層討論與分析 ibond Annual Report 15
Industrial and Commercial Bank of China (Asia) Limited 管理層討論與分析 19 250 16 Annual Report
Industrial and Commercial Bank of China (Asia) Limited 管理層討論與分析 QDII QFII 16% 16% 27% 17% 29% Annual Report 17
Industrial and Commercial Bank of China (Asia) Limited 管理層討論與分析 8 9 2 8 44.59% 5 1 47.43% 15 8 2 1 63.89% 727 9 38.85% 334 396 9 30.15% 28.73% NOVA 1,845 18 Annual Report
Industrial and Commercial Bank of China (Asia) Limited 管理層討論與分析 FOVA 10 588 Annual Report 19
董事及高層管理人員簡歷 陳愛平先生 主席 董事總經理暨行政總裁 陳先生 五十四歲 自二零零二年十二月起獲委任為本銀行董事 於二零零八年七月獲調任為本銀行董事總經理 暨行政總裁 並於二零一一年十月獲委任為本銀行主席 亦為本銀行企業管治委員會主席 陳先生亦於二零零八 年十一月獲委任為本銀行全資附屬公司華商銀行董事長 並為本銀行若干其他全資附屬公司工銀亞洲金業有限公 司 工銀亞洲代理人有限公司 工銀亞洲資產管理有限公司及工銀亞洲投資管理有限公司的董事 陳先生亦擔任 工銀國際控股有限公司副董事長 陳先生持有武漢大學文學士學位及香港大學工商管理 國際 碩士學位 陳先生 擁有逾二十七年銀行業務經驗 曾擔任中國工商銀行股份有限公司國際業務部總經理及中國工商銀行盧森堡有限 公司之主席 宗建新先生 董事 副行政總裁暨替任行政總裁 宗先生 四十六歲 於二零一零年一月加入本銀行為副總經理 並於同年十月獲委任為本銀行董事暨替任行政總 裁 宗先生亦擔任本銀行全資附屬公司華商銀行 工銀亞洲期貨有限公司 前稱工銀亞洲投資控股有限公司 工 銀亞洲投資管理有限公司 工銀亞洲代理人有限公司及ICBC (Asia) Wa Pei Nominees Limited的董事 宗先生畢業於 上海交通大學 獲工商管理碩士學位 並取得經濟師資格 宗先生擁有逾十七年銀行業務經驗 專注公司業務 國際業務及投資銀行等業務 於加入本銀行前 宗先生為中國工商銀行股份有限公司深圳市分行副行長 馮兆明先生 董事 副行政總裁 替任行政總裁暨風險總監 馮先生 六十歲 於二零零五年十月十日本銀行與華比銀行香港分行合併當天獲委任為本銀行風險總監 並於二 零零六年一月擢升為本銀行副總經理 馮先生於二零一一年八月獲委任為本銀行董事暨替任行政總裁 馮先生亦 為本銀行全資附屬公司華商銀行 ICBC (Asia) Wa Pei Nominees Limited 工銀亞洲金業有限公司 工銀亞洲期貨有 限公司 前稱工銀亞洲投資控股有限公司 及友聯中國業務管理有限公司的董事 馮先生持有香港大學社會科學系 榮譽學位 馮先生擁有逾三十八年本地銀行業務經驗 專注於貸款業務及信用風險管理 吳宏波先生 非執行董事 吳先生 四十八歲 自二零一一年十月起獲委任為本銀行董事 為本銀行董事會風險管理委員會主席 吳先生持 有中南財經大學貨幣銀行學碩士學位 中南財經政法大學金融學博士學位 並取得高級經濟師資格 吳先生擁有 逾二十四年銀行業務經驗 現為中國工商銀行股份有限公司集團派駐子公司董監事辦公室主任 他亦擔任中國工 商銀行 澳門 股份有限公司 中國工商銀行 中東 有限公司及阿根廷標準銀行的董事 20
董事及高層管理人員簡歷 朱文信先生 非執行董事 朱先生 六十歲 自二零一一年十月起獲委任為本銀行董事 朱先生畢業於中共中央黨校經濟管理專業 並取得 高級經濟師資格 朱先生擁有逾二十八年銀行業務經驗 現為中國工商銀行股份有限公司集團派駐子公司董監事 辦公室專職派出董事 他亦擔任中國工商銀行 澳門 股份有限公司 工銀金融租賃有限公司 工銀安盛人壽保險 有限公司及工銀瑞信基金管理有限公司的董事 史澤友先生 非執行董事 史先生 五十七歲 自二零一一年十月起獲委任為本銀行董事 史先生持有河北大學金融學學士學位 並取得高 級經濟師資格 史先生擁有逾三十三年銀行業務經驗 現為中國工商銀行股份有限公司集團派駐子公司董監事辦 公室專職派出董事 監事 他亦擔任中國工商銀行 中東 有限公司董事 中國工商銀行 莫斯科 股份公司董事 工銀金融租賃有限公司監事及工銀瑞信基金管理有限公司監事 王于漸教授 S.B.S. 太平紳士 獨立非執行董事 王教授 六十歲 自二零零零年七月起獲委任為本銀行獨立非執行董事 為本銀行審核委員會主席 王教授曾就 讀於美國芝加哥大學經濟系 取得博士學位 王教授現為香港大學經濟學講座教授 王教授積極推動有關香港及 中華人民共和國經濟政策之研究活動 為香港經濟研究中心及香港經濟及商業策略研究所之創辦總監 王教授於 一九九九年獲香港特別行政區政府頒授銀紫荊星章 以表揚其對香港教育 房屋 工業及科技發展所作出之貢獻 徐耀華先生 獨立非執行董事 徐先生 六十三歲 自二零零零年八月起獲委任為本銀行獨立非執行董事 為本銀行提名委員會主席 徐先生畢 業於美國田納西州大學 獲理學士及工程學碩士 工業工程學 學位 徐先生於美國哈佛大學甘迺迪政府研究院修 畢政府高級經理管理學課程 徐先生現任華高和昇財務顧問有限公司主席 在此之前 徐先生由二零零一年七月 至二零零二年六月期間於深圳證券交易所擔任諮詢顧問及理事 並於二零零零年八月至二零零一年二月期間出任 香港勵晶太平洋集團有限公司行政總裁 該公司於香港聯合交易所上市 於二零零一年十二月至二零零四年十二 月期間 徐先生曾任香港證券專業學會之主席 徐先生於一九九四年加入香港聯合交易所有限公司為財務及運作 服務科執行總監 並於一九九七年至二零零零年期間出任行政總裁一職 徐先生於二零零零年三月至二零零零年 七月期間出任香港交易及結算所有限公司之集團營運總裁 並於一九八九年至一九九三年期間出任香港證券及期 貨事務監察委員會之總經理 財務 資訊及人力資源 助理總監 發牌科 兼總經理 人力資源 徐先生過往亦積 極參與多項政府及社會活動 其中包括香港盈富基金監督委員會前主席 香港廉政公署證券 期貨及投資界專業 道德推廣計劃籌劃委員會前主席 香港公司法改革常務委員會前委員 香港貿易發展局金融服務諮詢委員會前委 員 香港公益金商業及僱員募捐計劃籌劃委員會前委員 銀行及金融組別 香港職業訓練局銀行及金融業訓練委 員會前委員及禁毒基金會管理委員會投資小組委員會前委員 21
董事及高層管理人員簡歷 袁金浩先生 FHKIoD 獨立非執行董事 袁先生 六十八歲 自二零零三年四月起獲委任為本銀行獨立非執行董事 為本銀行薪酬委員會主席 袁先生現 為PNG資源控股有限公司獨立非執行董事 該公司於香港聯合交易所上市 袁先生畢業於香港大學 取得經濟及 政治學榮譽學士學位 袁先生分別在美國麻省Cambridge國際市務學院修讀國際市場管理課程 及獲香港政府保薦 往英國牛津大學深造公共行政及國際關係 並於法國歐洲商業學院(INSEAD)參與國際工商管理人員培訓計劃 於 二零零三年六月 袁先生被邀參與美國哈佛大學肯尼地行政管理學院主辦的領袖發展計劃 於二零零四年六月 袁先生參與美國加州史丹福大學 公司管治 研修會議 在二零零六年初 史丹福大學社會創建學院更邀請袁先生 為訪問學者作短期研修 袁先生自一九九七年九月起九年內曾出任 香港明天更好基金 行政總裁 於加入 香港 明天更好基金 前 袁先生於香港政府新聞處擔任新聞處助理處長及署理副處長 袁先生積極參與籌組於香港舉 行之重要國際會議 並曾擔當多項公職 其中包括出任國際策略發展局董事局成員 於二零零三年至二零零七年 期間 袁先生曾任香港特別行政區政府中央政策組香港泛珠江三角洲流域研究委員會成員 袁先生現為中國人民 政治協商會議廣西壯族自治區委員會委員 中國社會科學院財政與貿易經濟研究所顧問 中國上海社會科學院港 澳研究中心顧問 中國廣州市國際投資促進中心顧問 中國太平洋經濟合作全國委員會特邀顧問 香港大學畢業 生議會委員 香港大學校董會委員及聯合國亞太經濟和社會委員會委員 袁先生為香港董事學會之資深會員 英 國管理學會及英國市務學會會員 並曾獲前任美國總統布殊親函嘉許其支持世界反恐工作的貢獻 蔡耀君先生 S.B.S., FHKIB 獨立非執行董事 蔡先生 五十八歲 自二零一三年一月起獲委任為本銀行獨立非執行董事 並為本銀行審核委員會及董事會風險 管理委員會替任主席 蔡先生持有香港理工大學會計系高級證書 並為香港銀行學會及香港財資市場公會資深會 士 蔡先生擁有超過三十五年的銀行監管經驗 他在一九七四年十一月到一九九三年三月之間在香港政府銀行 業監理處出任不同職位 他於一九九三年四月加入香港金融管理局 先後出任不同職位 包括銀行監管政策處主 管 行政總監 助理總裁 銀行監管 副總裁 貨幣政策與儲備管理 及副總裁 銀行監管 至二零一零年一月退休 為止 蔡先生也是交通銀行股份有限公司獨立非執行董事 該公司於香港聯合交易所及上海證券交易所上市 他 在二零一零年獲香港特別行政區政府頒發銀紫荊星章 22
董事及高層管理人員簡歷 武捷思博士 獨立非執行董事 武博士 六十一歲 自二零一三年三月起獲委任為本銀行獨立非執行董事 武博士持有中國人民銀行金融研究所 經濟學博士學位 並獲天津南開大學授予教授資格 武博士擁有逾二十八年企業管理與投資經驗 現為深圳富海 銀濤資產管理公司董事長 武博士亦為多家於香港聯合交易所上市公司的董事 其中包括中國奧園地產集團股份 有限公司副董事長 北京控股有限公司獨立非執行董事 中國太平保險控股有限公司獨立非執行董事及深圳控股 有限公司非執行董事 武博士曾任中國工商銀行股份有限公司深圳市分行行長 深圳市政府副市長及廣東省省長 助理 梁銘謙先生 副行政總裁暨財務總監 梁先生 五十歲 自二零零一年七月加入本銀行 於二零零七年三月起獲委任為助理總經理暨財務總監 並於二 零一一年八月獲委任為副行政總裁 梁先生亦為本銀行全資附屬公司工銀亞洲期貨有限公司 前稱工銀亞洲投資 控股有限公司 ICBCA (C.I.) Limited 工銀亞洲投資管理有限公司 工銀亞洲資產管理有限公司及工銀亞洲金業 有限公司之董事 梁先生持有英國紐卡素大學會計及財務分析學士學位和英國倫敦大學法律學士學位 梁先生為 英格蘭及威爾斯特許會計師公會之會員並為其會員顧問團成員 亦為香港會計師公會及英國特許公認會計師公會 之資深會員 梁先生擁有逾二十年企業財務之經驗 唐希強先生 副行政總裁 唐先生 五十五歲 於二零一一年八月獲委任為本銀行副行政總裁 主管本銀行公司業務 公司產品 資產託管 及機構業務的發展及營運 唐先生亦為本銀行全資附屬公司工銀亞洲信託有限公司之董事 唐先生持有布魯內爾 大學工商管理系碩士學位 唐先生為特許銀行學會之會員 擁有二十六年企業及商業銀行業務經驗 陳宇龍先生 副行政總裁暨營運總監 陳先生 三十九歲 自二零一零年十月加入本銀行為助理總經理 於同年十一月獲委任為營運總監 並於二零一二 年七月獲委任為副行政總裁 陳先生持有中國人民大學經濟學學士學位 吉林大學管理學碩士學位 並取得高級 經濟師資格 於二零零七年至二零零八年期間 陳先生赴美國伊利諾伊州立大學進修 陳先生在中國工商銀行股 份有限公司工作逾十六年 擁有豐富及全面的業務管理經驗 於加入本銀行前 陳先生為中國工商銀行股份有限 公司吉林省分行長春市分行副總經理 23
董事及高層管理人員簡歷 葉冠東先生 副行政總裁 葉先生 五十歲 自二零一三年二月加入本銀行為副行政總裁 主要負責本銀行風險控制等工作 葉先生持有香 港中文大學工商管理學士學位及碩士學位 葉先生為特許財務分析師 葉先生擁有逾二十六年銀行業務之經驗 於加入本銀行前 葉先生為恒生銀行首席信貸風險控制官 宋萬海先生 助理行政總裁 宋先生 四十五歲 自二零零四年七月加入本銀行 並於二零一一年六月獲委任為助理總經理 現主管本銀行個 人金融業務 私人銀行業務及信用卡業務的營運及發展 宋先生亦為本銀行全資附屬公司華商銀行 工銀亞洲代 理人有限公司及ICBC (Asia) Wa Pei Nominees Limited之董事 宋先生持有香港大學工商管理 國際 碩士學位及澳 大利亞南澳大利亞大學工商管理碩士學位 宋先生在中國工商銀行股份有限公司工作逾十五年 羅麗軍女士 助理行政總裁 羅女士 四十一歲 自二零一二年六月加入本銀行為助理行政總裁 主管本銀行風險管理 羅女士持有中國人民 大學歷史學學士學位 中國人民大學財政金融學院經濟學碩士學位及復旦大學與香港大學國際工商管理碩士學 位 於二零零九年八月至二零一零年六月期間 羅女士赴美國伊利諾伊大學海外研修 羅女士在中國工商銀行股 份有限公司工作逾十九年 擁有豐富的業務管理經驗 於加入本銀行前 羅女士為中國工商銀行股份有限公司風 險管理部專家 24
Industrial and Commercial Bank of China (Asia) Limited Chairman s Statement In, the international banking industry faced with tough challenges in trading environment as economic growth of major economies in the world slowed down and European sovereign debt crisis deteriorating continuously. Against such a background, the Bank, being the overseas flagship of ICBC Group, has proactively carried out its strategic reform in operation and management. By fully leveraging on the unique business environment of Hong Kong being an international financial hub and offshore Renminbi trading centre and continuous optimization of operation structure and enhancement of asset quality, the Bank repeatedly achieved recorded new highs in operation scale and profit growth. The after-tax net profit amounted to HK$4,015 million in, representing an increase of HK$862 million when compared to the previous year. In view of global financial upheavals and tenuous external demand, especially when there is relatively ample liquidity and weak credit demand in Hong Kong since the latter half of the year, ICBC (Asia) has made advance planning to manage and control the situation effectively. At the same time of maintaining stable growth of net interest spread and net interest income, we have strengthened asset business and intensified management of liability portfolio. As at the end of, the balance of total assets and liabilities of ICBC (Asia) amounted to HK$425.7 billion and HK$385.8 billion respectively. Also, the Bank always upholds the proactive and prudent corporate culture of ICBC Group and stresses on both business development and risk control. Asset quality remained at a good level and operating risk is effectively controlled. As at the end of, the nonperforming asset ratio of the Bank was 0.42%, representing a decrease of 0.03% when compared to the end of previous year. is a critical year for expediting the transformation of corporate loans and retail banking business of the Bank. For corporate loans business, the Bank has continuously enhanced the standard of domestic and overseas integrated marketing services provided to substantial corporate customers, key strategic customers and cross-border customers, in an attempt to increase the overall contribution of substantial customers to the Bank. For retail banking business, the Bank has fully utilized its technological platform, strengthened the establishment of application systems, optimized the flow of business operations, further explored and proceeded with the reform and innovation of retail business management model. We have made significant progress in expansion of customer base, product innovation and establishment of various channels. In, two branches were newly set up. At present, there are a total of 56 branches, 20 Elite Club wealth management centres and 4 commercial business centres in Hong Kong. The number of automatic teller machines has been increased to 133. ICBC (Asia) strives to build up its image and status as a Renminbi market maker in Hong Kong offshore market. It is increasingly influential in the market. Nowadays, ICBC (Asia) is one of the banks in Hong Kong quoting CNY (HK) interbank lending rates, CNY (HK) swap offer rates, spot USD/CNY (HK) fixing and has been invited to become a member of London- Hong Kong RMB Forum. While the income from Renminbi business increased substantially, the Bank has also actively established the Renminbi business-related investment transaction and financial asset services platform. We will, as an effective tactic of further strengthening our status as a leading offshore Renminbi market maker, provide debt capital market services, financial market transaction business and asset management services by using less capital, giving highly added value in meeting with the diversified demands of our customers. Annual Report 25
Industrial and Commercial Bank of China (Asia) Limited Chairman s Statement The Bank, while serving as the pioneering and important platform of ICBC Group in the accelerated implementation of internationalized operational strategy, continuously increases its hard power such as asset size and profitability. Apart from this, we have also placed high emphasis on the soft power of internal corporate management. After making incessant efforts for two and a half years, the core banking system for overseas branches (FOVA system) developed by ICBC was officially installed by the Bank in. Its considerable scale, extensive coverage of function and long duration are exceptional in the upgrade and integration projects of IT system in banking industry. The launch of FOVA system in ICBC (Asia) signifies the complete unification of overseas banking system of ICBC. The FOVA system further enhances the product innovation, customer service and risk control capabilities of ICBC (Asia). At the same time, it enhances ICBC (Asia) s ability in leveraging on the globally unified clearing platform and coordinating with other overseas and domestic organizations to achieve synergies. Currently, the Bank focuses on the post implementation enhancement of FOVA system with emphasis on internet banking upgrade, system optimization and integration with local systems. This will in turn establish a solid foundation for us to build an industry leading technology platform which integrates into the Group s global development and possesses superior support and risk control capabilities. In, the Bank has engaged a human resources consulting company to launch a job ranking and remuneration system optimization project which aims at establishing a clearly-defined and market-aligned job ranking system, multiple career development pathways as well as a remuneration structure and incentive system based on job duties and rankings, so as to lay a foundation for the human resources management, raise the level of satisfaction and commitment among the employees and build strongly motivating and attractive corporate culture and brand image. Looking ahead to 2013, mild recovery of global economy is expected but there is a lack of underlying momentum of growth. European debt crisis is abating but the risks pertaining to global financial market still exist. While the Bank closely monitors the future development trends of global financial market, it will expedite the development of key products from a broader perspective and strategic vision. We will further strengthen the foundation of traditional commercial banking business and also implement a synthetic financial services capability enhancement strategy by integrating into the management system of the Group and deploying the Group s resources. We will actively study the trend of differentiated demand of customers and structural change of financial system, further optimize the spectrum of financial asset services and products such as investment management, custody, debt capital instruments, asset management, fund and wealth management, in an effort to build a financial asset services system. At the same time, we will grasp the opportunities of internationalization of Renminbi, enhance the globally integrated Renminbi services capability, extend the advantage of ICBC being the world s largest Renminbi bank to overseas markets, and make a greater contribution to the internationalization process of Renminbi. I hereby express my deepest gratitude to all the members of the Board of Directors of ICBC (Asia) for their valuable opinions given in the past year and for their advice in formulating the business strategies. I also wish to extend my heartfelt thanks to the management team and all the staff who have demonstrated tireless efforts, enthusiasm and efficiency in their work. Chen Aiping Chairman 15 March 2013 26 Annual Report
Industrial and Commercial Bank of China (Asia) Limited Management s Discussion and Analysis FINANCIAL REVIEW The Group achieved a record high profit after tax of HK$4,015 million for the year, representing an increase of HK$862 million as compared to the previous year. As a result of strong growth in interest-bearing assets, ICBC (Asia) s net interest income increased by HK$962 million, or 19.6%, to HK$5,869 million. Net fee and commission income increased by HK$381 million, or 39%, to HK$1,347 million. The ratio of non-interest income to total operating income was 21.2%. Total operating expenses were 22.6% higher than the previous year. The cost to income ratio slightly increased from 26.4% in to 27.1% in. Operating profit after impairment losses was HK$4,706 million, an increase of HK$636 million, or 15.6%, as compared with. The Group recorded HK$276 million of net gain from disposal of investment securities as compared to the disposal loss of HK$99 million in. Share of profit from an associate decreased to HK$20 million from HK$21 million in. STATEMENT OF FINANCIAL POSITION As at 31 December, ICBC (Asia) s total assets amounted to HK$425.7 billion, representing an increase of HK$20.7 billion, or 5%, as compared with the previous year-end position. Loans and customers deposits reached HK$264.3 billion and HK$258.1 billion respectively, representing an increase of 11.3% and decrease of 1.7% respectively as compared to the position as at 31 December. As at 31 December, total outstanding certificates of deposit issued amounted to HK$32.1 billion, representing a decrease of 11.4% as compared to 31 December. CAPITAL AND LIQUIDITY MANAGEMENT During the year, ICBC completed the capital injection of HK$5.6 billion into ICBC (Asia), and the capital adequacy ratio of the Bank was 15.5% as at the end of (the end of : 15.9%). The average liquidity ratio for the year was 43.7% (: an average of 41.7%). Annual Report 27
Industrial and Commercial Bank of China (Asia) Limited Management s Discussion and Analysis ASSET QUALITY Under the Bank s prudent risk management policy, the asset quality remained continuously at a satisfactory level. As at the end of, impaired loans amounted to HK$1,242 million while the impaired loan ratio decreased by 5 basis points to 0.47% as compared with. As at 31 December, the cumulative loan impairment allowances aggregated to HK$1,823 million (: HK$1,565 million). This included HK$788 million (: HK$769 million) of individual impairment allowances and HK$1,035 million (: HK$796 million) of collective impairment allowances. The increase of the impairment allowances was mainly due to the increase of loan portfolio. As at 31 December, total overdue advances decreased by HK$378 million, to HK$679 million, as compared to the previous year-end position. BUSINESS REVIEW Commercial Banking In, the Bank has proactively addressed the tough challenges posed by adverse events such as the deceleration of economic growth in Mainland China and continuous deterioration of European debt crisis to our operation. Meanwhile, the Bank fully grasped the opportunities offered by the introduction of a series of quantitative easing policies in the latter half of. Besides strengthening asset business and intensifying management of liability portfolio, we have focused on taking low interest rate deposits. The share of low interest rate deposits in the year increased by nearly 7% when compared to, thus the net interest spread was widened and the annual increase in net interest income was over 30%. Apart from these, due to the significant increase in commission income from trade finance, fixed-term revolving loans and syndicated loans, the fee and commission income of the Bank achieved brilliant results and rose by nearly 60%. The robust development of offshore Renminbi market in Hong Kong has injected new vigor into our further expansion of Renminbi business. At the end of, the Bank was among the first lenders which extended cross-border Renminbi loans to the companies incorporated in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. Being one of the first-movers in providing Renminbi cross-border trade products, we are always customer-oriented and provide professional and quality services, demonstrating our strengths as the Leading Bank for Cross-border Financial Services and driving for the growth in Renminbi deposits, loans, cross-border trade settlement and treasury business etc. Retail Channel In, the Bank continued to expand and optimize the retail network proactively. Two branches have been newly opened in Siu Sai Wan and Tai Wai. Tai Wai Station Personal Banking Centre was established at MTR Tai Wai Station. On the other hand, Shau Kei Wan Branch was upgraded as a Personal Banking Centre in an attempt to provide high quality retail banking services. At the same time, the Bank has continuously developed offsite self-service banking outlets. During the year, a number of self-service banking centres and offsite automatic teller machines were set up which covered many MTR stations, shopping arcades and housing estates with high pedestrian flow. As at 31 December, the number of our branches increased to 54 and the number of automatic teller machines increased to 130 from 90 in, which built an integral service network. 28 Annual Report
Industrial and Commercial Bank of China (Asia) Limited Management s Discussion and Analysis In line with our market-driven approach based on the actual needs of customers, the Bank strives to explore and proceed with the reform and innovation of retail business management model. We have made significant progress in the broadening of customer base, product innovation and channel establishment. During the year, we have launched various business promotional activities with the aim of giving a boost to the development of retail business. Further, the spirit of Quality service is the key has been implemented thoroughly in the Bank which stresses the importance of meticulousness and refined management in the key points of contact in the branches. In this way, the quality of service of the frontline staff and banking outlets will be constantly enhanced. Electronic Banking The Bank puts emphasis on the development of electronic banking by fostering technological innovation and adapting to market demand. We have continuously expanded new transaction channels and functions for our customers. For online banking, 25 new functions and optimized solutions have been introduced throughout the year, which include online securities margin account opening, ICBC (Asia) USB-Shield, online banking paper gold, foreign currencies margin trading, self-service Renminbi account opening by non-hong Kong residents, etc. Various promotional offers have also been launched in respect of remittance, securities and insurance products. Customers are attracted to electronic banking channel versus traditional branch-oriented business model. As at the end of, the number of personal and corporate online banking customers rose by 27.5% and 25.9% respectively when compared to. The Bank unveiled mobile banking in early and has since achieved rapid development. Services such as securities trading, account management, fund transfer and remittance are provided through iphone app or smart phone browser. During the year, the Bank has accelerated the construction of a brand new online banking platform which has commenced operation in January 2013. The new online banking leverages on the technological strengths of ICBC, our parent company, as well as its globally integrated FOVA platform. With the global access service capability, the customer will experience expedient and convenient online service. Securities and Brokerage The stock market of Hong Kong was characterized by high volatility in. The stock index was obviously dragged down by slow economic recovery of developed economies and continuous deterioration of European debt crisis. In the second half of the year, although global rescue measures acted as a catalyst for the gradual pick up of investment sentiment, total turnover in Hong Kong stock market was still weak throughout the year and slid by 23% when compared to. Under such unfavourable circumstances, the Bank focused on optimizing its products and improving its service standard. Our competitiveness has been greatly enhanced by the introduction of innovative online application of securities margin account and one-stop approval of credit facilities. In the year ahead, the Bank will continue to proactively expand the potential customer base both locally and in Mainland China, continuously pursue product innovation and strengthen the functions of our systems in an effort to elevate the overall profitability and competitiveness. Annual Report 29
Industrial and Commercial Bank of China (Asia) Limited Management s Discussion and Analysis Private Banking Despite the critical market environment faced by our private banking business in, we still achieved relatively strong growth in terms of the customers base, asset management and income. On one hand, through enhanced connection between Hong Kong and Mainland China, we are dedicated to product research, development and selection and continuously improve the product and service system of Hong Kong private banking centre. On the other hand, we have established a definite customer referral and interaction mechanism between the branches, private banking head office and various divisions of ICBC (Asia), so as to deliver the best domestic and overseas asset management and asset services for customers under a global vision. In 2013, our private banking services will further enhance the product development and selection capability to attract investments from customers with our extensive product mix, increase the size of asset of customers, adjust and optimize the asset structure and create new income streams. Wealth Management In, the overall sales of our wealth management products increased substantially in the face of increasingly keen competition in wealth management market in Hong Kong, especially our fund business which accumulated annual sales of billions of Hong Kong dollars, posting the best ever sales record of the Bank. In order to strengthen our wealth management business, the Bank is constantly dedicated to product diversification, channel innovation and development. The service level and marketing efforts have been continuously strengthened. On one hand, the Bank has introduced many new fund companies and various kinds of insurance products, increased the size of Certificate of Deposit issued and participated in the placement of popular ibond and sovereign bond. Our market share was significantly elevated and we achieved brilliant results. Besides, in order to adapt to market development trends, we have constantly added electronic transaction channel for our products, thus providing customers with more convenient service. Also, the Bank has continuously optimized investment consulting services. Promotional activities such as investment seminars and comprehensive wealth forum have also been held to increase the marketing efforts. In 2013, the Bank will continue to strengthen its pursuit of product innovation and provision of more specialized products. Through continuous optimization of our service procedure, our customers will be offered more personalized wealth management services. By establishing an excellent brand image, the Bank will be better positioned to win more high-end customers. Global Market and Trading In, the Bank further consolidated its prominent position in Hong Kong offshore Renminbi market and was one of the most active participants in various product markets such as offshore Renminbi spot, forward and currency swaps. Furthermore, the Bank was appointed as the offshore Renminbi trading centre of ICBC Group and responsible for centralized price quotation and order execution in offshore Renminbi lending and deposits, precious metals account, exchange rate transaction, interest rate transaction and commodity transaction businesses for overseas organizations such as the subsidiaries and branches under the Group. 30 Annual Report
Industrial and Commercial Bank of China (Asia) Limited Management s Discussion and Analysis Global Capital Financing While seeking for continuous optimization of commercial banking service and products, the Bank, as the overseas flagship organization of ICBC, has leveraged on its strengths in capital, customers and network and made considerable progress in respect of global capital financing service. Currently, the global capital financing product mix of the Bank primarily includes syndicated loan arrangement, debt underwriting and issuance, structured financing arrangement, investment and financing advisory, and asset transaction etc. The Bank has seized the opportunity arising from the flourishing cross-border capital financing market and focused on the development of offshore bond underwriting business. It has completed fund raisings in Renminbi/foreign currency for the Ministry of Finance and other key customers and won wide acclaim among the issuers. In, ICBC (Asia) acted as manager and raised over RMB25 billion in a total of 19 bond issuance in local and foreign currencies, ranking No. 4 in global dimsum bond market for two consecutive years and has become a prominent and influential player in the market. Apart from achieving a breakthrough in bond underwriting business, the Bank has also made many achievements in the expansion of sales channels and innovation of business model. The spectrum of global capital financing products is increasingly sophisticated which lays a solid foundation for the growth of future business. Institutional Business In, our institutional business has grown rapidly. The customer base has been further consolidated and covered a wide array of banks, non-banking financial institutions such as securities firms, insurers, trusts and funds companies, and also government and public organizations. The product mix was more optimized and includes cash management services such as Smart Account and settlement, loans abroad with deposits domestically, trade finance business such as various revolving loans, syndicated loans, payment service and risk participation, as well as structured deposits and treasury products. Through the proactive interaction with domestic branches, overseas organizations, subsidiaries and affiliated organizations of ICBC and by means of customer cross-referrals, interconnected products, experience sharing and business collaboration, the Bank has spared no effort in enhancing the popularity and influence of the Group in overseas countries. In the year ahead, the Bank will proactively grasp the opportunities in an attempt to push for the transformation of business, increase sustainable profitability and further expand our influence among the peers. Asset Management In, ICBC (Asia) Investment Management Company Limited ( ICBC (Asia) Investment ), our wholly-owned subsidiary, recorded a sharp increase in the size of asset management. In July, ICBC (Asia) Investment has signed an investment management agreement with a large central bank in Africa and managed its offshore Renminbi bond and relevant portfolios officially since August. Following the success of this African central bank project, ICBC (Asia) Investment made persistent efforts to promote wealth management products to central banks and sovereign funds in some countries in Southeast Asia, Europe, Middle East and Africa. It has until now reached preliminary intention on cooperation and signed Memorandum of Cooperation and Understanding with some of these organizations. Furthermore, ICBC (Asia) Investment jointly worked with the Private Banking Department of ICBC (Asia) in securing the management of overseas asset and opening of special investment account for an ultra-high net worth customer in Middle East. Annual Report 31
Industrial and Commercial Bank of China (Asia) Limited Management s Discussion and Analysis Looking ahead in 2013, ICBC (Asia) Investment will put great efforts in its scope of business, customer base and sales channels in order to strengthen the development of asset management business. In terms of scope of business, it will categorize the public offering of funds, QDII products, QFII products, sovereign funds and products tailored for specific institutional customers by developing them into standardized and sophisticated product mix carrying the brand name, thus creating a product mix which is capable of achieving sustainable development. While keeping the existing customer base, ICBC (Asia) Investment will further seek expansion of customer base, explore new sales channels and form closer ties with ICBC Group so as to fully utilize the internal resources of the Group efficiently, expand the scale of operations steadily and increase profitability continuously. Credit Card Business In, the Bank has devoted great efforts in enhancing the development of credit card business. We have launched innovative products such as UnionPay Dual Currency Credit Card and a series of promotional activities. Core indicators such as the volume of cards issued, card spending, balance of accounts receivable and merchant acquiring turnover have achieved different levels of year-on-year increment. The volume of new cards issued increased by 16% when compared to the previous year. Card cancellation rate maintained at a low level and therefore the volume of cards in circulation increased by 16% year-on-year. Card spending and the balance of accounts receivable rose by 27% and 17% respectively. In respect of merchant acquiring business, the development of three major sales networks encompassing the branches, direct sales team and cooperation partners yielded remarkable results. We have witnessed a 29% growth in annual turnover from merchant acquiring business. The major breakthrough in the development of our credit card business in was the gradual separation of middle and back office operations so that credit card centre may focus on business development and marketing promotion. In the year ahead, the Bank will further strengthen marketing management and, in particular, utilize the potential strengths of branches, reinforce product innovation and promotional activities, with the goal of striving for rapid growth of card issuance business and achieving economies of scale. At the same time, the Bank will further optimize the acquiring system, increase the operation efficiency of three major networks encompassing the branches, direct sales team and cooperation partners and meet the continuous development of acquiring business. Renminbi Business Relying on the extensive business network and customer base of ICBC Group in Mainland, ICBC (Asia) provides the customers with distinctive cross-border products such as Renminbi trade finance, loans and cash management services. In, the income from our Renminbi business has recorded a substantial year-on-year increase and gradually becomes one of our major sources of income. For offshore Renminbi business, ICBC (Asia) aims at becoming an active market maker. In, the Bank became a member of London-Hong Kong RMB Forum and was also appointed by the Head Office as the Group s offshore Renminbi trading centre. At the same time, we keep an eye on innovative business segment such as Qianhai Shenzhen cross-border Renminbi loans, with a goal of building Renminbi business segment as an engine of continuous growth for ICBC (Asia). 32 Annual Report
Industrial and Commercial Bank of China (Asia) Limited Management s Discussion and Analysis Chinese Mercantile Bank Chinese Mercantile Bank has maintained a sound growth momentum in. According to the Hong Kong Accounting Standards, the annual net profit of Chinese Mercantile Bank in reached HK$890 million, representing an increase of HK$280 million or 44.59% when compared to. The net interest income grew by HK$510 million or 47.43% to HK$1.58 billion. Fee and commission income increased 63.89% to HK$210 million. As at 31 December, the total assets of Chinese Mercantile Bank amounted to HK$72.79 billion, up by 38.85% as compared to the end of. The balance of loans and deposits of customers amounted to HK$33.4 billion and HK$39.69 billion, which represented an increase of 30.15% and 28.73% respectively as compared to the end of. The relocation, transformation, renaming and removal of Guangzhou Branch and Shenzhen Branch of Chinese Mercantile Bank have been completed successfully in July and November, and full Renminbi business license was obtained at the same time. In July, the establishment of Chinese Mercantile Bank s branch in Shenzhen High Technology Park was approved by the Shenzhen office of China Banking Regulatory Commission. The performance of branch service and marketing ability were greatly enhanced. In September, the NOVA project of ICBC introduced by Chinese Mercantile Bank was officially activated, signifying that the information technology system upgrade of Chinese Mercantile Bank was put into implementation which laid the foundation of the enhancement of technological level and sustainable development of business. In future, Chinese Mercantile Bank will adhere to the pace of strategic adjustment of ICBC (Asia), its parent company, and continue to enhance the business integration and fully utilize the mutual advantages with ICBC (Asia) and ICBC, establishing a brand name with distinctive financial products and quality financial services, expanding the scale of operations and market share, thereby making a greater contribution to the overall development of the Group. Human Resources The Bank firmly believes that the key to success of an enterprise lies with its talented employees who are the most important assets for maintaining long-term competitiveness. All along, the Bank has been actively pursuing people-oriented corporate culture. Employees are encouraged to demonstrate their strengths and boost operational efficiency. In, the Bank has reinforced the internal and external recruitment system and campaign work. Internal promotion or transfer would be first considered to fill a vacancy and competitive remuneration was offered to competent staff with a view to meet the business needs during the continuous development of branches. The Bank will continue to nurture talented staff by means of vocational development so that employees are given the opportunity to make full use of their skills. In order to build and retain an efficient workforce and achieve our target of sustainable development, positive measures such as awards are granted to boost the morale of our staff. As at 31 December, the total number of our staff was 1,845. In the middle of, the Bank has commenced the optimization of job ranking and remuneration system. The aim was to establish a job ranking matrix that aligns with our operation strategy and market practice, as well as facilitating the continuous improvement of human resources management framework on the basis of job rank and performance-oriented remuneration system. Under the job rank and performance based remuneration system, various basic methods are proposed to provide a variety of incentives, increase the satisfaction of employees and optimize human resources management. The project has been implemented in January 2013. The migration of the old system to the new one will open up a path of optimal career development for our staff. Right people will be assigned to the right jobs and remuneration will be more competitive. Annual Report 33