Bank of America 2005 Annual Report Download - page 21
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Please find page 21 of the 2005 Bank of America annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.s part of a long-term strategic investment in one of the world’s fastest-growing
economies, Bank of America finalized an innovative partnership with China
Construction Bank in 2005. Under the agreement, Bank of America became a
significant shareholder in, and long-term strategic partner of, China Construction
Bank. Bank of America associates will work with China Construction Bank to provide advice
and assistance to the Beijing-based bank.
Investing in China’s growth
China Construction Bank investment opens doors in one of the world’s fastest-growing economies
A
How We Grow: Recognizing Opportunities
China Construction Bank has built a leading fran-
chise in China, the world’s fourth-largest economy. Both
partners see significant added value in combining China
Construction Bank’s local knowledge and distribution with
Bank of America’s product expertise, technology and experi-
ence in managing growth and scale.
The partnership with China Construction Bank will
enable Bank of America to better serve our multinational
clients who do business in China. We also expect to find
opportunities in China’s consumer market, which currently
includes a growing population of more than 1.3 billion
people. In 2006, we hope to establish a joint venture
between China Construction Bank and Bank of America to
provide credit cards in China.
China Construction Bank is the third-largest com-
mercial bank in China, with $522 billion in assets and
$467 billion in deposits. It has 146 million active retail deposit
account relationships, a national network of 14,250 branches
concentrated in the more economically developed areas of
the country, and relationships with 97 of the top 100 enter-
prises in China. It is China’s largest mortgage lender and has
leading positions in credit cards and infrastructure loans.
Bank of America bought approximately 9 percent of
China Construction Bank stock for $3 billion. Under the
terms of the seven-year agreement, it has the option of
increasing that stake to 19.9 percent in the future.
This is just one example of how we are recognizing
opportunities to expand our business.
20 Bank of America 2005
How we grow by recognizing opportunities
One part of Bank of America’s growth
strategy is to identify, invest in and
acquire businesses that combine with
the bank’s core strengths to create
greater organic growth opportunities.
With credit cards becoming increas-
ingly important, partly due to online
purchasing, Bank of America’s MBNA
acquisition positions us as a dominant
player in payments. The value of such
positioning becomes even clearer as we
help our new partner, China Construc-
tion Bank, leverage its strong market
position to become a leader in credit
cards and other diverse consumer
products in one of the world’s fastest-
growing economies.
These investments demonstrate
the power of growing by recognizing
important strategic opportunities.