The history of the Industrial and Commercial Bank of China (ICBC) is a microcosm of China’s financial system reform. Since its spin-off from the People’s Bank of China (the central bank) in 1984, its development can be categorized into five key stages:
Phase 1: Establishment and Specialized State Bank (1984 – 1993)
This stage marked the beginning of “separation of government and banking” from the central bank.
- Background: To allow the People’s Bank of China to function exclusively as a central bank, the State Council established ICBC to take over the industrial and commercial credit and savings businesses formerly managed by the central bank.
- Key Milestones:
- January 1, 1984: ICBC was formally established.
- Positioning: As a specialized state-owned bank, it focused on financing urban industry and commerce to support national economic construction.
Phase 2: Transition to a State-Owned Commercial Bank (1994 – 2002)
With the establishment of China’s market economy, ICBC shifted from a “policy executor” to a “market competitor.”
- Background: Three policy banks were established to take over policy-based lending, allowing ICBC to focus on commercial operations.
- Key Milestones:
- 1994: Formally transitioned into a state-owned commercial bank, emphasizing independent operation and risk control.
- 2000: Acquired Union Bank of Hong Kong (later renamed ICBC Asia), marking the start of its international expansion.
- Key Policy: The 1995 Commercial Banking Law was enacted, legally establishing ICBC’s right to independent operation.
- Revenue Performance: Interest margins were wide, but book profits were unstable due to the burden of non-performing loans (NPLs).
Phase 3: Joint-Stock Reform and the “Listing of the Century” (2003 – 2006)
This was the most critical period of transformation, aimed at resolving non-performing loans (NPLs) and establishing a modern corporate governance system.
- Key Milestones:
- October 2005: Completed financial restructuring and officially established “Industrial and Commercial Bank of China Limited.”
- October 27, 2006: Achieved a simultaneous “A+H” dual listing in Shanghai and Hong Kong. It raised $21.9$ billion USD, setting the record for the world’s largest IPO at that time.
Phase 4: Globalization and Diversified Development (2007 – 2019)
Leveraging its massive capital post-listing, ICBC launched large-scale global expansion and diversified its business lines.
- Key Milestones:
- 2008: Became the world’s largest bank by market capitalization.
- 2013 onwards: Consistently ranked No. 1 on the Forbes Global 2000 and The Banker’s Top 1000 World Banks, earning the nickname “The Universe Bank.”
- Acquisitions: Acquired stakes in Standard Bank of South Africa (20%), Bank of East Asia (Canada), and others, expanding into asset management, leasing, and insurance.
- Key Policy: Implementation of the “Big Retail, Big Asset Management, Big Investment Banking” strategy.
- Revenue Level: In the decade following its IPO, ICBC maintained double-digit Compound Annual Growth Rates (CAGR). By 2012, it became the world’s largest bank by assets.
Phase 5: Modern Financial Enterprise & Digital Transformation (2020 – Present)
In a complex global environment, ICBC is now focused on risk prevention, serving the real economy, and digital evolution.
- Strategic Focus: Promoting “Smart Banking” (ECOS Project) and strengthening the application of Big Data and AI in financial risk management.
- Recent Activity: In October 2025, ICBC announced the acquisition and integration of Bank of Jinzhou’s operations, further demonstrating its leadership in risk resolution and market consolidation.
- Key Policies:
- Serving the Real Economy: Policy-guided increase in lending to manufacturing and Small and Medium Enterprises (SMEs/Inclusive Finance).
- Five Transformations: In 2024, ICBC formalized its focus on “Smart Risk Control, Modern Layout, Digital Drive, Diversified Structure, and Ecosystem Foundation.”
- Revenue Level: Growth has slowed to mid-single digits, but the quality of the structure has improved.
- 2024 Performance: Operating income of 842.35 billion RMB and net profit of 366.95 billion RMB.
Key Policies:
- Serving the Real Economy: Policy-guided increase in lending to manufacturing and Small and Medium Enterprises (SMEs/Inclusive Finance).
- Five Transformations: In 2024, ICBC formalized its focus on “Smart Risk Control, Modern Layout, Digital Drive, Diversified Structure, and Ecosystem Foundation.”
Revenue Level: Growth has slowed to mid-single digits, but the quality of the structure has improved.
- 2024 Performance: Operating income of 842.35 billion RMB and net profit of 366.95 billion RMB.
