Xiamen International Bank Co., Ltd. Annual Report 2017

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Xiamen International Bank Co., Ltd. Annual Report 2017 Xiamen International Bank Co., Ltd. Annual Report 2017 Xiamen International Bank Co., Ltd. Annual Report 2017 Important Notes The Bank's Board of Directors, Board of Supervisors, directors, supervisors, and senior management hereby declare that this report does not contain any false records, misleading statements or material omissions, and they assume joint and individual responsibilities on the authenticity, accuracy and completeness of the information herein. The financial figures and indicators contained in this annual report compiled in accordance with China Accounting Standards, unless otherwise specified, are consolidated figures calculated based on domestic and overseas data in terms of RMB Official auditor of the Bank, KPMG Hua Zhen LLP (special general partnership), conducted an audit on the 2017 Financial Statements of XIB compiled in accordance with China Accounting Standards, and issued a standard audit report with unqualified opinion. The Bank’s Chairman Mr. Weng Ruotong, Head of Accounting Affairs Ms. Tsoi Lai Ha, and Head of Accounting Organization Mr. Zou Zhiming, hereby ensure the authenticity, accuracy and completeness of the financial report contained in this annual report. Notes on Major Risks During its operation, the Bank has taken measures to effectively manage and control the various kinds of operational risks, including credit risks, market risks, operation risks, liquidity risks, compliance risks, country risks, information technology risks, reputation risks, etc..Relvant information please refer to Chapter 2, Discussion and Analysis of Business Conditions. Forward-looking Risk Statement This Report involves several forward-looking statements about the financial position, operation performance and business development of the Bank, such as “will”, “may”, “strive”, “endeavor”, “plan to”, “goal” and other similar words used herein. Such statements are based on current plans, estimates and forecasts and they do not constitute substantial commitment of the Bank. Please maintain adequate awareness of risk and understand differences among plans, forecasts and commitments. 1 Xiamen International Bank Co., Ltd. Annual Report 2017 Table of Contents Important Notes ................................................................................................................ 1 Definitions ........................................................................................................................ 3 Chairman’s Statement ...................................................................................................... 4 President’s Report ............................................................................................................ 6 Chapter I Company Profile and Major Financial Indicators ............................................ 8 Chapter II Discussion and Analysis of Business Conditions ....................................... 19 Chapter III Changes to Capital Stock and Shareholders ................................................ 59 Chapter IV Overview of Directors, Supervisors, Senior Officers and Employees ...... 622 Chapter V Corporate Governance .................................................................................. 79 Chapter VI Major Events .............................................................................................. 105 Chapter VII Financial Report ....................................................................................... 109 Chapter VIII List of Documents for Reference ............................................................. 110 2 Xiamen International Bank Co., Ltd. Annual Report 2017 Definitions In this annual report, unless the context otherwise specified, the following terms shall bear the respective meanings as following: Term Definitions The Bank, the Company, Xiamen Xiamen International Bank Co., Ltd. International Bank,XIB Articles of Association, these Articles The Articles of Association of Xiamen of Association, the Company’s International Bank Co., Ltd. Articles of Association CBRC China Banking Regulatory Commission CBRC Xiamen Xiamen Office of China Banking Regulatory Commission Yuan RMB Yuan Offices in Chinese Mainland All of the offices that XIB has established in Chinese Mainland, including the head office of Xiamen International Bank Co., Ltd. Overseas Offices Luso International Banking Ltd. (LIB), Chiyu Banking Corporation Limited (CYB), Xiamen International Investment Co., Ltd. (Hong Kong) (XIIL) Luso International Bank, LIB Luso International Banking Ltd. Chiyu Bank, CYB Chiyu Banking Corporation Ltd. The Fourth Five-Year Plan The Fourth Five-Year Plan (2016–2020) of Xiamen International Bank Co., Ltd. The reporting period January 1, 2017 – December 31, 2017 3 Chairman’s Statement In 2017, facing complex and changing economic and financial situations at home and abroad, the Bank continued to maintain a robust and positive development trend by sticking to balanced development in terms of business, quality and economic performance. As of the end of 2017, the Bank’s total assets registered RMB 712.4 billion, representing a 26.42% growth compared with the end of previous year; Annual after-tax profit amounted to RMB 5.4 billion, an increase by 27.78% from the end of previous year; ordinary customer deposits reached RMB 470.7 billion, representing a 16.42% year-on- year growth; non-performing loan ratio across the Bank was 0.66%, a decrease by 0.04% in comparison with the end of previous year. Overall asset quality of the bank is maintained a t a g o o d l e v e l . Over the past year, the Bank actively responded to the Party and our government’s strategic deployment of expanding financial opening-up and constructing new pattern of overall opening. Major breakthroughs of the bank, such as successful delivery of CYB shares, establishment of LIB Guangzhou Branch, CYB and LIB capital bond issuance, have given great impetus for the future development of the Bank. Meanwhile, to actively implement policies of state and regulatory authority, the bank stick to the origin of serving the real economy, take the initiative to develop small and micro enterprises, retail business and other inclusive finance businesses. For the above achievements, on behalf of the Board of Directors, I would like to extend my sincerest gratitude to those who have always cared about and supported us, including all levels of government, regulators, customers, shareholders and the community. I also would like to express my heartful thanks to all the employees of the Bank, for all their hard work! In 2018, guided by the spirits of the 19th National Congress of the Communist Party of China (CPC), the Third Plenary Session of the 19th CPC Central Committee, the 13th National People's Congress (NPC) and Chinese People's Political Consultative Conference (CPPCC) and National Financial Work Conference, the Bank will seize development opportunities and adhere to reform and innovation in order to accelerate transformation, transition and upgrade of operation and management models; XIB will 4 Xiamen International Bank Co., Ltd. Annual Report 2017 continue to adhere to the strategic mindset of “acting with integrity, operating with wisdom, controlling risks and managing in a lean way” so that it can push its business development to a new height, promote its operation and management to a new platform and open a new chapter of development. 5 President’s Report The year of 2017 witnessed complex and ever-changing economic and financial situations at home and abroad as well as increasingly stringent regulatory policies, which imposed great pressure on the operation and management in the banking industry. By earnestly studying the spirits of the 19th CPC National Congress, Central Government Economic Work Conference and National Financial Work Conference, while sticking to requirements of General Shareholders’ Meeting and the Board of Directors, adhering to the mindset of operating with wisdom and controlling risks, XIB has successfully achieved balanced development among scale, quality and economic results by boosting vitality through reform and leading development with innovation. As of the end of 2017, the Bank’s total asset increased by 26.42% compared with the end of the previous year; balance of deposits and loans grew by 16.42% and 33.13% respectively from the end of the previous year; full-year after-tax profits increased by 27.78% from the end of the previous year; year-end non-performing loan ratio was 0.66%, representing a 0.04% decrease from the end of the previous year, showing that the asset quality of the Bank is maintained at a good level. In 2017, XIB ranked the 199th in terms of total assets among the World’s Top 1000 Banks in 2017 as published by the British magazine The Banker. Ranked among the world’s top 200 banks, the Bank has made dramatic progress in gaining forefront status. In 2017, with the great support of governments and regulatory authorities at all levels at home and abroad, XIB successfully completed delivery of Chiyu Banking Corporation Ltd. (Hong Kong) shares, officially incorporating Chiyu Bank as a member of XIB and further enhancing XIB’s strategic deployment in Chinese Mainland, Hong Kong and Macao. In addition, Guangzhou Branch of Luso International Bank opened for business, making it the first Macao-funded bank in Guangzhou. The establishment of domestic institutions advanced in an orderly way. With the official opening of Nanping Branch, XIB realized full coverage of institutions at municipal and district levels
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