ICBC ME continues to build its business in the Middle East and gain market share.
ICBC ME has been profitable since it launched its regional operations in 2008. The Bank currently has a subsidiary office in Dubai, as well as branches in Abu Dhabi and Qatar, all contributing to the steady growth of its Middle Eastern business.
Commenting on the bank’s performance, Tian Zhiping, Regional CEO of the Middle East, said, “ICBC decided to establish a presence in the Middle East region based on its confidence in the GCC’s long-term economic outlook. In the three years since we launched, ICBC ME has successfully built a business in the region, offering commercial banking services to local entities, as well as supporting Chinese businesses operating in the Middle East.”
“As ICBC ME expanded its regional presence, we have been able to provide our clients with a trade and investment bridge between the Middle East and China. We are able to leverage our professional network in China on behalf of our Middle East clients, while also assisting Chinese clients looking to invest in dynamic Middle Eastern companies,” he added.
ICBC ME has created a financial services linkage covering major cities in the Middle East, as well as other economies in the MENA region. ICBC ME leverages the strength of all three entities to provide high-quality service to customers across the region.
With three banking licenses in the region, ICBC ME pursues opportunities with Chinese companies operating in this region, while also leveraging business contacts with leading local firms across the energy, infrastructure and telecommunications sectors.
ICBC has capitalised on growth of the Chinese economy and international trade volume in recent years and taken significant market share in the global Renminbi (RMB) market. ICBC ME has leveraged this business regionally, offering clients RMB deposits, clearing, settlement, trade finance, loans, foreign exchange with multiple currencies. 2011 saw a rapid expansion in ICBC’s RMB business and expects significant demand from customers in 2012.
ICBC ME plans to expand its presence in the Middle East over the next few years. It will do so with a focus on commercial banking, while striving to further develop its investment banking and asset management businesses.
ICBC ME has applied for two additional licences in the GCC to further these expansion plans.
2011 Detailed Performance
2011 pre-tax profit reached $32m, up from $15m in 2010 and representing a 111% year-over-year increase.
Operating income was up to $49m, compared to $25m, representing a year-over-year increase of $24m or 96%.
Net fee and commission income also grew to $10m for 2011, compared to $7.79m in 2010, or a 31% increase.
As of 31 December 2011, total assets stood at $3.06bn, a year-over-year increase of $1.82bn or 146%. The balance of loans and advances which was $2.63bn in year 2011, increased by $1.57bn compared with year 2010, representing a year on year increase of 148%. Balance of Deposits at year-end was $84m, representing an increase of 114% compared to the year-end 2010.
The total liabilities reached $2.97bn, an increase of $1.79bn compared with 2010, representing an increase of 152%.
Tian Zhiping concluded, “We have seen strong demand for our products and advisory business in the Middle East and will look to build our business both through increased market share and regional expansion. We believe that the trade relationship between China and the Middle East will continue to grow and we are well-positioned to fully leverage this growth for our clients and our business.”
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