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FINANCE 2ND PROJECT
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<!DOCTYPE html PUBLIC "-//ABISOURCE//DTD XHTML plus AWML 2.2//EN" "http://www.abisource.com/2004/xhtml-awml/xhtml-awml.mod"><html xmlns="http://www.w3.org/1999/xhtml" xmlns:awml="http://www.abisource.com/2004/xhtml-awml/"> <head> </head> <body> <div> <p> </p> <p style="text-align:center"> <span style="font-size:18pt;font-family:'Times New Roman'">FIN-312 BANKING AND FINANCIAL INSTITUTIONS</span> </p> <p style="text-align:center"> <span style="font-size:18pt;font-family:'Times New Roman'">PROJECT</span> </p> <p> </p> <p> </p> <p> </p> <p> Images Not Shown</p> <span>Company Information</span> <p style="text-indent:36.000000pt"> <span style="font-size:12pt;font-family:'Times New Roman'">The Industrial and Commercial Bank of China was established in 1984 as a limited company. The institution is ranked as the largest lending organization in China. However, ICBC is the largest bank in the world regarding the net fixtures, clients, workers, loans, and savings. The bank is categorized under state-owned organization in the country. Industrial and Commercial Bank of China ventures into the finance, banking, and investment industries. The institution provides various services including credit cards, mortgages, private equity, insurance, financial facilities, customer banking, corporate banking, international finance management, and investment advice. The primary owner of the bank is the Chinese government with 70.82% holdings. Currently, the bank has employed at least 453, 048 employees who work in different branches.</span> </p> <p style="text-indent:36.000000pt"> <span style="font-size:12pt;font-family:'Times New Roman'">The corporate governance structure of the financial institution comprises of the chairman, president, BOD, and senior directors. The shareholders are top the individuals in the hierarchy of corporate governance. They are responsible for making critical decisions and changes to facilitate the success of the bank. Next is the structXXX XX the XXXXX of XXXXXXXXX and XXXXXXXXXXX. They delegate XXXXXX to the XXXXXX managers XXX oversee company operations on XXXXXX of the shareholders. XXX XXXXXXXXX governance system has different XXXXXXXXX XXX monitoring XXXXXXXXX, products, marketing, XXXXXXXXX, XXX XXXXXXX activities in XXX bank. XXX committee forward reports to XXX XXXXXX directors XXX assess XXXXX XXXXXXXXXXX and XXXX recommendations.</span> </p> <p> Images Not Shown</p> <p style="text-XXXXXX:XX.000000pt"> <span style="font-XXXX:XXXX;font-family:'XXXXX XXX XXXXX'">XXX XXXXXXX president XX XXX company XX Gu XXX XXX oversees XXX operations and employee XXXXXXXXXXX. The XXXXXXXXX ensures that XXX senior managers, departmental XXXXXXXXX, XXX committees incorporate the XXXXX presented XX the XXXXX XX directors. XXX financial XXXXXXXXXXX has 11 XXXXXXXXX and Shu is the executive. Besides, the board XXXXXXXXX XX the XXXX XX XXXX XXXXXXX.</span> </p> <span>XXXXXXXXX Summary</span><span>Total Assets</span> <p> </p> <p style="XXXX-indent:36.000000pt"> <span style="font-size:12pt;XXXX-family:'Times New XXXXX'">XXX XXX assets of XXX XXXXXXX have XXXXXXXXX from RMB 24, XXX, XXX XX XX, XXX, 916. XXX loans XXXXXXXX XX XXX clients XXXX XXXX XXX 13, 535, XXX to XX, 600, XXX in XXXX XXX XXXX XXXXXXXXXXXX. XXXXXXXXX, XXX XXXX XXXXX XXXXXXXXX to 4.38% from 4.XX%. Besides, ICBC increased its XXXXXXXXXXX from RMB X,135,XXX XX X,483,420. ICBC has reduced its lending XXXXX to other XXXXXXXXX XXXXXXXXXXXX XXX XXXXXXX XXXX. XXX XXXXXXX XXXXXX to other banks or economic XXXXXXXXXXXXX XXXXXXXXX XXXX XXX 1, 651, 391to 1, XXX,XXX. XXX assets XXXX XXXX increasing which XXXXXXXX a XXXXXXXX XXXXXXXXXXX for the XXXXXXXXX XXXXXXXXXXX.</span> </p> <span>XXX Income</span> <p style="XXXX-XXXXXX:XX.000000pt"> </p> <p style="XXXX-XXXXXX:XX.000000pt"> <span style="XXXX-size:12pt;XXXX-XXXXXX:'Times New XXXXX'">The total income of XXX bank increased XXXX RMS 246, 073 XX XXX, 532. XXX XXXXXX XXXXXXXXX XXX to rise in equity XXX debt instruments. Besides, XXX foreign XXXXXXXX transactions XXXXXXXXX the XXXXXX XX XXX bank.</span> </p> <p style="XXXX-indent:36.000000pt"> <span style="XXXX-XXXX:12pt;font-XXXXXX:'Times New XXXXX'">Therefore, the percentage XXXXXXXX of XXX XXXX’s net XXXXXX XX:</span> </p> <p style="XXXX-XXXXXX:36.000000pt"> <span style="font-XXXX:XXXX;XXXX-XXXXXX:'XXXXX New XXXXX'">326, 534-XXX,073/ XXX,XXX=32.69%</span> </p> <p style="text-indent:36.000000pt"> <span style="font-XXXX:XXXX;XXXX-family:'XXXXX XXX Roman'">The net income of ICBC XXXXXXXXX by 32.XX%</span> </p> <span>XXXXXXXX XXX Profitability</span> <p style="XXXX-indent:36.000000pt"> <span style="XXXX-size:12pt;font-XXXXXX:'XXXXX New XXXXX'">2018</span> </p> <p style="XXXX-XXXXXX:XX.XXXXXXXX"> <span style="XXXX-size:12pt;font-family:'XXXXX XXX Roman'">Net XXXXXXXX XXXXXX = XXX XXXXXXXX income/ Total XXXXXX</span> </p> <p style="XXXX-XXXXXX:XX.000000pt"> <span style="font-size:XXXX;XXXX-XXXXXX:'Times XXX XXXXX'">XXX, 518/ XX, 691,916 = X.XXX or X.X%</span> </p> <p style="text-XXXXXX:XX.XXXXXXXX"> <span style="font-XXXX:12pt;font-XXXXXX:'XXXXX New Roman'">Interest expense ratio= Net interest XXXXXXX/ Net XXXXXX</span> </p> <p style="XXXX-XXXXXX:XX.000000pt"> <span style="font-size:XXXX;XXXX-family:'Times XXX Roman'">XXX,576/26,691,XXX = 0.XXX or X.4%</span> </p> <p style="XXXX-XXXXXX:36.XXXXXXXX"> <span style="font-XXXX:12pt;XXXX-family:'Times XXX Roman'">Interest income ratio= XXXXXXXX income/ Net assets</span> </p> <p style="XXXX-indent:36.XXXXXXXX"> <span style="font-XXXX:12pt;XXXX-XXXXXX:'XXXXX New Roman'">948,XXX/ XX,691,XXX= 0.XXXX or 3.55%</span> </p> <p style="text-XXXXXX:36.000000pt"> <span style="XXXX-size:XXXX;XXXX-XXXXXX:'XXXXX XXX Roman'">XXXX</span> </p> <p style="text-XXXXXX:36.000000pt"> <span style="XXXX-size:XXXX;XXXX-XXXXXX:'Times New XXXXX'">XXX XXXXXXXX XXXXXX= XXX,078/ 26,087,XXX= X.XX or X%</span> </p> <p style="text-indent:XX.000000pt"> <span style="font-XXXX:12pt;font-family:'XXXXX New XXXXX'">Interest expense ratio= XXX,516/XX,087,XXX= X.013 or X.3%</span> </p> <p style="XXXX-indent:36.000000pt"> <span style="font-size:XXXX;font-XXXXXX:'XXXXX New Roman'">Interest income ratio=861,XXX/XX,087,043= 0.033 or 3.X%</span> </p> <p style="XXXX-indent:XX.000000pt"> <span style="font-size:12pt;XXXX-family:'XXXXX New XXXXX'">XXX net interest margin XX the XXXX XXXXXXXXX XXXX 2% to 2.X% in XXXX XXX 2018 XXXXXXXXXXXX. Besides, XXX interest expense XXXXX XXXXXXXXX XXXX 1.3% XX X.X% in XXX two consecutive years. The XXXXXXXX XXXXXX XXXXX XXXXXXXXX XXXX 3.X% to 3.55%.</span> </p> <p style="text-indent:XX.000000pt"> <span style="XXXX-XXXX:12pt;font-XXXXXX:'XXXXX XXX Roman'">= (152,603+ 2,XXX,163) / 27,699,XXX</span> </p> <p style="text-indent:36.000000pt"> <span style="font-XXXX:XXXX;XXXX-XXXXXX:'XXXXX New XXXXX'">= X.085 or X.5%</span> </p> <p style="XXXX-indent:XX.XXXXXXXX"> <span style="XXXX-size:12pt;font-XXXXXX:'Times XXX Roman'">=XXXXXXXXXX/ Non-interest income=XX,XXX/152,603=XX.2%</span> </p> <p style="text-XXXXXX:36.XXXXXXXX"> <span style="XXXX-size:12pt;font-family:'Times New Roman'">=Equipment XXXXXXX/ XXX-interest expense= 161,XXX/ 2,211,XXX=X.30%</span> </p> <p style="text-XXXXXX:XX.000000pt"> <span style="font-size:12pt;font-family:'Times New XXXXX'">The XXXXXXXXXX indicated a XXXXXXX in XXX following year. XXXXXXX, there XXX an XXXXXXXX in the equipment expense in the preceding period.</span> </p> <span>XXXXXXX</span> <p style="XXXX-indent:XX.000000pt"> <span style="font-size:12pt;font-family:'XXXXX New Roman'">=XXX XXXXX XXX XXXXXX/Total assets</span> </p> <p style="text-XXXXXX:36.XXXXXXXX"> <span style="font-XXXX:XXXX;XXXX-family:'Times XXX XXXXX'">=14, 600, XXX/27, 699,XXX</span> </p> <p style="text-indent:36.XXXXXXXX"> <span style="font-size:12pt;font-family:'XXXXX XXX Roman'">= 0.XX</span> </p> <p style="text-indent:XX.000000pt"> <span style="XXXX-XXXX:12pt;XXXX-XXXXXX:'Times New Roman'">XXX XXXX XXX a XXXX number of assets XXXXX XXXXXXXXX that it is optimizing funds by increasing buildings and XXXXXXXXX. However, the company needs to XXXXXXXX its funding XX acquire more XXXXXX XXX XXXX sufficient XXXX flow to avoid XXXXXXXX. XXX high value XX XXXXXX is XXXXXXXXXX to XXXXXXXXX XXX XXX XXXX XXXXXXXXXXX XXX to XXXX security. The company can compensate XXX shareholders, depositors, XXX investors after becoming XXXXXXXXX due XX XXX high assets XXXXX.</span> </p> <p> </p> <p> </p> <p style="XXXX-indent:36.000000pt"> <span style="font-XXXX:XXXX;font-XXXXXX:'XXXXX New Roman'">The figures present the ratios of loans that XXX bank issues XX the customers or other XXXXXXXXXXXX. The data indicates XXXX the XXXX offers XXXX XXXXX to XXXXXXXXXXXX which are 61% XX the XXXXX XXXXXXXXXXX. XXXXXXX, ICBC XXXXXXXX loans to XXXXXXXXXXX which occupy 36.X% of the gross XXXXXXXX. However, discounted bills XXX the least offered XXXXX amounting XX XXX 364,437 million.</span> </p> <span>Capitalization</span><span></span><span style="XXXX-size:XXXX;XXXX-XXXXXX:'Times New XXXXX'">Tier X XXXXXXXX XXXXX= Tier 1 XXXXXXX / XXXXX XXXXXXXXXXXX XXXXXX *XXX%</span> <p style="XXXX-XXXXXX:XX.XXXXXXXX"> <span style="font-XXXX:XXXX;font-family:'XXXXX XXX Roman'">= 2,232,033/ XX,699,540* 100%= 8.05%</span> </p> <span></span><span style="XXXX-size:12pt;font-family:'Times XXX Roman'">Total equity/ XXXXX XXXXXX</span> <p> </p> <p> <span style="XXXX-size:XXXX;font-XXXXXX:'Times New XXXXX'">XXX XXXXXX of equity XX XXXXXX XXXX XXXXXXXXX XXXX 8.XX to X.XX in XXXX XXX 2018 XXXXXXXXXXXX.</span> </p> <span></span><span style="XXXX-size:XXXX;XXXX-XXXXXX:'Times XXX Roman'">XXXXXXXX earnings XX total XXXXXX</span> <p XXXXX="list_paragraph" style="XXXXXX-left:54.000000pt" awml:style="List XXXXXXXXX"> <span style="font-XXXX:XXXX;XXXX-family:'Times New XXXXX'">= X,XXX,666 / X,344,XXX</span> </p> <p class="XXXXXXXXXXXXXX" style="XXXXXX-left:XX.XXXXXXXX" awml:style="List XXXXXXXXX"> <span style="font-size:12pt;XXXX-family:'Times New Roman'">= 0.5145</span> </p> <span>Growth</span><span></span><span style="XXXX-XXXX:XXXX;XXXX-family:'XXXXX New Roman'">XXXXX XXXXXX</span> <p> </p> <p style="text-indent:36.000000pt"> <span style="font-size:12pt;font-family:'Times New Roman'">The XXXXX XXXXXX of the XXXX increased from XXX 26,087,XXX XX XX,XXX,XXX in 2017 XXX 2018 XXXXXXXXXXXX. XXXX increased its XXXXXXXXX investments XXXX RMB 5,756,XXX XX 6,754,692 million in the XXX consecutive years. XXXXXXX, the bank increased XXX loans and XXXXXXXX to the XXXXXXX to RMB 15,XXX,XXX.</span> </p> <span></span><span style="font-XXXX:12pt;font-family:'XXXXX New Roman'">XXX equity</span> <p> </p> <p style="XXXX-XXXXXX:36.000000pt"> <span style="font-XXXX:XXXX;font-XXXXXX:'XXXXX XXX XXXXX'">XXXXX XXX a XXXXXXXXXXX XXXXXXXX in the XXX XXXXXX from RMB 2,XXX,XXX XX X,344,XXX in 2017 and 2018 respectively. XXX XXXX increased XXX reserves XXX XXXXXXXX earnings XXXXX influenced XXX XXXXXX XXXXXX.</span> </p> <span></span><span style="font-size:XXXX;XXXX-XXXXXX:'XXXXX XXX XXXXX'">XXX loans XXX leases</span> <p style="text-indent:XX.000000pt"> <span style="font-XXXX:XXXX;font-XXXXXX:'XXXXX New Roman'">The XXX loans XXX leases XX the bank rose from RMB XX,892,966 XX XX,046,132 in 2017 and XXXX XXXXXXXXXXXX. The increase in XXX XXXXX XXX leases XXX a XXXXXXXXXXXX XXXXXXXXX on the XXXXXXXXX performance XX the bank.</span> </p> <span>XXXX XXXXXXXXXX</span><span></span><span style="XXXX-XXXX:XXXX;XXXX-XXXXXX:'XXXXX New XXXXX'">XXXXXXXXX XXXX</span> <p> <span style="font-size:12pt;XXXX-XXXXXX:'Times New XXXXX'">=XXXXX XXXXX/ Total XXXXXX</span> </p> <p> <span style="XXXX-size:XXXX;font-XXXXXX:'Times XXX XXXXX'">= 15,XXX,XXX/ 27,699,XXX</span> </p> <p> <span style="font-XXXX:12pt;XXXX-family:'XXXXX XXX XXXXX'">= X.XXXX</span> </p> <span></span><span style="font-XXXX:12pt;XXXX-family:'XXXXX New XXXXX'">Credit XXXX</span> <p style="XXXX-indent:XX.000000pt"> <span style="font-size:XXXX;font-family:'XXXXX XXX Roman'">The bank has a low XXXXXX risk XXX it should increase XXX XXXXX to XXXXXXX XXX long-XXXX obligations XXX projects.</span> </p> <p> </p> <span></span><span style="font-XXXX:12pt;font-family:'XXXXX New Roman'">XXXXXXXXXX XXXX</span> <p> Images Not Shown</p> <p> </p> <p> </p> <p> </p> <p> </p> <p> </p> <span>References</span><span></span><a href="XXXX://www.icbc-XXX.com/ICBCLtd/XXXXXXXXX XXXXXXXXXX/Overview/"><span style="font-XXXX:XXXX;font-family:'Times New XXXXX'">http://XXX.XXXX-XXX.com/ICBCLtd/XXXXXXXXX%20Governance/XXXXXXXX/</span></a><span></span><a href="http://v.icbc.XXX.cn/XXXXXXXXX/XXXXXXXXX/XXXXXXX/download/2019/2018AnnualReport20190425.pdf"><span style="XXXX-XXXX:XXXX;XXXX-XXXXXX:'XXXXX New XXXXX'">http://v.icbc.com.cn/userfiles/Resources/XXXXXXX/XXXXXXXX/XXXX/XXXXXXXXXXXXXXXXXXXXXXXX.XXX</span></a><span></span><a XXXX="https://finance.XXXXX.com/XXXXX/XXXXX?XXX=X"><span style="XXXX-XXXX:12pt;XXXX-family:'XXXXX XXX XXXXX'">https://finance.yahoo.XXX/XXXXX/XXXXX?XXX=X</span></a> </div> </body> </html>">
