China’s largest bank to expand in to Pakistan

Industrial and Commercial Bank of China focusing on emerging markets.,


Reuters April 15, 2011

SANYA:


Industrial and Commercial Bank of China Limited (ICBC), the world’s biggest bank by market value, plans to increase its global footprint by setting up new branches in countries such as Brazil, India and Pakistan, according to bank chairman on Thursday.


However, ICBC is not considering acquiring European banks in the near term, Chairman Jiang Jianqing told Reuters in an interview ahead of the Boao Forum in the southern province of Hainan.

The bank aims to draw 10 per cent of its assets and profit from overseas operations by 2016, up from four per cent now, he informed.

“Over the next several years, we will mainly look at emerging countries and consider their economic potential, growth rate and extent of trade relations with China,” he said, adding, “Emerging countries are our regions of choice.”

ICBC has been aggressive, compared with other Chinese banks in boosting its overseas presence through acquisitions and establishing branches, although on a much smaller scale than its western competitors. It acquired 80 per cent of Bank of East Asia’s US business in January for $140 million.

The bank also opened five branches in Europe this year and has applied to open one in Peru.

Published in The Express Tribune, April 15th,  2011.

COMMENTS (3)

imran raza | 12 years ago | Reply it is a good decision from the management of ICBC to come into the banking sector of Pakistan.Diplomatic and trade relations between both countries are very strong.This is the right decision to come to the banking sector of Pakistan.ICBC will also play a good role to increase the economy of pakistan where industry growth is slow and unemployment is increasing.Being an industrial and commercial bank,it will play a good roll to the industry sector of Pakistan where new job opportunitis will be created.It means it will be a good contribution in the economy of Pakistan.
Rahim @ financeworld.pk | 12 years ago | Reply ICBC operating in Pakistan will help in facilitating imports & exports between the two countries. Let's see what strategy will be decided by them for running their operations smoothly in Pakistani banking market. As now a days acquisitions and mergers are the largest activitiy in Pakistani banking industry.
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