HSBC Holdings plc, one of the world's largest banking and
financial services organizations, said its first-half earnings
surged by nearly 70 percent on the mainland after the bank gained
almost unlimited access to renminbi retail business earlier this
year.
The lender, among the first batch of banks to kick off their
local incorporation business in April, reported a jump of 69
percent in pre-tax profit to $473 million on the mainland, compared
with an average 13 percent climb around the globe between January
and June.
Hong Kong-based Hang Seng Bank, which started as a local entity
in late May, also reported an 86 percent surge in operating income
on the mainland in the first half, along with a 21.3 percent
increase in loans and 42.7 percent rise in deposits.
Local-entity status is expected to help other overseas banks to
generate satisfactory growth on the mainland.
"We have reinforced HSBC's position as the leading international
bank on the mainland," Stephen Green, group chairman, said
yesterday in a statement.
"Our operations on the mainland following local incorporation
grew strongly, with deposit and asset growth of over 50 percent and
26 percent respectively over the same period last year," he
said.
The bank, largest in Europe by asset value, added seven outlets
on the mainland in the first half and recruited more than 800 new
staff members.
"As a result of its leading position in wealth management, our
business there was well positioned to benefit from the buoyant
stock market and the steady flow of mainland companies listing on
the Hong Kong stock exchange," Green said.
Increased overseas investment through Hong Kong into the
mainland boosted the city's services and property sectors and
provided further opportunities for HSBC to generate revenue growth,
he added.
(China Daily July 31, 2007)
