4 China’s Largest Banks- According to the annual report of 2021, there are four China’s Biggest Banks in 2021. These banks have extensive markets in China with many branches and customers. As a country that has biggest population in the world, around 1.4 billion people, this country has huge potential.
Along with Chinese economic reform led by Deng Xiaoping, from state ownership and central planning to market-oriented reforms, China can improve their economic conditions from time-to-time Gross Domestic Product (GDP). the private sector grows remarkably because of the permission of its citizen to do the business. Economically, until 2022, from the data of IMF, China still becomes the second-biggest country in GDP after United States of America. The China’s Gross Domestic Products is around $19.91 trillion.
With the condition of increasing of prosperity in China and huge population of this country, China still became the potential market to the company from domestic and foreign. Bank, by the way, is the financial institution that has extensive market in China. Many banks in China, but few of them has become the biggest bank in China. Here are the 4 China’s Biggest Banks in 2021. These data were obtained from Annual report from each company in 2021.
The Rank of China’s Biggest Banks in 2021 based on Assets
| Rank | Name of Company | Assets | Assets | Liabilities | Liabilities |
|---|---|---|---|---|---|
| Origin Currency | US Dollar | Origin Currency | US Dollar | ||
| 1 | Industrial and Commercial Bank of China | 35,171 Billion RMB | 5,275 Billion US Dollar | 31,896 Billion RMB | 4,784 Billion US Dollar |
| 2 | China Construction Bank Corporation | 30,253 Billion RMB | 4,537 Billion US Dollar | 27,639 Billion RMB | 4,145 Billion US Dollar |
| 3 | Agricultural Bank of China | 29,069 Billion RMB | 4,360 Billion US Dollar | 26,647 Billion RMB | 3,997 Billion US Dollar |
| 4 | Bank of China | 26,722 Billion RMB | 4,008 Billion US Dollar | 24,371 Billion RMB | 3,655 Billion US Dollar |
| Source : Annual report, 2021 | |||||
| Description : | |||||
| Origin Currency : Currency officially Used in Annual Report 2021 | |||||
| US Dollar = Currency from Origin Currency has been Converted into US Dollar | |||||
| Currency Rate : | |||||
| 1 Renminbi (RMB)= 0.15 US Dollar (USD) | |||||
The data above was obtained from Balance sheet of the bank in 2021. The balance sheet above can describe the financial positions. The bank with more assets than liabilities is in good position. With less liabilities, the bank can expand the business than focusing on pay back the loans or debts.
The Rank of China’s Biggest Banks in 2021 based on Net Income
| Rank | Name of Company | Revenue | Revenue | Net Income | Net Income |
|---|---|---|---|---|---|
| Origin Currency | US Dollar | Origin Currency | US Dollar | ||
| 1 | Industrial and Commercial Bank of China | 860 Billion RMB | 129 Billion US Dollar | 350 Billion RMB | 52 Billion US Dollar |
| 2 | China Construction Bank Corporation | 764 Billion RMB | 114.6 Billion US Dollar | 303 Billion RMB | 45 Billion US Dollar |
| 3 | Agricultural Bank of China | 721 Billion RMB | 108 Billion US Dollar | 241 Billion RMB | 36 Billion US Dollar |
| 4 | Bank of China | 605 Billion RMB | 90 Billion US Dollar | 227 Billion RMB | 34 Billion US Dollar |
| Source : Annual report, 2021 | |||||
| Description : | |||||
| Origin Currency : Currency officially Used in Annual Report 2021 | |||||
| US Dollar = Currency from Origin Currency has been Converted into US Dollar | |||||
| Currency Rate : | |||||
| 1 Renminbi (RMB)= 0.15 US Dollar (USD) | |||||
The data about Revenue and net income was obtained from Income Statement of the banks in Annual Report 2021. In the income statement, the business of the bank can be observed. The bank with net income showed the efficiency and effectively in doing the business from specific time.
Brief Description of China’s Largest Banks in 2021
1.Industrial and Commercial Bank of China
Industrial and Commercial Bank of China Ltd is China-based Bank found in Beijing in 1948. This Bank owned by Chinese Central Government with 70.82% of stake ownership. In 2021, this bank has collected the biggest revenue and Net income than the other Bank in the world. Until 2021, ICBC has 9.6 billion corporate customers and 704 million personal customers with “A” credit rating from S&P and Moody’s. Nowadays, this bank has total 434,089 employees, including 410,766 employees in the Head Office and domestic branches, 7,467 employees in domestic subsidiaries, and 15,856 employees in overseas office.
Financially, based on the annual report of ICBC in 2021, the bank has assets around 35,171 billion RMB/ 5,275 billion US Dollar and liabilities around 31,896 billion RMB/ 4,784 billion US Dollar. Based on the business performance in 2021, the company gained the revenue 860 billion RMB/ 129 billion US Dollar and successfully reaped net Income 350 billion RMB/ 52 billion US Dollar.
2.China Construction Bank Corporation
China Construction Bank Corporation (CCB) is another biggest bank in China and The World. Historically, it was founded in Beijing, China on 1 October 1954 and still has primary office in Beijing, China. Until 2021, this bank has Until 2021, this bank has 351,252 employees with 14,510 banking outlets. As of 2021, this bank has capitalization around US $175 billion.
Financially, in 2021, Based on Published Annual report by the Company, the company has assets around 30,253 billion RMB/ 4,537 billion US Dollar and liabilities around 27,639 billion RMB/ 4,145 billion US Dollar. Based on the business performance in 2021, the company gained the revenue around 764 billion RMB/ 114.6 billion US Dollar and reaped the net Income 303 billion RMB/ 45 billion US Dollar.
3.Agricultural Bank of China
Agricultural Bank of China (ABC), commonly known as AgBank, is one of the biggest banks from China. Historically, the establishment of Agricultural Bank of China was on July 10, 1951. Until now, this bank has primary office in Beijing, China. At the end of 2021, Agricultural Bank of China has collected 8.5963 million corporate banking customers with balance of domestic corporate deposits amounted to RMB8,037,929 million. Furthermore, this bank has employees around 455,174 people.
Financially, based on the annual report of Published company in 2021, the company has assets around 29,069 billion RMB/ 4,360 billion US Dollar with liabilities around liabilities 26,647 billion RMB/ 3,997 billion US Dollar. Based on the business performance in 2021, the company gained the revenue around 721 billion RMB/ 108 billion US Dollar and net income around 241 billion RMB/ 36 billion US Dollar.
4.Bank of China
Bank of China is the biggest and one of the oldest banks in China. Historically, it was founded in Beijing, China in 1912 by Chen Jintao. Nowadays, this bank has 306 thousand employees. Bank of China also has some foreign office branch in 62 countries and regions outside Chinese mainland. in 20220, the bank opens the Yangon Branch in Myanmar, Hanoi Representative Office in Vietnam and Geneva Branch in Switzerland.
Financially, the company has assets 26,722 billion RMB/ 4,008 billion US Dollar and liabilities around 24,371 billion RMB/ 3,655 billion US Dollar. Based on the business performance in 2021, the company gained revenue 605 billion RMB/ 90 billion US Dollar ane net income around 227 billion RMB/ 34 billion US Dollar.
Bibliography of Four China’s Largest Banks in 2021
International Monetary Fund. 2022. World Economic Outlook database: April 2022. accessed via https://www.imf.org/en/Publications/WEO/weo-database/2022/April/weo-report?c=924,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2022&ey=2022&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 on August 30th, 2022
Industrial and Commercial Bank of China. 2022. Annual Report 2021. Accessed via http://www.icbc-ltd.com/ICBCLtd/Investor%20Relations/Financial%20Information/Financial%20Reports/ on August 30th, 2022.
China Construction Bank Corporation. 2022. Annual Report 2021. Accessed via http://www.ccb.com/en/investorv3/annualreports/annals.html?ptId=6&ctId=1 on August 30th, 2022.
Agricultural Bank of China. 2022. Annual Report 2021. Accessed via https://www.abchina.com/en/investor-relations/performance-reports/annual-reports/ on August 30th, 2022.
Bank of China. 2022. Annual Report 2021. Accessed via https://www.bankofchina.co.id/en-id/top/about-us/financial-report/annual-report.html on August 30th, 2022.
