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Japan’s Mizuho exiting Hong Kong

Hong Kong
Bank of East Asia, Chikiang First Bank, Merrill Lynch, Mizuho Financial Group
Mergers & Acquisitions

(Hong Kong) – Japan’s Mizuho Corporate Bank Ltd is trying to sell its wholly owned Chikiang First Bank, reflecting the intense competition toward the bottom of the Territories’ lending market.Bank of East Asia appears to be one of several banks interested in tendering for Chikiang First Bank (CFB), which had a book value of HK$4 billion (US$512.9 million) toward the end of 2002. Merrill Lynch is assisting in the sale process of CFB whose net profit for last year dropped a modest 6.3 percent from 2001 to HK$207 million.

Overdue and under performing loans of the Bank, established in 1950, accounted for 1.92 percent of its total portfolio.

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