ICBC becomes the largest bank in the world

by Richard Kilner

Story link: ICBC becomes the largest bank in the world

The Industrial and Commercial Bank of China (ICBC) is now the largest bank in the world, according to The Australian newspaper.

The ICBC not only tops the league table of market share, but is also the most profitable global bank with post-tax profits soaring by 35% in 2008 to reach RMB 111.2bn, the sixth consecutive year of growth the bank has enjoyed.

China’s banks have been investing in financial services firms all over the world, and the largest of them have recently been given the go ahead to create insurance companies, further enhancing the strong and growing Chinese financial sector.

The ICBC’s deposits, including interbank deposits, now total the equivalent of US$1.43 trillion.

Whilst other major banks in the region have focused upon mergers and acquisitions to expand, the ICBC has depended upon the domestic Chinese market.

It is currently looking to engage in M&A activity primarily in developing countries.

The ICBC has also recently won the Best Bank in China award from magazine Global Finance, the sixth time it has won the prize.

The award was given for a variety of reasons, not least of which was achieving record-breaking profits in the face of the global economic and financial crisis.