Industrial and Commercial Bank of China facts for kids

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Industrial and Commercial Bank of China

ICBC head office in Beijing
Native name	中国工商银行 Zhōngguó Gōngshāng Yínháng
Type	Public State-owned
Traded as	SSE: 601398 (A ordinary) SEHK: 1398 (H ordinary) SSE: 360011 (CNY Preference) SEHK: 84602 (CNH Preference) SEHK: 4603 (US$ Preference) SEHK: 4604 (€ Preference) Hang Seng Component
ISIN	ISIN: [https://isin.toolforge.org/?language=en&isin=CNE1000003G1 CNE1000003G1]
Industry	Financial services
Founded	1984; 41 years ago (1984)
Headquarters	Beijing , China
Key people	Liao Lin, chairman and president
Products	Finance and insurance, consumer banking, corporate banking, investment banking, investment management, global wealth management, private equity, mortgage loans, credit cards
Revenue	CN¥725.12 billion $105.4 billion (2018)
Operating income	CN¥369.32 billion $53.68 billion (2018)
Net income	CN¥298.72 billion $43.42 billion (2018)
AUM	CN¥6.9 trillion ≈ US$1.0 trillion (2022)
Total assets	CN¥27.70 trillion US$4.02 trillion (2018)
Total equity	CN¥2.33 trillion $338.7 billion (2018)
Owner	Chinese Central Government (70.82% voting rights) – Central Huijin Investment Co., Ltd (34.71%) – Ministry of Finance (34.60%) – China Securities Finance (1.23%) Temasek Holdings (2.44% voting rights) NSSF (2.43% voting rights) Others (24.31% voting rights)
Number of employees	434,798 (2022)
Capital ratio	12.87% (CET1)

Industrial and Commercial Bank of China

Simplified Chinese

中国工商银行股份有限公司

Traditional Chinese

中國工商銀行股份有限公司

Literal meaning

China Industrial and Commercial Bank, Company Limited by Shares

Transcriptions
Standard Mandarin
Hanyu Pinyin	Zhōngguó Gōngshāng Yínháng Gǔfèn Yǒuxiàn Gōngsī

Alternative Chinese name

Simplified Chinese

中国工商银行

Traditional Chinese

中國工商銀行

Transcriptions
Standard Mandarin
Hanyu Pinyin	Zhōngguó Gōngshāng Yínháng

Second alternative Chinese name

Chinese

工行

Transcriptions
Standard Mandarin
Hanyu Pinyin	Gōngháng

The Industrial and Commercial Bank of China (ICBC; Chinese: 中国工商银行) is the largest bank in China and in the world. It is measured by the total value of everything it owns, called its assets. ICBC was started on 1 January 1984. It grew out of the commercial banking parts of the People's Bank of China.

The Chinese government owns most of ICBC. This has been true even after the bank offered its shares to the public in 2006. By the end of 2021, the government controlled about 69.3% of the bank.

ICBC became the world's largest bank by assets in 2012. It has held this top spot ever since. In 2015, Forbes Global 2000 ranked it as the world's top public company. By the end of 2022, it was the third-largest bank in the world based on its market value. It is also one of the most profitable companies globally. The Financial Stability Board (FSB) considers it a "systemically important bank." This means it is so big that its failure could harm the entire financial system.

Some people who used to work at ICBC have gone on to hold important government jobs in China. For example, Yi Huiman became the Chairman of the China Securities Regulatory Commission. Pan Gongsheng became the Governor of the People's Bank of China.

How ICBC Started
Becoming a Public Company
- Initial Public Offering (IPO)
Recent Developments and Global Reach
- Expanding Around the World
- Cyber Attack in 2023
Environmental Efforts
ICBC's Subsidiaries
Leadership
Awards and Recognition
Images for kids
See also

How ICBC Started

Early Banking in China

After the Chinese Communist Revolution in 1949, China had a "monobank system." This meant that the People's Bank of China (PBC) handled all financial activities. In 1978-1979, China began to change its banking system. The PBC became a proper central bank, which manages the country's money supply. At the same time, new commercial banks were created. This led to a "two-tier banking system," with a central bank and separate commercial banks.

ICBC's Creation in 1984

In September 1983, the Chinese government decided to create a new organization. This organization would handle specific commercial banking tasks. So, on January 1, 1984, the Industrial and Commercial Bank of China (ICBC) was officially established. ICBC was the fourth specialized bank to be formed. It took over the "industrial credit and savings business" from the People's Bank of China. This allowed the PBC to focus on its role as a central bank. ICBC's main job was to manage deposits from people and businesses.

Growing Globally

ICBC opened its first branch outside China in Singapore in 1993. In 1999, it opened a branch in Luxembourg, which became its main office for Europe in 2011. In 2000, ICBC bought the Union Bank of Hong Kong and renamed it ICBC (Asia). This helped ICBC grow its business in Hong Kong.

In June 2005, ICBC started a joint company called ICBC Credit Suisse Asset Management in China. They worked with Credit Suisse First Boston and COSCO. By 2006, ICBC served 2.5 million business customers and 150 million individual customers.

Becoming a Public Company

Initial Public Offering (IPO)

Before ICBC offered its shares to the public, three big investors put money into the bank in April 2006. These "strategic investors" included Goldman Sachs, Dresdner Bank, and American Express. They invested a total of US$3.7 billion.

ICBC's shares were listed on both the Hong Kong Stock Exchange and Shanghai Stock Exchange on October 27, 2006. This was a very big event. It was the world's largest initial public offering (IPO) at that time, raising US$21.9 billion. An IPO is when a company sells its shares to the public for the first time. ICBC was also the first company to list its shares on both the Hong Kong and Shanghai stock exchanges at the same time.

On its first day of trading, ICBC's shares went up by almost 15% in Hong Kong. This showed strong interest from investors. Its market value reached US$156.3 billion, making it the fifth-largest bank in the world by value.

Recent Developments and Global Reach

Expanding Around the World

In July 2007, ICBC was ranked 30th globally based on its income. In August 2008, ICBC was allowed to open a branch in New York City, USA. This was a big step for a Chinese bank.

ICBC continued to open branches in many countries. On January 24, 2011, it opened an office in Madrid, Spain. In May 2011, it opened two branches in Pakistan, in Karachi and Islamabad. In November 2012, ICBC bought 80% of a bank in Argentina. This was the largest deal by a Chinese bank in Latin America. In Argentina, ICBC serves about 1 million individual customers and many businesses.

In 2013, during a difficult time with North Korea, ICBC stopped doing business with a North Korean bank. This bank was accused of helping to fund missile and nuclear programs.

In 2015, ICBC bought a bank in Turkey called TekstilBank. It renamed it ICBC Turkey. This helped ICBC grow its presence in the Middle East and Europe. ICBC also opened a branch in Kuwait City in 2014, becoming the first Chinese bank there.

In November 2016, ICBC received permission to accept deposits in Russia. In 2017, ICBC started using "robo-advisors" to help manage money for its customers. Robo-advisors are computer programs that give financial advice.

Cyber Attack in 2023

In November 2023, the US part of ICBC faced a ransomware attack. This type of attack involves hackers blocking access to computer systems until a payment is made. The attack was carried out by a group called Lockbit. It caused problems with some US Treasury trades, meaning the bank couldn't complete them right away. Other banks had to send their orders through different routes. Lockbit later said that ICBC paid the ransom.

Environmental Efforts

ICBC has shown interest in protecting the environment. In 2008, it became the first Chinese bank to adopt the Equator Principles. These are international rules for financial groups to make sure their projects are socially and environmentally responsible. ICBC also follows China's Green Credit Policy.

However, some environmental groups have criticized ICBC. They say the bank has not always followed its own environmental rules. For example, ICBC helped fund the Gilgel Gibe III Dam in Ethiopia, which has faced environmental concerns.

In 2021, ICBC and other state-owned banks received approval for a large "green fund." This fund, worth $13.6 billion, will support environmentally friendly projects. ICBC plans to invest 8 billion yuan in the National Green Development Fund. This money will help finance projects along the Yangtze River that are good for the environment.

ICBC's Subsidiaries

ICBC has many companies that it owns or controls, called subsidiaries. In mainland China, a major one is ICBC Credit Suisse Asset Management. Around the world, ICBC has subsidiaries like ICBC (Asia) in Hong Kong, ICBC (Macau), and ICBC Standard Bank in London. It also has ICBC (Europe) in Luxembourg, ICBC Turkey in Istanbul, and ICBC Argentina in Buenos Aires. There are also other important subsidiaries in countries like Thailand, Pakistan, Switzerland, Canada, USA, and Mexico. ICBC (Europe) S.A. has branches in major European cities like Paris, Amsterdam, Brussels, Milan, Madrid, Barcelona, Warsaw, and Lisbon.

Leadership

The bank has had several important leaders over the years:

Jiang Jianqing was president from 2000 to 2005, and then chairman from 2005 to 2016.
Yi Huiman was president from 2013 to 2016, and then chairman from 2016 to 2019.
Chen Siqing was chairman from 2019 to 2024.
Liao Lin has been president since January 2021 and chairman since February 2024.