Bank of China

By: EconomyWatch   Date: 17 July 2010

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EconomyWatch

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Bank of China Limited (BOC) is a government owned bank in People's Republic of China. It is a global bank and runs financial operations in 27 countries including Canada, United Kingdom, Germany, Luxembourg, Panama, Republic of Korea, Taiwan, Singapore, Thailand, Cayman Islands and Kazakhstan. BOC ranks # 56 in 2008 Forbes Global 2000 list.
Bank of China is regarded as second largest lender in mainland China. It is 5th largest bank in world with respect to market capitalization. Bank of China is listed in Hong Kong stock exchange (SEHK: 3988).

Brief history
Bank of China was established in 1912 by Government of the Republic of China. It is China's oldest bank. Bank of China issued banknotes until 1942. BOC became a full commercial bank after 1948. Ownership of bank rested upon Central Hujin Investment and National Council for Social Security Fund (SSF)- a Chinese government arm until June 2006. Subsequent IPO changed this ownership structure with Central SAFE Investments Limited holding 69.265% of total shares. SSF holds 4.576% of shares. Rest of equity was distributed among private institutional buyers and retail buyers.

Products and services
Principal commercial operations of BOC include retail banking, corporate banking, financial institutions banking and treasury business. Treasury business of Bank of China include wealth management, fund management, value-secured debt business, domestic and foreign currency trading and investment and domestic and overseas financing.

Retail banking operations of Bank of China concentrates on individual customers. BOC offers services like consumer credit bankcard and savings deposit. Financial banking relates to security brokerages, insurance companies and fund companies. Custodian services and interbank lending services are also offered. BOC currently has over 10,000 domestic branches as well as 600 overseas branches.

Bank of China issues currency notes in Chinese Special Administrative Regions (SAR) of Hong Kong and Macau.

Financials
Net income of Bank of China is RMB 45,474 million (2007). It recorded a net profit of RMB 62,533 million. Total assets amounted to RMB 6,592,525 million. Capital adequacy ratio was 13.89% (2007).

Awards and recognition
Bank of China has won a number of awards. It was ranked 29th among top 1000 world banks by Banker magazine in 2004. It was awarded 'Best Bank in China' by Euromoney and Asset Magazine in 1992 and 2001.

Current financial crisis
Bank of China achieved a minimal adverse financial risk during 2008. This bank maintained its stable asset quality. Impaired loans amounted to RMB 87.144 billion. Enhanced risk monitoring has negated any further deterioration in financial conditions.



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