Bank of China to float this year

International
Bank of China to float this year
By Finfacts Team
May 31, 2005, 11:11

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Bank of China tower, Hong Kong - Established in 1912, Bank of China is the oldest bank in China. It has been ranked one of the world's top banks in terms of core capital by The Banker. For 90 years, Bank of China has played an important role in promoting China's economic and social progress through its active involvement in the country's international trade and financial activities. Since 1992 the bank has been awarded "The Best Bank in China" for nine times by Euromoney magazine, the latest being in 2002. Moreover, Bank of China has been included in the Fortune Global 500 for 13 consecutive years.

A spokesman for the Bank of China announced on Tuesday that the state-owned bank is expected to float this year.

"We are actively preparing for the share offering, but the listing depends on an opportunity and window to the market. We are doing our best to list the bank in 2005," Wang Zhaowen, the spokesman for the bank, told a press conference.

China's second-largest lender announced that its operating profits rose a year-on-year 21.3 percent in 2004 to RMB 57.8 billion yuan (US $7 billion).

The bank's net profits were RMB 20.9 billion yuan (US$2.5 billion, in line with the 2003 level, Wang said at the press conference.

Bank of China received government funding of $22.5 billion in December 2003 to reduce its bad loan ratio as part of a restructuring for the floatation.

The bank announced that its bad loan ratio was 5.12 percent at the end of 2004, compared with 15.29 percent at the end of 2003.

Bank of China has ongoing discussions with foreign banks on selling minority stakes and agreeing strategic alliances.