In 2005, following the approach to scientific development, China Everbright Bank (CEB) continued to deepen reforms, vigorously boost structural adjustment, strengthen centralized management and centralized marketing, and strictly avoid and reduce risks, achieving sustained and stable development in all aspects and accomplishing all the business goals set in 2005.

By the end of 2005, the total asset value of CEB reached RMB530.1 billion, an increase of RMB94.5 billion over the beginning of 2005; deposits had a total balance of RMB450 billion, up RMB63.9 billion; net income of fee-based business totaled RMB710 million, rising by RMB247 million over the previous year; and business profit amounted to RMB5.517 billion, a year-on-year increase of RMB957 million. After resolving a number of historical problems, book profit before tax totaled RMB1.251 billion, up RMB251 million. Generally, CEB has maintained stable operation and sustained development.

It is especially worth noting that CEB has made remarkable achievements in adjusting its business structure, greatly improving its assets structure, liabilities structure and income structure. Firstly, as of the assets structure, great emphasis has been laid on the business operations that use less capital; credit structure was further optimized and newly acquired capital has been invested in regions, industries and outstanding large and medium enterprises with low risk and high returns. Secondly, as of the liabilities structure, savings deposits of high stability and deposits from financial institutions of low cost now have taken up a much larger proportion. By the end of 2005, savings deposit totaled RMB79.2 billion, up by RMB25.1 billion or 46.4% over the beginning of the year; deposits from financial institutions totaled RMB40.9 billion, up by RMB 23.8 billion or 139.2%. At the end of 2005, the ratios of savings deposits and deposits from financial institutions to total deposit rose from 13.42% and 4.24% at the beginning of the year to 16.13% and 8.34% respectively. Thirdly, as of the income structure, there has been a remarkable increase of investment return and fee-based business return, taking up a much larger proportion. CEB has maintained impressive profitability. Fee-based business return of the year increased by 57%; investment return rose by RMB636 billion over the previous year; and net return of securities investment and transactions increased by 38%.

In addition, CEB has made great headway in Sunshine Wealth Management business and products innovation. The accumulative annual sales of wealth management products have increased by a large margin. At the 2005 wealth management products contests organized by Sina and Sohu, Sunshine Wealth Management products were ranked No. one in both contests and were conferred with annual wealth management awards, taking the lead in sales and brand image. As one of the first group of banks that received the qualification to underwrite short-term financial bonds, CEB has successfully issued short-term financial bonds of RMB36.7 billion on behalf of China Unicom and Shenhua Group over the past year. Both the underwriting volume and the number of clients ranked top in the market. As the only commercial bank authorized to act as the fiscal agent of the State Treasure, CEB has established direct payment relations with 78 ministries and their subdivisions, and authorized payment relations with 28 ministries and 111 grass root branches. Over the year, CEB was ranked No. one in terms of making authorized payments, collecting payments of RMB120 billion. CEB has signed cooperation agreements on enterprise annuity with 36 enterprises. The custodian assets totaled RMB13 billion. The Bank-Customs Link is now applied at 27 first-grade Customs and 237 ports, and the total annual settlement approached RMB40 billion. Furthermore, CEB became the joint lead manager of domestic USD bonds for the Import and Export Bank of China and the co-lead manager of USD bonds for China Development Bank; it has also acquired the qualifications to conduct four new business operations, including the issuing of Renminbi bonds in domestic market on behalf of international financial institutions and conducting forward exchange settlement and sales. Foreign currency transaction business, including USD Payment Hedging, inflation-linked foreign currency securities, and personal foreign exchange trading, has also witnessed effective development.

At the conference, the basic guideline for the business development of China Everbright Bank of this year was established.A scientific development perspective would be the overarching business philosophy; the implementation of strategic planning would be the main objective and restrain from capital-use would be the precondition. China Everbright aims to accelerate business innovation and boost entrepreneurship, further conduct structural adjustment so as to solidify business foundation, deepen reforms and refine business mechanism, strengthen comprehensive risk management, in order to realize a balanced business development, a stable growth and a virtuous business cycle.China Everbright Bank strives to bring all indices on par with listing requirements, ensuring the successful gain of shareholders.

To ensure the successful completion of all business objectives, the conference also saw the setting forth of work requirements and priorities.Firstly, be committed to base all work on the concept of scientific development, and further promote the concept throughout so as to make sure that it is reflected in all aspects of the Bank’s business. Secondly, advance strategic planning, so as to gradually realize a balanced development; business operations should be further consolidated, striving for partial competitive advantage in the market; accelerate the promotion of personal banking and credit cards, boosting its contribution to the business as a whole; vigorously step up the development and nurturing of intermediary business and emerging business, so as to increase the proportion of non-interest income and create business specialties; strengthen and improve centralized, uniform and collective management of the Bank’s assets and liabilities, and improve capital utilization and allocation efficiency.Thirdly, further strengthen comprehensive risk management, carefully prevent and control increment VaR (Value at Risk), perfect the long-term risk management mechanism.Fourthly, further deepen institutional reforms. In accordance with the new five-year strategic development planning, reforms on organizational structure, marketing mechanism, credit management mechanism, human resource management mechanism and performance management mechanism shall be stepped up, so as to enhance the capability of conducting intensive business operation and management.Fifthly, seize the opportunity and further transform the modes of running and developing the business.Sixthly, vigorously strengthen development of leadership and corporate culture, further boosting the image of China Everbright Bank.