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ICBC (Asia) sets sights on expansion

By Lillian Liu and Zhang Jin (China Daily)
Updated: 2006-08-10 09:27

HONG KONG: In a two-pronged growth strategy, the Industrial and Commercial Bank of China (Asia), the Hong Kong-listed arm of the mainland's largest lender, plans to boost its presence in the coming years through organic growth and acquisitions, a senior executive said yesterday.

"We will continue to boost our presence (in Hong Kong)," said Zhu Qi, managing director and chief executive officer of the ICBC (Asia).

The bank, which currently operates 38 branches in the city, plans to increase that number to 50 within five years, Zhu told reporters yesterday.

The ICBC (Asia) opened a flagship branch yesterday morning in Central, Hong Kong's prime financial area.

The ICBC (Asia), Hong Kong's sixth-largest lender in terms of assets, also said it would not give up any opportunities to expand.

"We plan to carry out another merger in Hong Kong in the coming one or two years, if there is a good chance," he said, without elaborating.

The ICBC (Asia) acquired Fortis Bank Asia HK's retail and commercial banking operations on April 30, 2004. Fortis Bank Asia HK was then renamed Belgian Bank and became a wholly owned subsidiary of the ICBC (Asia).

Its latest merger took place last August, when it acquired Shenzhen-based Chinese Mercantile Bank, in a bid to expand into mainland-related business.

Zhu said that Chinese Mercantile Bank's assets increased by 50 per cent as a result of the ICBC (Asia) purchasing the bank.