The Industrial & Commercial Bank of China (ICBC) is the largest bank in the world by revenue; in 2021 it posted revenue of $209 billion, profits of $54 billion, and assets of $5.5 trillion. Personal banking was a particularly bright spot for the Beijing-based, state-owned bank in 2021, as the government eased up on lending restrictions as part of its economic stimulus.
The division accounted for nearly half of the ICBC’s total profits, as the bank attracted 23.4 million new customers, part of its concerted effort to reach more people across China, particularly in rural areas. The bank’s nonperforming loan ratio fell 16 basis points to 1.42%, a sign that fewer people had defaulted on their loans than in 2020.
ICBC’s strategy since 2021 has been to transform itself into a “customer-centric” business rather than strictly a commercial operation, a strategy that may prove savvy should China’s debt-addled property market continue to falter.