ICBC spreads global reach
Updated: 2007-10-18 11:16
 People pass an Industrial and Commercial Bank of China outlet in Shanghai. The bank plans to speed up its overseas expansion. [China Daily] |
The Industrial and Commercial Bank of China Ltd (ICBC), the country's largest lender by market value, is looking at mergers and acquisitions (M&As) to boost its fledgling overseas business.
It now plans to open branches in cities including New York and Moscow.
The bank's Moscow branch will be put into operation next month, and the lender has also applied to set up branches in Sydney, Dubai and Doha, ICBC Chairman Jiang Jianqing said yesterday in Beijing.
"We will extend our global reach both by setting up branches and through mergers and acquisitions, with acquisition being our major tool for expansion," said Pan Gongsheng, secretary to the ICBC's board of directors.
|
|||
But the company would not specify its takeover targets.
The ICBC plans to provide a wider range of financial products and services, such as loans and payment and trade financing for overseas expansion.
It is preparing internally for expansion, especially in information technology and talent reserves. The lender has begun to build an advanced information technology system three years in advance and has recruited local staff overseas in recent years.
Backed by its successful share reform and massive domestic initial public offering, the lender has improved management and strengthened capital base, which fueled its global expansion. With a market value of $337 billion, the ICBC has become a lot bolder in overseas expansions.
It bought a 90 percent stake from Indonesia's Bank Halim for $10 million last year to gain a foothold in the local market. The bank also seeks to expand into investment banking, insurance and private equity business once the country allows banks to operate in those areas, it said.
The lender has 16,807 outlets on the mainland and 98 overseas branches and offices. It also has 1,326 agent banks around the world.
It has seen immediate gains from a series of M&As in Hong Kong, and the ICBC (Asia) has moved into the No 6 position in Hong Kong by assets.
"The ICBC is expected to catch up with Citibank in profit figures by 2010," said Ge Jinbo, a banking researcher with United Securities.
|
|