Annual Report 2012

5 MANAGEMENT DISCUSSION AND ANALYSISIn 2012, CCB International’s corporate financing and financial advisory services developed steadily. It ranked top among the investmentbanking arms of Chinese banks in terms of the number of projects participated in as book runner. The competitiveness of its M&A servicesrose substantially. Debt instrument financing business achieved a breakthrough. CCB International helped the Bank issue RMB-denominatedbonds in Hong Kong and London. It continued to maintain its edge in the asset management business with rising market presence in healthcare, culture, environmental protection, aviation and other industries. The brand image of CCB International was further enhanced, with multipleawards including “Annual Best Investment Bank in Hong Kong” from The Asset magazine, and “Golden Ox Investment Bank Award” from ChinaSecurities Journal. At the end of 2012, CCB International’s total assets were RMB18,668 million, and shareholders’ equity was RMB6,632million. Net profit was RMB82 million.CCB LondonChina Construction Bank (London) Limited is a wholly owned subsidiary of the Bank registered in the UK with a registered capital of US$200million. In March 2009, CCB London obtained the banking licence issued by UK Financial Services Authority (FSA). It is mainly engaged incorporate deposits and lending, international settlement and trade financing, British pound clearing, and treasury financial products.CCB London proactively served the Chinese institutions in the UK, British companies with investment in China, and corporate customersinvolved in bilateral trade, expanding CCB’s service channels in the UK and Europe. With its edge in clearing for British pound, CCB Londongradually became the Group’s British pound clearing centre, providing customers with convenient, fast, and efficient multi-currency clearingservices. In November 2012, CCB London took the lead in issuing RMB-denominated offshore bond of RMB1 billion, establishing a leadingposition in Chinese banks in European market. At the end of 2012, the total assets of CCB London were RMB5,068 million, and shareholders’equity was RMB1,272 million. Net profit was RMB79 million.Domestic subsidiariesThe Group is committed to provide multi-functional, integrated and one-stop comprehensive financial services to its wide customer base, andachieve synergistic development of all member companies through resource sharing, cross-selling and business collaboration. At the end of2012, the Group had five domestic subsidiaries, namely CCB Financial Leasing, CCB Trust, Sino-German Bausparkasse, CCB Principal AssetManagement, and CCB Life. The Group also initiated the establishment of 26 rural banks in Hunan Taojiang and many other places. The overalldevelopment of domestic subsidiaries was in a good shape with steady business expansion and sound asset quality. At the end of 2012, totalassets of the domestic subsidiaries were RMB92,657 million; net profit was RMB1,355 million.CCB Financial LeasingCCB Financial Leasing Corporation Limited has a registered capital of RMB4.5 billion. In November 2012, the Bank acquired the remaining24.90% interests in CCB Financial Leasing from Bank of America, and made CCB Financial Leasing its wholly-owned subsidiary. CCB FinancialLeasing mainly engages in finance leasing, receiving security deposits from lessees, assigning rent receivables to commercial banks, issuingfinancial bonds, interbank lending, borrowing from financial institutions, and borrowing foreign exchange from overseas.In 2012, CCB Financial Leasing made steady progress in its leasing business, strengthened risk management and internal control, and activelyexplored innovative leasing products. At the end of 2012, its total assets amounted to RMB40,288 million; shareholders’ equity was RMB5,337million. Net profit was RMB356 million.CCB TrustCCB Trust Co., Limited has a registered capital of RMB1,527 million. The Bank, Hefei Xingtai Holding Group Corporation Limited, and HefeiMunicipal State-owned Assets Holding Corporation Limited held 67%, 27.5% and 5.5% of its shares respectively. CCB Trust is mainly engagedin trust services for funds, movable and immovable property, and marketable securities; fund investment; asset restructuring, M&A and projectfinancing, corporate finance, and financial advisory services; securities underwriting; intermediary, consultancy, and credit investigation services;custody and safe deposit box services; lending, investment and guarantees with equity funds.In 2012, while expanding its business scale and market share, CCB Trust continued to improve business structure, and refine its managementand operation. At the end of 2012, the trust assets under management amounted to RMB350,777 million, up 83.92% from 2011. The totalassets were RMB5,528 million, and shareholders’ equity was RMB5,319 million. Net profit was RMB587 million.Sino-German BausparkasseSino-German Bausparkasse Co., Ltd. has a registered capital of RMB2 billion. The Bank and Bausparkasse Schwaebisch Hall AG held 75.10%and 24.90% of its shares respectively. Its business scope includes taking housing savings deposits, extending housing savings loans andpersonal residential mortgages, and extending development loans in support of the development and construction of economically affordablehouses, low-rent houses, economically affordable rent houses and price-limited houses. This allowed it to establish itself as a specialisedcommercial bank with overall functions in housing financing sector.China Construction Bank Corporation annual report 201237