About Ping An Bank
Ping An Bank (abbreviation: PAB, stock abbreviation: PAB, stock code: 000001) was formed after the merger of former Shenzhen Development Bank Co., Ltd. and former Ping An Bank Co., Ltd. through absorption. PAB, headquartered in Shenzhen, was China’s first national joint-stock commercial bank offering shares to the public for trading. Ping An Insurance (Group) Company of China, Ltd., together with its subsidiaries, hold in total approximately 6.734 billion shares or approximately 59% of the total share capital of PAB and is therefore the controlling shareholder of PAB.
Adhering to the “customer-oriented (externally) and people-oriented (internally)” philosophy, PAB continued to “reform, innovate and develop”, steadily promoting strategic transformation, constantly optimizing framework mechanisms, driving business developments on “four wheels” (corporate banking, retail banking, interbank trading and investment banking) and vigorously building the four characteristics of “specialization, intensification, integrated finance and internet finance”, hence blazing a “different” way of development.
As at the end of June 2014, PAB’s total assets amounted to RMB2,136.475 billion, representing an increase of 12.94% from the beginning of the year; total deposits were RMB1,508.904 billion, representing a growth of 23.99% from the beginning of the year; total loans (including discounted bills) were RMB938.227 billion, up by 10.73% from the beginning of the year. As at the end of June 2014, PAB achieved net profit of RMB10.072 billion and operating profit before provisions of RMB18.997 billion, representing a year-on-year increase of 33.74% and 52.02% respectively. Pursuant to the “Measures for the Management of Capital of Commercial Banks (Trial)” of China Banking Regulatory Commission, PAB recorded a capital adequacy ratio of 11.02%, a Tier 1 capital adequacy ratio of 8.73% and a core Tier 1 capital adequacy ratio of 8.73%, meeting the regulatory standards.
As at the end of June 2014, PAB had a network of 566 outlets under 38 branches across 47 cities in China. As a result, a full coverage of Northeast China, North China, East China, South China, Central China, Southwest China and Northwest China has been basically formed, and agency relationship with more than 2,000 domestic and foreign banks in various countries and regions has been established through representative offices in Hong Kong.
For corporate business, PAB continues to build competitor barriers on its three major advantages in terms of “innovation, efficiency and IT”, giving full play to the traditional advantages of our trade finance business and deepening paths toward the development of innovation-oriented marketing to promote healthy and stable business growth; make use of technological means to achieve an in-depth integration of industry and finance for the development of supply chain finance advantages and the full-swing construction of “Orange e Network” (an integrated online financial service platform for corporate clients); in concert with the trend of e-commerce in the real economy, acquire customers in bulk through group synergy, peer alliance, business coalition and political union in guiding the development of internetization of the corporate business; bring the advantages of our offshore business license into play in developing new product portfolios to extend the end of supply chain finance to overseas, hence providing companies “going global” and worldwide customers with one-stop services, such as settlement, financing, etc. For small enterprise business, PAB provides clients with financing, settlement, foreign exchange, cash management, financial planning and other financial services on our three major characteristics of abundant products, high efficiency and quality service. PAB launched the innovative “Dai Dai Ping An” business card to create a multi-functional integrated financial platform covering payment, settlement, loan, financial management and insurance for micro and small business clients, which has effectively facilitated the growth of micro and small enterprises.
For retail business, in the first half of 2014, PAB completed the first phase of reform on our retail business division, successfully building a customer migration platform which has improved our management capacity and highlighted our integrated finance characteristics; the pace of channel construction was constantly accelerated; the number of wealthy customers and the assets of clients increased steadily; credit card, auto finance, consumer finance and private banking businesses grew stably. All these were efforts aiming at creating a “different” PAB. Our core competitiveness in the retail business are mainly reflected in the following four aspects: massive and quality customer resources of Ping An Group’s subsidiaries and our bank, network resources of our “community-based, intelligent, networked and specialized” platform, product and channel resources brought forth by the advantages of our full integrated finance license as well as our divisional system management model characterized by professional operation and delegation management.
For treasury and interbank business, PAB is active in transforming our mode of development, innovating products and models, adjusting business structure and strengthening risk management on the basis of upholding stringent risk control. “Hang E Tong”, a major online platform for interbank cooperation, was officially put into operation in July 2013 and more than a hundred institutions have participated. This has laid a solid foundation for the further development of a stable source of interbank liabilities. Supported by the advantages of a full gold business license, PAB launched the precious metals brand “Ping An Gold” for the first time in the industry with the aim of building gold banking, which has led to the continuous expansion of market presence in the area of gold trading, gold consignment, gold leasing and other featured products. PAB is actively engaged in the financial service business, continuously enriching our financial product lines with diversification in currency and investment as well as a balance between risk and return.
For investment banking business, with the support of Ping An Group’s integrated financial platform, PAB is customer oriented with an eye on the money, stock and bond markets targeting sectors and areas such as resources, real estate, platform, strategic emerging industries and high-end alternatives in building high-yield and low-risk investment banking product lines with controllable risks and costs in order to grow side by side with clients. A well-operating system for the four major platforms of investment banking, asset management, custody and comprehensive development has been formed, making use of forces gathered from collaborations between industry and product divisions to provide clients with investment and financing solutions as well as comprehensive services.
PAB continues to improve our corporate governance structure and enhance our capability for a scientific decision-making approach. Actively introducing modern human resource practices, PAB was the first in China to establish a vertical management system covering accounting, credit and audit for the overall strengthening of risk control and thus the quality of assets has been maintained.
PAB actively fulfills and implements the values and codes of conduct for corporate social responsibility, upholding integrity and compliant operation as well as safeguarding customer interests with the aim of providing the community with quality financial products and services, protecting the legitimate rights and interests of employees, paying attention to environmental protection, taking an active role in charity, sparing no efforts to give back to the community and striving to become a qualified corporate citizen.
In the past two years, PAB received honours including the “Best Bank in Supply Chain Financial Service”, the “Best Bank for SMEs”, the “Wealth Management Bank with Excellent Competitiveness”, the “Most Innovative Bank”, the “Joint Stock Commercial Bank of the Year”, the “Award for Best Corporate Social Responsibility” and the “Most Respected Chinese-funded Bank in China”.
Going forward, PAB will firmly follow the strategic direction of the “Five-Year Plan” relying on the integrated financial platform of Ping An Group with the aim of providing clients with all-around integrated financial service experience characterized by the concept of “one client, one account, multiple products and one-stop services” for building core strengths in integrated finance. In concert with the development trends of the internet age, PAB will introduce innovative products and business models on our differentiated service, sound operation and outstanding performance to create greater value for clients, employees, shareholders and the community.