China Bohai Bank is to embark on its nationwide expansion
this year by setting up new branches outside Tianjin.
"The first of our new branches will be located in Beijing," said Yang Zilin,
chairman of the board of China Bohai Bank.
It's the first national joint-stock commercial bank established in China
since 1996 and also the first national joint-stock bank headquartered in
Tianjin.
The bank also plans to start six new branches in Tianjin's Binhai New Area.
Besides its headquarters, the bank has six branches in Tianjin.
"We will strive to break even this year and earn profits from next year," he
said on the sidelines of the annual session of the National Committee of the
CPPCC.
The chairman hinted the bank would focus both on wholesale and retail banking
services as its development strategy. But he said that as a new bank, it will
rely heavily on wholesale banking services for profitability in the first few
years.
"We will enhance our retail banking services this year to improve our
competitiveness," he said.
According to him, China Bohai Bank has so far notched up deposits and
outstanding loans of 10.5 billion yuan and 8.5 billion yuan respectively. Its
assets are valued at over 16 billion yuan.
"We will take advantage of the regional economic development activity, namely
Bohai Bay Rim and Tianjin's Binhai New Area, to strengthen our business in the
coming years," Yang said.
Yang refuted the rumor that China Bohai Bank will collaborate with new
foreign investors. "We are not and will not consider to introduce a second
foreign bank as our strategic investor."
China Bohai Bank was the first of its kind to bring in overseas strategic
investors in the preparatory stage.
It has a registered capital of 5 billion yuan. Tianjin Taida Investment
Holding Co Ltd is the largest shareholder of the bank, occupying 25 per cent of
the stake. Standard Chartered Bank is the second-largest, commanding 19.99
percent.
Commercial banks are allowed to attract foreign investors with up to 25 per
cent of the equity.
Other shareholders include China Ocean Shipping (Group) Co, Shanghai Baosteel
Group Corp, State Development and Investment Corp, Tianjin Trust and Investment
Co Ltd and Tianjin Shanghui Investment (Holding) Co Ltd, with stakes of 13.67
percent, 11.67 percent, 11.67 percent, 10 percent and 8 percent respectively.
(China Daily 03/06/2007 page14)
