OREANDA-NEWS. September 10, 2014. Bank of China revealed its 2014 interim results and became the first among the major state-owned commercial banks to do so this year. According to its interim report, BOC realized after-tax profits of RMB93.409 billion in the first six months, up 10.97% year on year; after-tax profits attributable to shareholders amounted to RMB89.724 billion, up 11.15% year on year. BOC expressed that the growth in its interim results mainly benefited from its development strategy of "Serving Society, Delivering Excellence".

In the first half of 2014, BOC achieved new progress in business expansion by serving the real economy; made new breakthroughs in key areas by seizing development opportunities; enhanced its operation and management by focusing on key and fundamental businesses. Its incremental RMB deposits hit the peak for the corresponding period since 2010; non-interest income rose by 13.4% year on year; profit before tax of its overseas business increased by 35.8% year on year; comprehensive operating income grew by 20% year on year.

In terms of deposits, by actively tapping the upstream and downstream clients along the supply chain and industry chain, BOC has continuously facilitated the development of basic businesses including payroll payment service, fee collection and payment service, expanded customer bases, and maintained steady growth in deposit size. As at the end of June, its deposits from customers totaled RMB11,190.569 billion, representing an increase of RMB1,092.783 billion, or 10.82% over the end of last year; among which RMB deposits of domestic customers totaled RMB8,445.227 billion, representing an increase of RMB735.264 billion, or 9.54% over the end of last year.

In terms of loans, as of the end of June, BOC posted total loans to customers amounting to RMB8,424.595 billion, up 10.74% over the end of last year. It maintained a balanced and reasonable increase in the total credit granted by strictly following the prudent monetary policy and regulatory requirements. BOC stressed optimization of the credit structure and stepped up support to key areas and parts in the national economy. In the first half year, the increase rates of loans to medium-sized enterprises and to small enterprises under the "BOC Credit Factory" model were 1.13 percentage points and 5.65 percentage points higher than that of domestic corporate loans. The ratio of loans to strategic emerging industries in domestic corporate loans rose by 1.03 percentage points, while the ratio of loans to sectors plagued by overcapacity decreased by 0.23 percentage points. Moreover, BOC vigorously supported Chinese enterprises to "go global" by leveraging its internationalized and diversified advantages. As of the end of June, it supported 1,187 "international" projects in total, and offered loan commitments of US\\$102.8 billion, up 26% year on year.

In terms of RMB internationalization, BOC completed cross-border RMB settlements of RMB2.79 trillion and clearings of RMB112.5 trillion in the first half of 2014, up 63.0% and 98.7% year on year respectively. It ranked first worldwide by business volume and became the largest RMB service provider in the offshore market. In addition, it further improved its global RMB clearing network, with Frankfurt Branch becoming the first RMB clearing bank in the euro zone, and rapidly grew its RMB balance sheets overseas. It ranked top among Chinese banks by the issue and sales volume of offshore RMB bonds; the "Oceania Bonds" issued in Sydney, "Schengen Bonds" in Luxembourg and "Arc de Triomphe Bonds" in Paris were the first issues of its kinds in local markets.

With respect to internet finance, BOC has constantly boosted the migration rate of financial transactions via its electronic channels, with e-banking transaction volume rising substantially year on year. The number of mobile banking customers and transactions increased by 380% and 740% year on year; while the number of personal internet banking and corporate internet banking customers grew by 37% and 45% year on year respectively. Furthermore, BOC has accelerated the implementation of the internet banking strategy, consistently improved its open platform, and launched innovative services including online wealth management, financial e-manager, intelligent e-community, internet-based financial services abroad, mobile payment and online payment service for shipping enterprises.

Despite a still complex operating environment in the second half of 2014, BOC will continue to implement the development strategy of "Serving Society, Delivering Excellence"; accelerate the expansion of various businesses by centering on the real economy; effectively control risks and costs, and watch out for the risk bottom line; adhere to innovation-driven development and forge ahead with future-oriented key projects; and continuously focus on groundwork construction at the grassroots level with a down-to-earth attitude.