China Banking Intermediary Business Report, 2011

【Abstract】：

In H1 2011, the operating revenue of China’s 16 listed banks reached RMB 1.09 trillion, of which intermediary business revenue amounted to RMB218.691 billion, up 45.96% YoY and sharing 20.18% of total revenue. In H1 2011, Industrial and Commercial Bank of China (ICBC) continued to stand first for its intermediary business revenue of RMB 53.791 billion; while Huaxia Bank, Bank of Beijing and Shanghai Pudong Development Bank enjoyed fairly high YoY growth rate of more than 80%.

In H1 2011, the operation of intermediary business in China’s banking characterizes the two as follows:
 
Firstly, intermediary business of China's banking features high degree of concentration. In H1 2011, intermediary business revenue of the top five banks accounted for 83.9% of the total, and that of the top ten banks made up 96.6% of the total. However, with the mushroom progression of small and medium-sized banks in recent years, the industry concentration decreased slightly over the same period of previous years in H1 2011.

Secondly, intermediary business revenue of equity banks grows faster than that of state-owned banks. In H1 2011, the growth rate of intermediary business revenue of equity banks in China reached 64.34%, while that of state-funded banks only registered 42.98%. Therefore, intermediary business revenue of equity banks saw a proportion rise to 15.4% in H1 2011 from 11.3% in 2007.

This report digs into the intermediary business of China’s major banks and analyzes revenue structure and growth of intermediary business as well as unique intermediary businesses of different banks in detail.

ICBC: In H1 2011, the bank realized service charge and commission income of RMB53.791 billion, up 45.8% YoY, of which gross settlement business revenue arrived at RMB13.582 billion and bank card business revenue reached RMB8.058 billion. Revenue from these two intermediary businesses ranks first in market segment.

China Construction Bank: In H1 2011, the bank achieved service charge and commission income of RMB47.671 billion, up 41.7% YoY, of which revenue from agency business hit RMB7.92 billion, and that from trust business got to RMB4.531 billion, with revenue from these two intermediary businesses topping the market segment.

Agricultural Bank of China: In H1 2011, the bank’s service charge and commission income soared to RMB37.136 billion, up 65.4% YoY, of which consulting business revenue attained RMB12.736 billion and stood first in market segment, followed by China Construction Bank whose consulting business revenue reached RMB 10.39 billion, together making up 82.4% of the total revenue from consulting business.

【Table of Contents】 

1. Intermediary Business of Chinese Banking Industry
1.1 Status Quo of Intermediary Business
1.1.1 Definition
1.1.2 Status Quo
1.2 Characteristics
1.2.1 High Concentration
1.2.2 Operating Revenue Growth of Intermediary Business of
Joint-Stock Banks Higher than State-Owned Banks
1.3 Reserve Depository Services of Third-Party Payment Agencies
1.4 Problems
1.5 Suggestions

2. Intermediary Business of Foreign Banking Industry
2.1 Status Quo
2.2 America
2.3 Europe
2.4 Comparison of Intermediary Business between Chinese Banks and
Foreign Banks
2.4.1 Business Scope and Variety
2.4.2 Comparison of Intermediary Business between Chinese Banks and
U.S.Banks

3. Sub-Sectors of Intermediary Business
3.1 Payment and Settlement Business
3.2 Bank Card Business
3.3 Agency Business
3.4 Guarantee and Commitment Business
3.5 Custody Business
3.6 Consulting Business

4. Intermediary Business of Major Chinese Banks
4.1 Bank of China Limited
4.1.1 Profile
4.1.2 Intermediary Business
4.1.3 Bank Card Business
4.1.4 Agency Business
4.1.5 Payment and Settlement Business
4.1.6 Guarantee and Commitment Business
4.1.7 Strategy and Target
4.2 Agricultural Bank of China Limited
4.2.1 Profile
4.2.2 Intermediary Business
4.2.3 Bank Card Business
4.2.4 Agency Business
4.2.5 Custody Business
4.2.6 Payment and Settlement Business
4.2.7 Guarantee and Commitment Business
4.2.8 Consulting Business
4.2.9 E-banking Business
4.2.10 Strategy and Target
4.3 Industrial and Commercial Bank of China Limited
4.3.1 Profile
4.3.2 Intermediary Business
4.3.3 Bank Card Business
4.3.4 Agency Business
4.3.6 Payment and Settlement Business
4.3.7 Guarantee and Commitment Business
4.3.8 Financial Management Business
4.3.9 Strategy and Target
4.4 China Construction Bank Corporation
4.4.1 Profile
4.4.2 Intermediary Business
4.4.3 Bank Card Business
4.4.4 Agency Business
4.4.5 Custody Business
4.4.6 Payment and Settlement Business
4.4.7 Guarantee and Commitment Business
4.4.8 Consulting Business
4.4.9 Strategy and Target
4.5 Bank Of Communications Co., Ltd.
4.5.1 Profile
4.5.2 Intermediary Business
4.5.3 Bank Card Business
4.5.4 Payment and Settlement Business and Agency Business
4.5.5 Custody Business
4.5.6 Fund Management and Sales Business
4.5.7 Guarantee and Commitment Business
4.5.8 Strategy and Target
4.6 China Merchants Bank Co., Ltd.
4.6.1 Profile
4.6.2 Intermediary Business
4.6.3 Bank Card Business
4.6.4 Agency Business
4.6.5 Custody Business
4.6.6 Payment and Settlement Business
4.6.7 Guarantee and Commitment Business
4.6.8 Strategy and Target
4.7 China Minsheng Banking Corp., Ltd.
4.7.1 Profile
4.7.2 Intermediary Business
4.7.3 Bank Card Business
4.7.4 Agency Business
4.7.5 Custody Business
4.7.6 Payment and Settlement Business
4.7.7 Consulting Business
4.7.8 Guarantee and Commitment Business
4.7.9 Strategy and Target
4.8 Industrial Bank Co., Ltd.
4.8.1 Profile
4.8.2 Intermediary Business
4.8.3 Bank Card Business
4.8.4 Agency Business
4.8.5 Custody Business
4.8.6 Payment and Settlement Business
4.8.7 Guarantee and Commitment Business
4.8.8 Consulting Business
4.8.9 Strategy and Target
4.9 China CITIC Bank Corporation Limited
4.9.1 Profile
4.9.2 Intermediary Business
4.9.3 Bank Card Business
4.9.4 Agency Business
4.9.5 Custody Business
4.9.6 Payment and Settlement Business
4.9.7 Guarantee and Commitment Business
4.9.8 Financial Management Business
4.9.9 Consulting Business
4.9.10 Strategy and Target
4.10 Huaxia Bank Co., Ltd
4.10.1 Profile
4.10.2 Intermediary Business
4.10.3 Bank Card Business
4.10.4 Agency Business
4.10.5 Custody Business
4.10.6 Payment and Settlement Business
4.10.7 Guarantee and Commitment Business
4.10.8 Financial Management Business
4.10.9 Consulting Business
4.10.10 Strategy and Target

5. Intermediary Business Trends of Chinese Banking Industry
5.1 Development Opportunities
5.2 Development Trends

【Figures & Tables】

Net Income and Growth of Intermediary Business of Chinese Banking
Industry,2007-2011
Revenue Structure of Chinese Banking Industry, H1 2011
Revenue Proportion of Intermediary Business to Chinese Banking
Industry, H1 2010- H1 2011
Operating Revenue and YoY Change of Intermediary Business of 16
Listed Banks in China, H1 2010-H1 2011
Operating Revenue Comparison of Intermediary Business among 16
Listed Banks in China,2006-2011
Operating Revenue Concentration of Intermediary Business of 16
Listed Banks in China,2010- H1 2011
Intermediary Business Revenue Growth Rates of State-Owned Banks,
Joint-Stock Banks and Urban Commercial Banks,2007-2011
Intermediary Business Revenue Percentages of State-Owned Banks,
Joint-Stock Banks and Urban Commercial Banks, 2007-2011
Requirements on Commercial Banks as Reserve Depository Bank in
"Interim Measures of Payment Institutions' Customers Reserve
Depository (Draft for Comments)"
Part of Reserve Depository Bank for Third-Party Payment Agencies
Third-Party Payment Agencies with "Pay Business License" in China
Intermediate Business Categories of Chinese Commercial Banks by Risk
Proportion of Non-interest Income of Commercial Banks in Major
Countries, 2010
Non-Interest Income of Commercial Banks and Savings & Loan
Institutions of FDIC, Q42009- Q42010
Non-Interest Income of Commercial Banks and Savings & Loan
Institutions of FDIC,2009-2010
Proportion of Non-interest Income of U.S.Commercial Banks, 1966-2010
Proportion of Non-interest Income of U.S.Commercial Banks (by
Scale), 1986-2010
Number of "Problem Banks" and Bankruptcy Banks in U.S.Commercial
Banks, 2007-2010
Business Scope Comparison of Commercial Banks between China and
Developed Countries
Comparison of Net Income between Chinese Banks and U.S. Banks,
1986-2010
Comparison of Net Interest Income between Chinese Banks and U.S.
Banks, 1986-2010
Comparison of Cost-to-income Ratio between Chinese Listed Banks and
U.S.Banks, 1986-2010
Comparison of Non-interest Income Proportion Between Chinese Listed
Banks and U.S.Banks, 1986-2010
Comparison of Non-interest Income and Net Interest Income between
Chinese Listed Banks and U.S.Banks, 1960-2010
ROE Decomposition Map of Chinese Listed Banks and U.S. Banks
Growth Rate of Commission Income of Chinese 16 Listed Banks (by
Type), H1 2009-H1 2011
Details of Commission Income Growth of Major Listed Banks in China,
H1 2011
Operating Revenue and Growth of Payment and Settlement Business in
Chinese Banks Industry, 2005-2011
Operating Revenue and Growth of Bank Card Business in Chinese Banks
Industry, 2005-2011
Operating Revenue and Growth of Agency Business in Chinese Banks
Industry, 2005-2011
Operating Revenue and Growth of Guarantee and Commitment Business in
Chinese Banks Industry, 2005-2011
Operating Revenue and Growth of Custody Business in Chinese Banks
Industry, 2005-2011
Summary Tables of Fund Net Asset Value and Scale Trusted by Banks in
China, 2010-H1 2011
Operating Revenue and Growth of Consulting Business in Chinese Banks
Industry, 2005-2011
Operating Revenue Growth and Proportion of Intermediary Business of
Chinese 16 Listed Banks, H1 2010- H1 2011
Total Deposits and Net Loans of BOC, 2005-2011
Cost-to-Income Ratio of BOC, 2005-2011
Operating Revenue and Net Interest Income of BOC, 2005-2011
Non-Interest Income (Including Fee and Commission) of BOC, 2005-2011
Revenue Structure of Fee and Commission of BOC(by Business), H1 2011
Operating Revenue of Bank Card Business of BOC, 2005-2011
Operating Revenue Proportion of Bank Card Business of BOC, 2005-2011
Operating Revenue of Agency Business of BOC, 2005-2011
Operating Revenue Proportion of Agency Business of BOC, 2005-2011
Operating Revenue of Payment and Settlement Business of BOC,
2005-2011
Operating Revenue Proportion of Payment and Settlement Business of
BOC, 2005-2011
Operating Revenue of Guarantee and Commitment Business of BOC,
2005-2011
Operating Revenue Proportion of Guarantee and Commitment Business of
BOC, 2005-2011
Total Deposits and Net Loans of ABC, 2007-2011
Cost- to-Income Ratio of ABC, 2007-2011
Operating Revenue and Net Interest Income of ABC, 2007-2011
Fee and Commission Income of ABC, 2007-2011
Revenue Structure of Fee and Commission of ABC(by Business), H1 2011
Operating Revenue of Bank Card Business of ABC, 2007-2011
Operating Revenue Proportion of Bank Card Business of ABC, 2007-2011
Operating Revenue of Agency Business of ABC, 2007-2011
Operating Revenue Proportion of Agency Business of ABC, 2007-2011
Operating Revenue of Hosting Business of ABC,2007-2011
Operating Revenue Proportion of Custody Business of ABC, 2007-2011
Operating Revenue of Payment and Settlement Business of ABC,
2007-2011
Operating Revenue Proportion of Payment and Settlement Business of
ABC, 2005-2011
Operating Revenue of Guarantee and Commitment Business of ABC,
2007-2011
Operating Revenue Proportion of Guarantee and Commitment Business of
ABC, 2007-2011
Operating Revenue of Consulting Business of ABC, 2007-2011
Operating Revenue Proportion of Consulting Business of ABC,
2007-2011
Operating Revenue of E-banking Business of ABC, 2007-2011
Operating Revenue Proportion of E-banking Business of ABC, 2007-2011
Total Deposits and Loans of ICBC, 2007-2011
Cost-to-Income Ratio of ICBC, 2007-2011
Operating Revenue and Net Interest Income of ICBC, 2007-2011
Fee and Commission Income of ICBC, 2007-2011
Revenue Structure of Fee and Commission of ICBC(by Business), H1
2011
Operating Revenue and Proportion of Bank Card Business of ICBC,
2007-2011
Operating Revenue and Proportion of Agency Business of ICBC,
2007-2011
Operating Revenue and Proportion of Payment and Settlement Business
of ICBC, 2007-2011
Operating Revenue and Proportion of Guarantee and Commitment
Business of ICBC, 2007-2011
Operating Revenue and Proportion of Financial Management Business of
ICBC, 2007-2011
Total Deposits and Net Loans of CCB, 2004-2011
Cost-to-Income Ratio of CCB, 2005-2011
Operating Revenue and Net Interest Income of CCB, 2005-2011
Fee and Commission Income of CCB, 2005-2011
Revenue Structure of Fee and Commission of CCB(by Business), H1 2011
Operating Revenue and Proportion of Bank Card Business of CCB,
2006-2011
Operating Revenue and Proportion of Agency Business of CCB,
2006-2011
Operating Revenue and Proportion of Custody Business of CCB,
2006-2011
Operating Revenue and Proportion of Payment and Settlement Business
of CCB, 2006-2011
Operating Revenue and Proportion of Guarantee and Commitment
Business of CCB, 2006-2011
Operating Revenue and Proportion of Consulting Business of CCB,
2006-2011
Total Deposits and Net Loans of BOCOM, 2005-2011
Cost-to-Income Ratio of BOCOM, 2005-2011
Operating Revenue and Net Interest Income of BOCOM, 2006-2011
Fee and Commission Income of BOCOM, 2006-2011
Revenue Structure of Fee and Commission of BOCOM(by Business), H1
2011
Operating Revenue and Proportion of Bank Card Business of BOCOM,
2006-2011
Operating Revenue and Proportion of Payment and Settlement Business
of BOCOM, 2006-2011
Operating Revenue and Proportion of Custody Business of BOCOM,
2006-2011
Operating Revenue and Proportion of Fund Management and Sales
Business of BOCOM, 2006-2011
Operating Revenue and Proportion of Guarantee and Commitment
Business of BOCOM, 2006-2011
Total Deposits and Loans of CMB, 2005-2011
Cost-to-Income Ratio of CMB, 2005-2011
Operating Revenue and Net Interest Income of CMB, 2006-2011
Fee and Commission Income of CMB, 2006-2011
Revenue Structure of Fee and Commission of CMB (by Business), H1
2011
Operating Revenue and Proportion of Bank Card Business of CMB,
2006-2011
Operating Revenue and Proportion of Agency Business of CMB,
2006-2011
Operating Revenue and Proportion of Custody Business of CMB,
2006-2011
Operating Revenue and Proportion of Payment and Settlement Business
of CMB, 2006-2011
Operating Revenue and Proportion of Guarantee and Commitment
Business of CMB, 2006-2011
Total Deposits and Loans of CMBC, 2005-2011
Cost- to-Income Ratio of CMBC, 2005-2011
Operating Revenue and Net Interest Income of CMBC, 2006-2011
Fee and Commission Income of CMBC, 2006-2011
Revenue Structure of Fee and Commission of CMBC(by Business), H1
2011
Operating Revenue and Proportion of Bank Card Business of CMBC,
2006-2011
Operating Revenue and Proportion of Agency Business of CMBC,
2006-2011
Operating Revenue and Proportion of Custody Business of CMBC,
2006-2011
Operating Revenue and Proportion of Payment and Settlement Business
of CMBC, 2006-2011
Operating Revenue and Proportion of Consulting Business of CMBC,
2006-2011
Operating Revenue and Proportion of Guarantee and Commitment
Business of CMBC, 2006-2011
Total Deposits and Loans of IB, 2006-2011
Cost-to-Income Ratio of IB, 2005-2011
Operating Revenue and Net Interest Income of IB, 2007-2011
Fee and Commission Income of IB, 2007-2011
Revenue Structure of Fee and Commission of IB(by Business), H1 2011
Operating Revenue and Proportion of Bank Card Business of IB,
2007-2011
Operating Revenue and Proportion of Agency Business of IB, 2007-2011
Operating Revenue and Proportion of Custody Business of IB,
2007-2011
Operating Revenue and Proportion of Payment and Settlement Business
of IB, 2007-2011
Operating Revenue and Proportion of Guarantee and Commitment
Business of IB, 2007-2011
Operating Revenue and Proportion of Consulting Business of IB,
2007-2011
Total Deposits and Loans of CITIC Bank, 2005-2011
Cost-to-Income Ratio of CITIC Bank, 2005-2011
Operating Revenue and Net Interest Income of CITIC Bank, 2005-2011
Fee and Commission Income of CITIC Bank, 2005-2011
Revenue Structure of Fee and Commission of CITIC Bank (by Business),
H1 2011
Operating Revenue and Proportion of Bank Card Business of CITIC
Bank, 2005-2011
Operating Revenue and Proportion of Agency Business of CITIC Bank,
2005-2011
Operating Revenue and Proportion of Custody Business of CITIC Bank,
2006-2011
Operating Revenue and Proportion of Payment and Settlement Business
of CITIC Bank, 2005-2011
Operating Revenue and Proportion of Guarantee and Commitment
Business of CITIC Bank, 2005-2011
Operating Revenue and Proportion of Financial Management Business of
CITIC Bank, 2006-2011
Operating Revenue and Proportion of Consulting Business of CITIC
Bank, 2005-2011
Total Deposits and Loans of HuaXia Bank, 2006-2011
Cost to Income Ratio of HuaXia Bank, 2006-2011
Operating Revenue and Net Interest Income of HuaXia Bank, 2006-2011
Fee and Commission Income of HuaXia Bank, 2007-2011
Revenue Structure of Fee and Commission of HuaXia Bank (by
Business), H1 2011
Operating Revenue and Proportion of Bank Card Business of HuaXia
Bank, 2007-2011
Operating Revenue and Proportion of Agency Business of HuaXia Bank,
2007-2011
Operating Revenue and Proportion of Hosting Business of HuaXia Bank,
2007-2011
Operating Revenue and Proportion of Payment and Settlement Business
of HuaXia Bank, 2007-2011
Operating Revenue and Proportion of Guarantee and Commitment
Business of HuaXia Bank, 2007-2011
Operating Revenue and Proportion of Financial Management Business of
HuaXia Bank, 2007-2011
Operating Revenue and Proportion of Consulting Business of HuaXia
Bank, 2007-2011
Operating Revenue Growth of Intermediary Business of Chinese Banking
Industry, 2011-2012