Industrial Bank Co., Ltd.
SHSE-601166
Company Overview
Industrial Bank Co., Ltd. provides banking services in the People's Republic of China. The company's banking services include accepting deposits from the public; granting short-term, medium-term, and long-term loans; domestic and overseas settlement services; issuance of discount and financial bonds; acceptance bills and notes; agency issue and encashment; underwriting and trading of government bonds and debentures; trading of financial bonds; agency trading and trading of marketable securities except stock; asset custody business; and inter-bank lending and borrowings. It also trades in, settles, and sells foreign exchange, as well as provides bank cards; agency trading services; letters of credit and letters of guarantee; remittance and insurance agent services; safety deposit box services; financial advisory services; credit investigation, advisory, and attestation services; and other banking services. In addition, the company, through its subsidiaries, is involved in finance leasing, trust, fund raising and marketing, asset management, consumer finance, equity investment, and industrial investment; investment management, advisory, and consulting; and financial, business, and enterprise management consulting; financial data processing, commodity and financial futures brokerage, futures investment consulting, and economic information consulting; application software development and operational, and system integration services. Further, it engages in investment and assets management; acquisition, transfer, and disposal of bad debts of financial and non-financial institutions; issuance of wealth management products; wealth management consulting and advisory services; and other banking activities. Additionally, the company offers debit and credit card, and internet and mobile banking services. Industrial Bank Co., Ltd. was founded in 1988 and is headquartered in Fuzhou, the People's Republic of China.
Name
Industrial Bank Co., Ltd.
CEO
Jiajin Lyu
Website
www.cib.com.cn
Sector
Banks
Year Founded
1988
Company Statistics
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Bulls Say
CIB’s strength in its interbank and wealth-management businesses bodes well for fee income growth.
Compared with peers, CIB has better room to lower its funding costs by replacing high-cost interbank funding with retail deposits at a lower cost.
Recent investment in technology is likely to help CIB to improve efficiency in the future.
Bears Say
Given its higher-than-peer revenue contribution from financial investments, CIB’s earnings growth could be volatile and high returns are not maintainable.
Investors are concerned about CIB’s dividend stability, given the bank’s past earnings volatility and relatively weak capital position.
CIB has been investing heavily in technology and staffing for its strategic transition, which is likely to hurt profitability in the near term.