In 2001, the Agricultural Bank of China carried out economic and financial policies of the state, insisted on the management notion of taking clients as the core, the market as orientation and results as aim, speeded up development, deepened reforms, strengthened management as well as pioneered to make progress. Accordingly, the situation of management underwent obvious improvement, overall strength and competitiveness grew stronger, and a favorable beginning of the new century was realized.Till the end of 2001, there were total assets as much as RMB 2527.990 billion yuan, of which credit assets of RMB and foreign currency added up to RMB 1646.178 billion yuan. There was obvious improvement in asset quality as well as a sharp decrease in the balance and percentage of non-performing credit of the same kind. Capital strengths grew stronger, and all deposits of RMB and foreign currency added up to RMB 2091.411 billion yuan. The management results improved constantly, with profits as much as RMB 1152 million yuan in the year.Corporate businessIn 2001, Agricultural Bank of China tried to adjust the structure of corporate clients, controlled credit investment, itemized client supervision, strengthened marketing and promoted management level. Hence, the corporate business developed rapidly, and comprehensive management standards underwent thorough improvement. Till the end of the year, there was loan balance of corporate clients as much as RMB 1524.492 billion yuan, increased by 109.101 and up 7.7% in comparison with that at the beginning of the year. And there was deposits balance of corporate clients as much as RMB 658.893 billion yuan, up 16.52%. Newly increased enterprise loans were mainly invested into industries such as rural electricity nets, transportation, post and telecommunications, power and municipal engineering. Loan balance of rural electricity nets added up to RMB 102.415 billion yuan, increased by RMB 27.977 billion yuan in comparison with that of last year. Loan balance of limited and eliminated corporate clients decreased by 5.7% in comparison with that of last year. And loan balance of excellent clients increased by 6.15%. Client structure underwent obvious optimization.In 2001, the Agricultural Bank of China extended its client scope to a number of systematic group clients and multinational companies, providing line of credit as much as RMB 13.7 billion yuan. Besides traditional deposits and loans business, it strengthened the development of intermediary business of corporate clients, and put forward a number of new products such as financing of payment receivable, trust loan of export tax rebate account, comprehensive service for group clients, etc. Personal businessTill the end of 2001, balance of RMB saving deposits in the Agricultural Bank of China added up to RMB 1253.789 billion yuan, accounting for 61.93% of all balance, increased by RMB 150.565 billion yuan in comparison with that at the beginning of the year. There was current deposits balance as much as RMB 406.597 billion yuan, accounting for 32.43% of RMB deposits balance, increased by 2.75% in comparison with that at the beginning of the year. Foreign currency deposits balance was as much as US$ 5366 million increased by US$ 377 million. Personal consumer loan balance was RMB 121.686 billion yuan, accounting for 9.14% of regular loan balance, increased by RMB 52.721 billion yuan, and the added amount accounted for 35.03% of added regular loan. Main kinds of personal customer loan were as follows: individual housing loan, automobile consumer loan, house decoration loan, comprehensive customer loan, student loan and small-amount pledge loan, etc. In 2001, the Agricultural Bank of China continues to took part in issuing and cashing national debt, purchased national debt of RMB 22.5 billion yuan, and cashed due national debt of years as much as RMB 25.05 billion yuan, realizing income from service charge as much as RMB 233 million yuan. Institutional businessIn 2001, aiming at the new market of institutional business, the bank emphasized on the development and maintenance of clients as well as the innovation and extension of financial products, and further strengthened the cooperation with financial counterpart and clients of institutional undertaking. Till the end of the year, there was inter-bank deposits balance of RMB 98.461 billion yuan, increased by RMB 22.751 billion yuan and up 30.35% in comparison with that of last year. Deposits balance of other institutional clients was as much as RMB 96.791 billion yuan, increased by RMB 27.863 billion yuan and up 40% in comparison with that at the beginning of the year. Besides, it made outstanding achievements in the cooperation between bank and security company, bank and insurance company, and bank and bank. It singed business cooperation agreement with some 30 security companies, and carried out cooperation in the field of the settlement of security funds, capital assessment of applying for purchasing new stocks, account transfer between bank and security company, fund borrowing, stock pledge loan, etc. The accumulative capital settlement amount of correspondent securities added up to RMB 1404.8 billion yuan in a year. And it signed comprehensive or business cooperation agreement with a number of Chinese-funded and foreign insurance companies, and carried out cooperation in the field of agent insurance, agreement deposits, fund settlement, etc. There was volume of agent insurance business as much as some RMB 1.3 billion yuan, with income from service charge of about RMB 70 million yuan, increased by 30% in comparison with that of last year. In 2001, there were 11 listed funds with the bank as trustee and trust fund volume of 17.8 billion fund unit, with total assets of RMB 17.3 billion yuan. Besides, there was trust fund income of RMB 41 million yuan, with the pre-tax profits of 22.6 million yuan.Bankcard business In 2001, bankcard business of the Bank increased rapidly, business volume expanded further, and network and product functions improved a lot. Till the end of the year, there were 66.23 million cards, in which there were 4.87 million credit cards and 61.36 debit cards, increased by 23.39 million in comparison with that of last year. Among the four state-owned commercial banks, its growth rate occupied the first place, and market share accounted for 23%. Card deposits balance added up to RMB 96.7 billion yuan, increased by RMB 39.8 billion yuan and up 69.94 in comparison with that of year. The accumulative trade volume was as much as RMB 2561.8 billion yuan, increased by some 140%. The accumulative consumption volume was RMB 24.8 billion yuan, increased by 68%. Receipt volume of international card was RMB 1.17 billion yuan, increased by 42%. There were 39923 business nets, 34969 online nets, 91359 special commercial customers and 53486 online customers, covering all cities, counties and towns all over the country.In 2001, the bank successfully developed added value service of debit card and joint cooperation programs, which promoted the rapid development of debit card business. On December 12th, it issued Jinsui International Debit Card, and became the first bank issuing PDC card in China. Jinsui International Debit Card consisted of two brands of PMC and PDC. Card owners could draw cash and check up in over 700 thousand ATMs with the mark of MasterCard/Cirrus among over 200 countries globally. PDC and PMC owners could shop in 5 million stores and 22 million special commercial stores throughout the world. International businessIn 2001, the bank utilized its advantages in funds, nets and brand, continued to strengthen operation network of international business, and developed oversea foreign currency market. Besides, it further strengthened the ability of international market business, actively promoted inter-bank business cooperation, and the international business made remarkable achievements. Balance of foreign currency deposits in China was as much as US$ 8.334 billion, and total assets of foreign currency added up to US$ 11.7 billion. The market share continued to rise, and growth rates of indices were in the first place among the four state-owned commercial banks. There was volume of international settlement business as much as 1.03 million, with amounts of US$ 43.42 billion, increased by 18% in comparison with that of last year. The growth rate was 10.5% more than that of foreign trade in the same period. The market share increased constantly. Functions of foreign currency business improved further, and there were more products. It put forward the product of international remittance business－Xilian Remittance. Besides, business such as foreign currency purchase and sale of personal firm offer, factoring, forfeiting, and risk management of foreign currency on behalf on clients was further extended. In 2001, the bank performed more actively in the transaction of international financial market, with operation funds as much as US$ 6.3 billion. It developed business such as bond investment, funds, commercial bill, currency option, interest rate option, and trust assets management. Volume of foreign currency business on behalf of clients was as much as US$ 25.3 billion, increased by US$ 3.5 billion in comparison to that of last year. In 2001, it established the relationship of overall or special business cooperation with a number of banks. And it offered excellent service of RMB capital clearing and financing for oversea foreign banks. Cooperation with oversea banks in business of export credit was strengthened. It lent 22 loan programs to foreign countries, with total amounts of US$ 75 million. Till the end of the year, it has established business agency relations with 485 bank headquarters and their 3500 branches throughout 64 countries.In 2001, there were 1,191 operation institutions of domestic foreign currency business, and 6124 foreign currency operation spots. HKD accounting center and USD accounting center were set up in Hong Kong Branch, greatly increasing the accounting speed of HKD and USD in Hong Kong. Besides, there were 84 agencies having SWIFT system, covering nearly all large and medium cities. Agricultural creditIn 2001, agricultural credit business of the Agricultural Bank of China encircled strategic adjustment of agricultural and rural economy to optimize structure and strengthen management. Accordingly, there was overall improvement in the quality and results of agricultural loan capital. Till the end of the year, loan balance in agricultural and rural field added up to RMB 866.1 billion yuan, increased by RMB 40.9 billion yuan in comparison with that at the beginning of the year. The percentage of agricultural non-performing loan sharply decreased. It actively support the development of agricultural industrialization, and invested loans of over RMB 20 billion yuan, mainly supporting qualified leading export-oriented enterprises of technology intensive type and of strong radiation ability.Risk managementIn 2001, facing the changed situation of domestic market after China’s entry into WTO, the bank strengthened the adjustment of client structure, and invested more loans into developed areas, advantageous industries and qualified clients. Besides, it strengthened the management of stock loan, and set up trinity credit management system with the unification of basic system, comprehensive system and individual business item. Furthermore, it strengthened e-construction of credit, improved credit management standards as well as effectively avoided and controlled credit risk with the help of modern information technology.In 2001, the bank was devoted to strengthening liquidity management of asset liabilities, and met the requirements of deposits payment and developing business, thus assets liquidity improved obviously. Balance of deposits and loans decreased by 3.4%, and the percentage between current assets and current liabilities increased by 5.99. Aiming at liquidity, it adopted the pattern of “centralized management and in the charge of different levels?E-ConstructionIn 2001, the bank actively implemented the strategic thinking of “science and technology taking the lead? and strengthened e-construction, obtaining outstanding achievements. Till the end of the year, there were 40270 computer spots and 36045 online spots, respectively accounting for 94% and 85%. And there were 5763 connected ATMs. In 2001, construction of provincial data centers made periodical achievements, which took the extension of new-generation comprehensive business operation system as the core. Online work was carried out smoothly. The bank fulfilled system reforms of bankcard network exchange center and put it into use. And “Union Pay?cards were duly issued. Internet banking service system has been extended to the market step by step. Besides, telephone banking system taking ?5999?as the united special service phone number in China has begun to be on trial in some branches.