About Ping An Bank
Ping An Bank Co., Ltd. (abbreviation: PAB; stock abbreviation: PAB; stock code: 000001) was formed after the merger of former Ping An Bank Co., Ltd. by former Shenzhen Development Bank Co., Ltd. through absorption. PAB, headquartered in Shenzhen, was China’s first national joint-stock commercial bank that issued shares to the public and was publicly listed. Ping An Insurance (Group) Company of China, Ltd., together with its subsidiaries, hold in total approximately 59% of PAB’s shares and therefore is the controlling shareholder of PAB.
Adhering to the “customer-oriented (externally) and people-oriented (internally)” philosophy, PAB continues to “change, innovate and develop”, steadily promoting strategic transformation, constantly optimizing framework mechanisms, fully implementing a business-unit system, driving business developments on “four wheels” (corporate banking, retail banking, interbank trading and investment banking) and building the four characteristics of “specialization, intensification, integrated finance and internet finance”, hence blazing a “different” way of development.
As at the end of December 2014, PAB’s total assets amounted to RMB2,186.459 billion, representing a growth of 15.58% from the beginning of the year; balance of all deposits was RMB1,533.183 billion, representing an increase of RMB316.181 billion or 25.98% from the beginning of the year which was 1.6x that through the previous year, being a growth ahead of peers leading to an increase in market share; balance of all loans (including discounted bills) broke the thousand billion yuan level to reach RMB1,024.734 billion, up by 20.94% from the beginning of the year; operating income was RMB73.407 billion, representing a year-on-year growth of 40.66%, of which net non-interest income increased by 77.04% year on year to RMB20.361 billion; operating profit before provisions was RMB41.257 billion, up by 53.69% year on year; net profit grew 30.01% year on year to RMB19.802 billion; when calculated 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 10.86%, a Tier 1 capital adequacy ratio of 8.64% and a core Tier 1 capital adequacy ratio of 8.64%, which met the regulatory standards.
For the corporate business, PAB continues to build barriers for competitors on its three major competitive advantages in terms of “innovation, efficiency and IT”, giving full play to the traditional advantages of the trade finance business and intensifying innovation-oriented marketing development paths to promote a healthy and stable growth in business; makes use of scientific and technological means to deepen the integration of industry and finance, develop the edge in supply chain finance and fully construct the integrated internet finance service platform “Orange E Network” for corporate clients; conforms with the e-commerce trend in the real economy by acquiring customers batch by batch through group collaboration, cartel, business alliance and e-government alliance for guiding the development of internetization in the corporate business; fully demonstrates the onshore-offshore linkage advantages oriented to customer demand relying on the offshore banking business license to provide Chinese “go-global” companies with all-around financial services, such as settlement, trade financing, loan, investment and M&A; and dedicates efforts to build an offshore financial brand of Ping An, striving to become the best provider of offshore financial service and a leader in cross-border financial service. For the small enterprise business, aiming at satisfying the business needs of customers and the demand for bank transformation, with “Dai Dai Ping An” corporate card as the platform, PAB has built a business model for small enterprise finance integrating the features of standardization, intensification, integrated finance and internet finance to realize downward customer penetration and business structural adjustment, hence winning first-mover opportunities for transformation and development to achieve sustainable growth.
In 2014, PAB’s retail business unit pushed forward reform of the business unit with focus on “specialized operation and authorized management”. Leveraging the edge of Ping An Group in integrated finance, PAB’s retail banking business had a large number of quality customers, a network of “communitized, intelligentized, networktized and specialized” platforms, fully-licensed products and channels as well as other resources and, relying on the business unit management model, further tamped the base of retail banking. The size of individual customer assets exceeded RMB500 billion, an increase of 38% from the beginning of 2014; the number of wealth management customers and up-to-standard private banking customers grew rapidly; the performance of new products was excellent and we were awarded with the grand prize for “China’s Best Structural Product Issuer” by the world’s well-reputed magazine Euromoney, gaining momentum for developing the credit business; good results in the innovation of product development was achieved and the project for credit asset securitization of small consumer loans at the exchange became the industry’s first innovative product listed on the exchange; private banking, community finance, direct banking and other new channels developed speedily and features of internet finance emerged; the mobile bank “Pocket Bank” and the direct bank “Ping An Orange” has become important internet business platforms and the new model for community financial services “Pocket Community” a major platform for tapping customer and market sub-segments; the credit card, automobile finance, consumer finance and private banking businesses continued to grow steadily.
For the treasury and interbank business, on the basis of keeping risk in strict control and ensuring compliance operation, PAB actively transforms its mode of development to demonstrate the Group’s integrated financial advantages and continuously explore new products, models and channels in consistency with the idea of interest rate marketization and internet finance, hence driving a qualitative growth in business size. In 2014, PAB successfully launched the “Gold Bank” brand and innovatively introduced the new concept of “Gold Account”, forming a specialized gold assets management account integrating investing and financing, in-kind service, saving, financial management, trading, hedging and other functions; established the “Options Expert” brand to seize first-mover opportunities in the market which drove the rapid growth in foreign exchange derivative transactions made on behalf of clients; upgraded the Hang E Tong integrated financial service platform for the formal launch of the 2.0 upgraded version and established an integrated financial mall for peers integrating customer management, product distribution and data mining to create a smart platform for product interoperability, institutional interconnection and drainage opening.
For the investment banking business, counting on the integrated financial platform of Ping An Group, PAB is customer-oriented with an eye on industry funds, bond underwriting, capital markets, assets securitization and other business areas targeting the resource sector, the real estate sector, the platform sector, strategically emerging industries as well as high-end alternatives in building high-yield and low-risk investment banking product lines with controllable risks and costs to achieve growth along with the customers. The four major platforms of investment banking, asset management, custody service and integrated development has formed a benign operating system and that sector and product business units have joined forces through collaboration and cooperation, providing customers with investing and financing solutions and comprehensive services.
PAB continues to improve its corporate governance structure and enhances its scientific decision-making capabilities. PAB is active in introducing modern human resources management practices and was the first in China to establish a vertical accounting, credit and audit management system for the overall strengthening of risk control, hence assets quality remains stable and regulatory indicators are in line with requirements.
PAB actively fulfills and implements the values and standards as well as codes of conduct of corporate social responsibility, upholding operation in good faith and conformance, safeguarding customer interests, providing the community with quality financial products and services, protecting the legitimate rights and interests of employees, paying attention to environmental protection, being enthusiastic in charity, sparing no efforts to give back to the community and striving to become a qualified corporate citizen.
In the recent years, PAB won honours including “Best Joint Stock Bank of the Year”, “Top 100 Listed Companies Most Respected by Investors”, “Best Bank in Supply Chain Financial Service”, “Best Small and Medium Corporate Bank”, “Most Innovative Bank”, “Award for Best Corporate Social Responsibility” and “China’s Most Respected Chinese-funded Bank”.
Going forward, PAB will firmly follow the strategic direction of the “Five-Year Plan”, relying on the integrated financial platform of Ping An Group and aiming at providing customers with a comprehensive integrated finance service experience characterized by one customer, one account, multiple products and one-stop service in building the core strengths of integrated finance and, tallying with the development trends of the internet era, actively innovating products and business models to create greater value for customers, employees, shareholders and the community with differentiated service, sound management and excellent performance!