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China Construction Bank, one of the country's big four state-owned commercial banks, said Sunday it would put key emphasis on the development of its overseas business over the next few years.
The bank, which earned 51.2 billion yuan (US$6.2 billion) in profits last year before setting aside provisions for bad loans, plans to take a lead in the country to go public among the big four, which includes the Industrial and Commercial Bank of China, the Agricultural Bank of China and Bank of China.
The bank obtained US$22.5 billion in government subsidies at the end of last year to increase its capital adequacy.
China Construction Bank President Zhang Enzhao said the bank has to beef up its international presence to ensure coordinating development of both domestic and overseas businesses.
"Our goal is to establish a modern commercial bank with good corporate governance and sound performance which will make us a competitive heavyweight in the global financial market," Zhang said in an exclusive interview with China Daily.
"China Construction Bank plans to establish more overseas operations in coming years," he said.
The bank has already established branches in Hong Kong, Singapore, Japan, Frankfurt and Johannesburg and representative offices in London and New York, Zhang said.
The bank also holds a 5.17 percent stake in CITIC Financial Holdings.
"We are now preparing to open a branch in Seoul," he said.
In Hong Kong, China Construction Bank plans to restructure its resources to realize 100 per cent control over Jianxin Bank.
By the end of last year, total assets for the bank's overseas branches reached US$7.2 billion. Pre-tax profits after setting aside provisions for bad assets by these branches stood at US$27.8 million.
The bank has developed 869 agent banks in 100 countries and regions, ensuring a good business coverage to all the country's leading trade partners, Zhang said.
To back the further expansion of the bank's overseas business, the bank reshuffled its international business department last year.
"We aim to increase the market share of the foreign exchange deposits business by more than 0.3 percentage points this year and next," he said.
"We also plan to increase the international settlement business by 30 per cent annually before the end of next year."
Last year, the bank signed US$200 million worth of export buyers credit business contracts with the Foreign Trade Bank of Russia.
The bank also signed a contract with the Federal Reserve Bank of Russia to deal with border trade settlements.
It also signed an all-around business cooperation contract with China Export & Credit Insurance Co to help more Chinese companies expand their overseas business.
(China Daily January 19, 2004)
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