Industrial and Commercial Bank of China – ICBC
Founded as a limited company on 1 January 1984, ICBC is a state-owned commercial bank. With capital provided by the Ministry of Finance of China, the bank’s Tier 1 capital in 2013 was the largest of one thousand global banks, being the first bank headquartered in China to achieve this distinction in modern history.
Worlds No 1 Bank in 2022.
About ICBC
Industrial and Commercial Bank of China Limited is a Chinese multinational bank. Founded as a limited company on 1 January 1984, ICBC is a state-owned commercial bank.
Stock price: 4.77 CNY 601398 (SHA) 8 Jul, 2022 3:00 pm GMT+8 – Disclaimer
Headquarters: Xicheng District, Beijing, China
Founded: 1 January 1984, Beijing, China
Number of employees: 4,34,798 (2022)
Key people: Chen Siqing (Chairman); Gu Shu (CEO)
Subsidiaries: Industrial and Commercial Bank of China (Macau), MORE
Parent organization: Central Huijin Investment
Presidents: Shu Gu, Yi Huiman
Offical Website: http://www.icbc-ltd.com/icbcltd/en/
Preconditions of ICBC 1948–1979
From 1948 the mono-banking system of China was the People’s Bank of China, providing both policy lending, and, operations to the commercial sector. During 1978 to 1979 banking reform was initiated by the government of China, with the express desire of bringing into existence a central bank accompanying four total central governmentally owned specializing banks, one of these four being ICBC.
ICBC on 1979 to 1985
A Two-Tier banking system was made.
ICBC in 1984–2005
By rights of a contradiction within the economic functioning of the government of China, the People’s Republic, the State Council of China, during September of 1983 made a decision to separate certain activities of the government to an exclusively operating organisation, subsequently named the Industrial and Commercial bank of China, established on 1 January 1984. [non-primary source needed] ICBC was then the fourth of the four specialist banks of 1978–1979 to be made, from the taking of control of commercial activities (industrial credit and savings business) from People’s Bank of China so that the latter might be transformed to a newly made central bank.
ICBC in 2006 to 2008
Customer base
2.5 million corporate customers and 150 million individual customers in 2006.
IPO Initial Public Offer
On 28 April 2006, three “strategic investors” injected US$3.7 billion into ICBC:
- Goldman Sachs purchased a 5.75% stake for US$2.6 billion, the largest sum Goldman Sachs has ever invested
- Dresdner Bank (a wholly owned subsidiary of Commerzbank) invested US$1 billion.
- American Express invested US$200 million.
ICBC was simultaneously listed on both the Hong Kong Stock Exchange and Shanghai Stock Exchange on 27 October 2006. It was the world’s largest IPO at that time valued at US$21.9 billion, surpassing the previous record US$18.4 billion IPO by Japan’s NTT DoCoMo in 1998. In 2010, Agricultural Bank of China broke ICBC’s IPO record when it raised $22.1 billion. China’s largest commercial bank was also the first company to debut simultaneously on both the Hong Kong and Shanghai stock exchanges.
CBC raised at least US$14 billion in Hong Kong (H-shares) and another US$5.1 billion in Shanghai (A-shares). Due to heavy subscriptions, the greenshoe (i.e. over-allotment) placements were exercised and ICBC’s take rose to US$21.9 billion (17% of ICBC’s market value before the IPO), divided in US$16 billion in Hong Kong and US$5.9 billion in Shanghai. Following the global offering, the free float of shares was 22.14% of the market capitalization.
July 2007 ICBC was ranked 30th in the world in terms of revenue.
Foreign activity
n August 2008, ICBC became the second Chinese bank since 1991 to gain federal approval to establish a branch in New York City. ICBC had signed a lease with the Trump Organization for office space in the Trump Tower in 2008. ICBC was Trump Tower’s largest office tenant as of 2012.
On 24 January 2011, ICBC opened a branch office in Madrid, Spain.
On 20 May 2011, Industrial and Commercial Bank of China Ltd. established two branches in Pakistan, one in Karachi, the other in Islamabad. On 18 August 2011, ICBC passed the examination from State Bank of Pakistan and started its business in Pakistan.
During November 2012, ICBC acquires a 80% stake (valued at $600 million) of Standard Bank Argentina, the largest operation of a Chinese bank in Latin America. In Argentina, the bank has ~1,000,000 individual customers, ~30,000 companies of all categories and more than 1600 corporate companies.
During the 2013 Korean crisis, the Industrial and Commercial Bank of China halted business with a North Korean bank accused by the United States of financing Pyongyang’s missile and nuclear programs.
It was announced at the end of July 2013 that South Africa’s Standard Bank was in talks to sell its markets business in London to the Industrial and Commercial Bank of China for more than $500 million.
On 24 September 2014, ICBC Kuwait Branch officially opened in Kuwait City, capital of Kuwait. As the first and currently the only Chinese bank in Kuwait, the establishment of ICBC Kuwait Branch ended the history of no Chinese bank’s presence in Kuwait. Meanwhile, it is also the fourth branch of ICBC in the Middle East, following branches in Dubai, Abu Dhabi and Doha.
As of 2 December 2014, ICBC is ranked the largest bank in the world by assets and by tier 1 capital.
On 25 May 2015, the Company further strengthened its presence in the Middle East and Europe by purchasing[37] Turkey’s TekstilBank and forming its ICBC Turkey subsidiary.
On 17 February 2016, the Spanish Guardia Civil raided the offices of ICBC in Madrid, Spain, investigating suspicions of money laundering.
On 18 November 2016, the bank obtained a license to take deposits in Russia.
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