Banking News
- Industrial Bank seeks retail growth
Date: 24-Jan-2007 Sources: (Shenzhen Daily)
INDUSTRIAL Bank said Monday that it plans to significantly boost its retail banking business by using part of the US$2 billion proceeds to be raised from its Shanghai initial public offering.
The aims to derive 30 percent of its total profits from retail banking in four years, its president Li Renjie told investors at an online roadshow for its IPO.
Li didn't disclose the percentage of profit now contributed by its retail division, which industry sources said was currently standing at about 10 percent.
'The key to growing our retail business is to grow our sales power and to build a bigger service network,'Li said.
Both foreign and Chinese lenders are scrambling to boost retail services such as credit cards and mortgages in an effort to get a slice of the country's roughly US$2 trillion of personal savings.
Tang Bin, the bank's board secretary, said the bank plans to open more than 150 new outlets by 2010. The bank currently operates about 300 outlets across the country.
The bank also plans to use proceeds from the IPO to support its network expansion, improve the lender's information technology system and boost its capital adequacy ratio, Li said.
The bank, a mid-sized but fast-growing institution based in the prosperous southeastern province of Fujian, said it will issue A shares at 15 yuan (US$1.93) to 15.98 yuan apiece, the low end of market expectations of roughly 15-20 yuan, to raise US$2 billion in what would become the mainland's fourth-largest domestic IPO.The bank also said it will issue fewer shares than the market expected.
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