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Nanjing City Commercial Bank becomes Bank of Nanjing and enters a new stage in its development

Nanjing City Commercial Bank (NCCB) has just adopted the name Bank of Nanjing (BoN), as part of the bank's development and modernisation.

Bank of Nanjing benefits from an excellent reputation in the Chinese banking world, strengthened by the support of BNP Paribas for more than a year. The co-operation between the two focuses particularly on retail banking, consumer credit (in partnership with Cetelem), risk management and organisation. The initial results are very good and reflect the great potential of this alliance.

Rapid change in the Chinese banking market and local regulators' confidence in the bank have led to a number of development opportunities seized recently, some of which represent firsts in China:

  • Bank of Nanjing is one of the very first municipal banks authorised to develop outside its original municipality. It has just opened a branch in the booming municipality of Taizhou, situated 150 kilometres north east of Nanjing. The region of Taizhou has 5 million inhabitants and benefits from economical growth of around 15% a year. This branch is the first stage in the bank's development outside Nanjing.
  • Bank of Nanjing also recently acquired an 18% holding in Rizhao City Commercial Bank (RCCB). This is the first transaction of its kind in China, resulting from commercial negotiation between two banking institutions with the same status. Rizhao is a medium-sized port town in the south east of the Shandong province on the east coast of China. The region has a population of 2.8 million and has seen economic growth of 15% a year on average over the past five years. With a network of 22 branches and a workforce of 480, RCCB controls 20% of the deposits market in the Rizhao region.
  • In addition, Cetelem and Bank of Nanjing have just jointly launched a new consumer credit product that provides users with credit directly at the point of sale. The design and marketing of this product are the result of the combined strengths of the two partners – Cetelem offers its experience in the retail sector and its latest data processing tools and systems, while Bank of Nanjing provides its knowledge of the local market and its network of branches.

  • Finally, Bank of Nanjing's plan for an IPO on the Shanghai stock exchange is being studied by the authorities. Access to the market would provide the bank with additional resources for its development.

These events confirm the bank's intention to further accelerate its growth, which has already been well sustained in the past few years. Bank of Nanjing posted excellent results in 2006, with rises in all its indicators. Its net banking income rose by 23% to RMB 1,515 million (USD 190 million), while its pre-tax profits stood at RMB 771 million (USD 97 million), up 55% compared to 2005. Its cost/income ratio was 43.6%, a rise of 2.4 bp.

Questioned about this operation, Jean Clamon, Chief Operating Officer of BNP Paribas, declared: “Bank of Nanjing is a solid partner in one of the most attractive regions in China, thanks to the size and growth of its economy. BNP Paribas intends to help Bank of Nanjing to further accelerate its development. The launch of this first consumer credit product in partnership with Cetelem is an example of this, and I am sure it will be followed by many others."

Bank of Nanjing
Bank of Nanjing is based in the capital of the Jiangsu province in eastern China, around 300 km north west of Shanghai. At 31 December 2006, Bank of Nanjing was the 21st biggest commercial bank in China, with a total balance sheet of RMB 58.6 billion (USD 7.3 billion), loans outstanding of RMB 25.4 billion (USD 3.2 billion) and deposits under management of RMB 44.1 billion (USD 5.5 billion). The Bank of Nanjing comprises 60 branches and employs more than 1,500 people. It operates in the fields of corporate loans, trade finance, mortgage loans and share trading. BNP Paribas owns a 19.2% stake in Bank of Nanjing.

About BNP Paribas
BNP Paribas ( is a European leader in banking and financial services, and is ranked among the top 15 world banks in terms of market capitalisation. Today, it has nearly 140,000 employees, including 110,000 in Europe. BNP Paribas enjoys key positions in its three core businesses: Corporate and Investment Banking, Asset Management & Services and Retail Banking. It is present in 85 countries and is well established in all the world's major financial markets. Present throughout Europe through all its businesses, France and Italy are its two domestic retail banking markets. BNP Paribas also has a strong and growing presence in the United States and strong positions in Asia and emerging countries.