Industrial Bank (China)
| Company type | Public |
|---|---|
| Industry | Banking, Financial services |
| Founded | August 26, 1988 in Fuzhou, Fujian, China |
| Headquarters | Fuzhou , China |
Area served | China |
| Products | Personal banking, Corporate banking, Institutional banking |
The Industrial Bank Co., Ltd. (), formally known as Fujian Industrial Bank Joint-Stock Corporation, Limited (), is a commercial banking institution based in Fuzhou, Fujian province, China. In the year 2023, it secured the 60th position on the Forbes Global 2000 list.
History
Founded on 26 August 1988 with authorization from the State Council of the People's Republic of China and the People's Bank of China, Industrial Bank was one of the earliest joint-stock commercial banks to receive such approval. On 3 March 2003, it adopted the name "Industrial Bank Co., Ltd." following a transition to a shareholding company structure.
The bank made its initial public offering on the Shanghai Stock Exchange on 5 February 2007 (Stock Code: 601166), with a registered capital amounting to RMB 10.786 billion.
By March 2012, Industrial Bank reported total assets of RMB 2.63 trillion, shareholders' equity of RMB 124 billion, and a net profit of RMB 8.29 billion for the first quarter. Its non-performing loan ratio stood at 0.40%. In The Banker magazine's 2011 "Top 1000 World Banks" ranking, it placed 75th by total assets and 83rd by tier 1 capital. The bank operated through 79 branches and 662 sub-branches.
Industrial Bank controls Industrial Financial Leasing Co., Ltd. and holds a majority stake in Union Trust Co., Ltd. Its headquarters-level divisions include Financial Markets Center, Credit Card Center, Retail Banking Headquarters, Private Banking, Assets Custody, Investment Banking, Futures Finance, Funds Finance, Trade Finance, and Sustainable Finance Centers located in Shanghai and Beijing.
As an early adopter of green finance initiatives in China, Industrial Bank implemented the Equator Principles in 2008 and has emphasized green finance since 2015. Environmental, social, and governance (ESG) criteria along with climate risk factors are embedded within its risk management framework. The bank has set a target to provide RMB 2 trillion (approximately $280 billion) in green loans to more than 55,000 corporate clients by 2025. As of September 2022, green loans amounted to RMB 571 billion (over $70 billion), making up about 11% of total lending, while overall green financing surpassed RMB 3 trillion ($420 billion) across roughly 20,000 projects.
Business Activities
Industrial Bank’s principal operations encompass:
Personal Banking
- Deposit accounts and credit facilities
- Domestic and international payment processing
- Safe deposit box services
- Credit card issuance
Corporate Banking
- Acceptance and discounting of bills
- Issuance of financial bonds
- Letters of credit and guarantees
- Insurance product distribution
- Payment collection services
- Bank card solutions
Institutional Banking
- Government bond agency services including issuance, redemption, underwriting
- Trading activities involving government and financial bonds
- Interbank placements and borrowings
- Foreign exchange trading agency operations
- Foreign currency settlement and sales
Ownership Structure
As of the stock listing date on 5 February 2007, the largest ten shareholders included:
| No. | Company | Shares Held | Percentage Ownership (%) |
|---|---|---|---|
| 1 | Financial Bureau of Fujian Province | 1,020,000,000 | 20.40 |
| 2 | Hang Seng Bank Limited | 639,090,000 | 12.78 |
| 3 | Tetrad Ventures Pte Ltd | 199,950,000 | 4.00 |
| 4 | China National Cereals Oils & Foodstuffs Corporation | 170,000,000 | 3.40 |
| 5 | International Finance Corporation | 159,960,000 | 3.20 |
| 6 | China Electronic Information Industry Group Corporation | 150,000,000 | 3.00 |
| 7 | Shanghai Baosteel Group Co., Ltd. | 145,000,000 | 2.90 |
| 8 | Fujian Tobacco Company | 133,333,334 | 2.67 |
| 9 | Shanghai Guoxin Investment & Development Co., Ltd. | 88,000,000 | 1.76 |
| 10 | Sept-wolves Investment Co., Ltd | 85,333,333 | 1.71 |
Controversies
In April 2022, Industrial Bank was identified as one of the Chinese financial institutions connected to a fraud scandal involving Lihe Jimin, a private lending firm. The total fraudulent sum surpassed CN¥210 million.