Beijing Bank on fast growth track
Beijing Bank has issued the Social Responsibility Report upon the first anniversary of its registration in the stock exchange market. Yan Xiaoyan, President of Beijing Bank, expressed that Beijing Bank had been devoted into fulfilling its social responsibility and participating in the establishment of harmonious society for the whole year since its registration on the stock exchange market. In its future development, Beijing Bank will take serious consideration upon the investors and the market as its responsibility and further advance the harmonious integration of the value of the company, return for the shareholders, interest of the customers and the future of the employees, and ultimately reach the harmonious development between the company and the community.
Following the successful registration in the stock exchange market, a second branch bank out of Beijing was established in Shanghai in Oct. 28th, 2007, which marked its entrance into the Changjiang River Delta and its participation into the construction of the international finance center. Mar. 28th 2008, Beijing Bank Xi’an Branch was established in service for the development and prosperity of the central cities of China; Aug. 28th 2008, Beijing Bank Shenzhen Branch started tryout and will be officially operating on Sep. 22nd; Beijing Bank Hangzhou Branch has already been approved for establishment. The acceleration of regional distribution will inject new incentive into the development of Beijing Bank.
During the year since its registration in the stock exchange market, the rate of non-performing loans has dropped from 3.34 percent to 1.74 percent, and the provision coverage ratio has increased to 141 percent, up more than 40 percent, which renders a qualitative improvement on the assets as well as dramatic improvement on the control of risks. At the same time, Beijing Bank has issued the standard credit card as a new product, the subscription of which has exceeded 12,000 pieces in just two months; Beijing Bank has also promoted the supply chain finance service brand, “fund chain” and the intellectual mortgage loan products; it held the large, original cultural financial product promotion event; in 2007, Beijing Bank has officially acquired the approval for security regulation, which officially initiated the business of security regulation and rendered it the first city business bank in China thus approved.
In the first semester of this year, Beijing Bank reached a net revenue without interest of RMB 414 million yuan, a growth of 147.5 percent compared to the same period last year; together with large increase from the intermediate businesses as well as an increase of 45 percent loans to middle and small businesses in comparison to the beginning of the year.
In the first year the total capital of Beijing Bank has increased by 38 percent, and the deposit and loan balances has increased by 26 percent and 29 percent respectively, which is a significant development of its business; the ratio of capital adequacy increases from 13.23 percent of the beginning of the year to 19.14 percent, the profit of capital increases from 0.82 percent to 1.62 percent, which has arrived the excellent level of the banks that are listed in the stock exchange market.
In the first half year of 2008, Beijing Bank has realized a net profit of RMB2.9 billion yuan, up 121 percent in comparison with the same period of the last year, and has ranked No.1 among the listed banks in terms of the profitability per capita and cost control level.
As suggested by the Social Responsibility Report of Beijing Bank, to further understand the needs of the customers, Beijing Bank developed a CRM system that integrates a variety of customer information based upon the traditional model; in combination with the system, the bank is capable of providing personalized products and services to customers. With regard to services, Beijing Bank provides a variety of value added services such as business consulting, health conference, Children Care Instruction events as well as capital management saloon; with regard to the products, the bank incessantly strengthens the development of new products in pursuit of high quality bank products; it promoted financial service brands such as “Xinxi” personal wealth management, migrant worker cards, financial service brand “Fortune 1+1” for companies and financial products for middle and small businesses “Little Giant”; all the variety of the products are very singular and very popular in the customers; with regard to the establishment of the network, Beijing Bank has gradually established a well rounded highly efficient distribution network combining Fortune Center, Community Banks, E-Banks, Self-service Banks and traditional banks to satisfy the diversified customer needs by optimizing the net distribution, increasing the functions of e-banks and telephone banks, and promoting the community banks.
Beijing Bank strives to “activate the encourage system, release the impetus for the development”, and has gradually explored an effective institution for introducing, training, selecting and using human resources, and acquired an institute of open competition and elite selection and utilization. At the same time, through comprehensive training programs, Beijing Bank helps its employees develop rapidly; through the harmonious working environment, the business culture based upon humanity has been established.
Till the end of 2007, Beijing Bank has returned tax of a total of over RMB 630 thousand yuan, and donated more than RMB 20 million yuan through various methods.
Beijing Bank is the first city commercial bank that externally issued Social Responsibility Report in 2007. Yan Xiaoyan stated that as a bank with the awareness of social responsibility, Beijing Bank will stick to its integrity in operation, focus on its social responsibility and bear its mission of “creating value for its customers, creating revenue for its shareholders, creating future for its employees, creating fortune for the society” to strive for the harmonious development between the bank and the society.