Macau’s top banks honored for innovation and excellence

The Industrial and Commercial Bank of China, Macau (ICBC Macau) and Bank of China, Macau (BOC Macau) have been recognized as the top banking institutions in Macau, receiving prestigious awards from World Finance.

The British magazine awarded ICBC Macau “Best Bank Banking Group” in Macau for 2024, marking the fifteenth time the bank has received this accolade since its establishment. Alongside ICBC, BOC Macau also earned the “Best Retail Bank” and “Best Commercial Bank” awards for Macau in 2024.

These achievements highlight the performance, and development of both ICBC and BOC Macau, as the banking industry navigates multiple fundamental challenges – including rising interest rates, a slowing global economy, new financial technologies, and embedded finance, as well as ensuring cybersecurity amidst growing cyber threats.

“In this ever-changing environment, the Best Bank Awards recognize the financial institutions that offer the broadest range of services, long-term reliability, and technological innovation,” said Joseph D. Giarraputo, founder and editorial director of World Finance.

In 2023, Chinese banks faced a tough year. Consumer borrowing for mortgages loans or everyday purchases were down. The government also pushed banks to give lower interest rates, with lending initiatives targeting strategic sectors. In addition to banks making less money on loans, net interest margins (NIMs) – which contracted by 22 basis points (bps) over the course of 2023, extending the decline from 2022 – put significant pressure on the sector.

According to World Finance, the situation was even worse in Macau, where it found the number of loans that weren’t being repaid surging dramatically, with nonperforming loans (NPLs) skyrocketing from the pre-pandemic level of 0.26% to 3%.

In response, ICBC Macau transformed its operations, optimized its balance sheet by reducing assets and liabilities, and generated more revenue from non-lending activities. ICBC Macau aligned its strategy with the policy objectives of the Macau government and the ICBC Group’s global strategy. This involved promoting local operations and accelerating the bank’s digital transformation.

“Technology, data, and talent are the most important production factors for providing enormous momentum, especially for the development and innovation of financial business,” said chairman Gao Ming.

ICBC Macau was regarded by World Finance as taking “a strategic approach focused on long-term sustainability and innovation.” The bank’s “basing on Macau, integrating into the Greater Bay Area, expanding in Portuguese-speaking countries and extending to the countries along the Belt and Road route” strategy continued to guide its operations in 2023.

To support its global ambitions, ICBC Macau leveraged online corporate banking services to create cross-border and cross-currency fund products.  They also built a comprehensive global cash management system encompassing 104 countries/regions and 61 currencies, facilitating annual settlements exceeding MOP1 trillion.

On the other hand, ICBC Macau’s fintech transformation accelerated the bank’s digital reform on customer service and business channels, with its e-banking service now accounting for over 80% of its total business.

“Digitalization serves as the critical momentum of future development in the banking industry. It is also the key for ICBC (Macau) to foster innovation and stride ahead in the market,” added Gao.

Similarly, BOC Macau has leveraged its extensive network and expertise to provide innovative financial solutions to both individual and corporate customers, earning recognition for its excellence in retail and commercial banking services.

Whilst BOC Macau has a longer history in Macau, dating back to just under a century, ICBC Macau, established in 2009, is the largest locally registered bank. It is also a subsidiary of the Industrial and Commercial Bank of China. BOC Macau, meanwhile, is a top retail and commercial bank in the region.

Both ICBC Macau and BOC Macau continue to transform and innovate their digital products and services, meeting the evolving needs of their customers in the GBA. ICBC Macau leverages its global reach and expertise in corporate banking, while BOC Macau focuses on its strong local presence and retail banking expertise. Nadia Shaw