Standard Chartered Plc, a British bank that earns most of its
money in emerging markets, doubled income and tripled profit in
China last year on the back of the country's fast-growing economy
and loosening controls on foreign financial players.
According to a statement released yesterday, the London-based
lender had its total income more than double to almost US$300
million in 2006 in China, with its profit three times larger than
that of 2005.
Overseas banks are gaining considerable profits as they have
wider access to the nation's individual customers following opening
of the banking sector on December 11 to meet World Trade
Organization entry commitments.
Standard Chartered performed well in China last year, the
London- and Hong Kong-listed bank said yesterday.
"2006 was certainly a year of rapid progress for our organic
business and our performance has continued to be strong," said
Katherine Tsang, CEO of the bank's China operation.
"2007 promises to be equally exciting. With local incorporation,
the launch of many new products and our accelerating investment to
expand our network and infrastructure, we believe we will be able
to offer even more and better service to our local customers this
year," she added.
Along with eight other overseas financial institutions, Standard
Chartered has been approved to form a locally incorporated entity,
which is expected to soon launch its business.
Throughout 2006, the bank released more than 100 new products
for its consumer and wholesale banking customers, while its network
expanded to cover 22 locations in 14 cities.
Since the beginning of the year, the bank has launched retail
branches in Nanjing, capital of East China's Jiangsu Province and
Chengdu, capital of Southwest China's Sichuan Province. It also
opened a sub-branch in Shanghai in January and received approval to
have an outlet in Chongqing Municipality.
Chief Executive Officer Peter Sands said on Tuesday that the
lender remains optimistic about China, even though it is still a
"relatively small market" for the bank.
"2007 will be an important year for us in China," he said.
"China will have bumps. We know how to navigate them."
The bank plans to offer private banking and incorporate to offer
currency services, as well as credit and debit cards to
individuals.
(China Daily March 1, 2007)