Fee and Commission income

The Bank’s net fee and commission income gained 110.4% from 2006 to Rmb 34.4 billion. Also net fee and commission income accounted for 13.4% of the total operating income in 2007.

Gains in the segment were mainly underpinned by growth in areas of asset custody, wealth management, electronic banking, bank cards and investment banking.

Growth in income from wealth management and asset custody topped 381% and 203% respectively, while growth in income from electronic banking, bank cards and investment banking reached 85%, 41% and 45% correspondingly.

Non performing loan improvement

The balance and ratio of non-performing loans decreased by Rmb 25,971 million and 1.05% to Rmb 111,774 million and 2.74%, respectively. The Bank has also implemented an active provisioning policy. The year-end allowance to NPL reached 103.50%, representing an improvement of 32.94 percentage points.

ICBC was not significantly affected by the US sub-prime crisis. As at the end of 2007, the Bank held US sub-prime residential mortgage backed securities of $1,226 million in terms of nominal value, all of which were first-lien mortgage backed securities with credit rating of AA.

At the end of the year 2007 the bank has maintained capital adequacy ratio of 13.09% and core capital adequacy ratio of 10.99%.

ICBC expansion

The bank is now focusing on emerging markets and ICBC completed the acquisition and re-launch of PT Bank Halim Indonesia and also opened a Moscow subsidiary bank. The Qatar Financial Centre Regulatory Authority also sanctioned the establishment of a Doha branch.

In addition, ICBC also purchased a 20% stake in Standard Bank Group in South Africa to become the single largest shareholder of Standard Bank and a 79.93% stake in Seng Heng Bank in Macau during the year.

Currently the Bank has 112 overseas branches and subsidiaries, and has established corresponding bank relationships with 1,349 banks in 122 countries and regions.

China government controlled entities MOF and Huijin control 70.6% in the bank. Goldman Sachs owns 4.9% in the bank followed by Allianz through its Luxembourg subsidiary of Dresdner Bank holds 1.9% and American Express owns 0.4%.