Outstanding Achievements of CCB Institutional Banking in 2004

Rapid Growth through Innovation

　　In 2004, China Construction Bank (CCB) was committed to exploration and innovation, strengthening business administration and risk management. And in this way, institutional banking scored a rapid growth. At the end of 2004, the total credit line for CCB institutional banking clients amounted to RMB 539.8 billion. CCB institutional banking clients deposits per day reached RMB 322.6 billion in 2004, an increase of RMB 14.373 billion or 4.7% over the previous year. The intermediary business income of institutional banking was RMB 109 million in 2004, quadrupling the income of 2003. CCB institutional banking achievements mainly came from the following aspects:

I Increased share of finance services as the agent. Finance service as the agent is CCB’s traditional business with its own advantages and strength and has   shaped a good brand image in the market. In 2004, CCB acted as the agent bank for 61 national departments and enterprise groups, with the settlement volume of RMB 60.545 billion in the whole year, accounting for 68% of all pilot organizations of Ministry of Finance.

II A major step towards acting as the agent for government entities. CCB actively tracked the reform of government administration mechanism, made lots of efforts in developing agency services to government entities in terms of taxes and fees payment. CCB’s agency services was expanded from taxation and custom entities to security bureaus, courts, inspection and quarantine bureaus, national resources institutions, education entities, transportation departments, etc. CCB signed an agreement with China National Registration of Product and Service Codes to become its first agent bank.

III Sound development of securities services. In view of weak stock market and increased risks, CCB made a timely adjustment on the market positioning and progressively transferred the business focus to  the fields such as separate custody as securities deposit bank, asset management and capital settlement for securities companies, etc to guarantee the sound development of CCB securities institutional banking business. CCB developed separate custody system for securities clients deposits and became the first commercial bank to offer this kind of services in China. And CCB has successfully conducted the separate custody as deposit bank for China Southern Securities, Hantang Securities, MF Securities and Fucheng Securities. Thus CCB clients deposits was increased substantially.

IV Strengthening products innovation. CCB engaged in products innovation and marketing in terms of credit asset transfer by integrating products in existence, and cooperation with other banks was effective and efficient. CCB established correspondent relations with 41 large-scale domestic banks in the whole year. The accumulated credit line authorized to customers stood at RMB 487.586 billion.  The callback work of fund borrowing and bill discount within the credit line was also sound.

V Great efforts in developing services to non-banking financial institutions. As the first bank to grant loans by using standard CDs as collateral, CCB actively negotiated the cooperation with emerging financial companies such as automobile financial businesses. CCB signed an agreement over the settlement network with Toyota Financial Service Corporation and became the first settlement bank since the establishment of automobile financial corporations in China. Non-banking financial intuitional banking has become a new profit growth point.