Chen Siqing said to head world’s largest bank

SHANGHAI • China has named a new chief for Industrial & Commercial Bank of China Ltd (ICBC), the world’s largest lender by assets, people with knowledge of the matter said.

Chen Siqing (picture), chairman of Bank of China Ltd (BoC), was appointed as party secretary of Beijing-based ICBC at an internal meeting yesterday, the people said, asking not to be identified as the matter is private. Chen is replacing Yi Huiman, who became chairman of the China Securities Regulatory Commission, the country’s top securities regulator, in January.

Chen is expected to also be named ICBC’s chairman, a position that has traditionally been held by the same person who has served as party secretary, according to the people. The bank had US$4.1 trillion (RM16.97 trillion) of total assets at the end of 2018.

The reshuffle adds to a string of management changes at China’s top financial institutions and regulators. Peng Chun, chairman of Bank of Communications Co Ltd (BoComm) was appointed head of China’s US$941 billion sovereign wealth fund earlier this month, while Liu Guiping, vice mayor of the southwestern city of Chongqing, was named president of China Construction Bank Corp in March. China has yet to fill the chairmen positions at BoC and BoComm, the nation’s fourth- and fifth-largest lenders.

The lender’s shares fell 2.5% as of 1:25pm in Shanghai yesterday, compared to a 1.4% decline in the benchmark index.

ICBC reported a record profit of 297.7 billion yuan (RM184.57 billion) last year after policymakers renewed their push to spur credit amid a deepening economic slowdown. At rival BoC, which generated more revenue from overseas operations than any of its domestic peers, earnings grew at the fastest pace since 2014 to 180.1 billion yuan.

ICBC currently operates 426 outlets in overseas markets with US$384 billion of assets, or close to 10% of the group’s total.

Running China’s top banks does not come with a lavish pay package. Yi, former chairman of ICBC, earned about US$100,250 last year, a fraction of the salaries taken home by JPMorgan Chase & Co’s Jamie Dimon and Goldman Sachs Group Inc’s former CEO Lloyd Blankfein.

China capped compensation for most senior executives at its biggest banks and other state-owned enterprises in 2015 as part of efforts to combat inequality.

Chen, born in 1960, joined BoC in 1990 and became its chairman in 2017. had earlier reported Chen’s appointment. — Bloomberg