Foreign bank growth in China doubles
(19 July 2012 – China) Despite a subdued economic outlook, China’s 181 foreign banks more than doubled their earnings to 16.7 billion yuan (A$2.5 billion) last year, up from just 7.8 billion yuan in 2010.
A report by PriceWaterhouseCoopers (PwC) showed that despite the rapid growth, the market share of the foreign banks in China remained under 2 percent - increasing from 1.83 percent to 1.93 percent - underlining the dominance of Chinese state-owned banks in a highly regulated environment.
In contrast, China's largest bank by market capitalisation, the Industrial and Commercial Bank of China, reported a profit of 61.3 billion yuan for the first three months of 2012.
The PwC report highlighted ANZ's aggressive plans to expand its branch network and increase lending in China through a A$300 million cash injection.
ANZ, which has by far the biggest presence in China of the Australian banks, with 500 China-based employees, has announced the opening of a ''sub-branch'' in Guangzhou's Tianhe district. It now has seven outlets in China and plans to increase to 20 over the next 10 years.
PwC said the growth experienced by foreign banks was driven by strong demand for corporate credit from multinationals expanding within China, and an increasing number of state and privately owned enterprise customers.
Internationalisation of the yuan with strong demand in derivative trading from financial institutions and corporate clients also helped drive results.
In contrast, China's largest bank by market capitalisation, the Industrial and Commercial Bank of China, reported a profit of 61.3 billion yuan for the first three months of 2012.
The PwC report highlighted ANZ's aggressive plans to expand its branch network and increase lending in China through a A$300 million cash injection.
ANZ, which has by far the biggest presence in China of the Australian banks, with 500 China-based employees, has announced the opening of a ''sub-branch'' in Guangzhou's Tianhe district. It now has seven outlets in China and plans to increase to 20 over the next 10 years.
PwC said the growth experienced by foreign banks was driven by strong demand for corporate credit from multinationals expanding within China, and an increasing number of state and privately owned enterprise customers.
Internationalisation of the yuan with strong demand in derivative trading from financial institutions and corporate clients also helped drive results.
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