Great China expansion
Wing Hang Bank plans to grow its business in the mainland and Macau through acquisitions, according to chairman and chief executive Patrick Fung Yuk-bun.
Given their fast growing economies and targeted rates of expansion, the mainland and Macau were likely to account for 25 per cent to 30 per cent of the group's assets in three years' time from about 20 per cent presently, Mr Fung said.
Wing Hang posted record interim net profit up 32 per cent to $700.62 million. Mr Fung said the profit contribution from the mainland was still relatively small and the bank's presence there had yet to achieve economies of scale. Also, tax was higher than in Hong Kong. However, group operations in Macau had already provided better returns.
'As both markets are fast growing, we will devote more resources to them and expand our business,' he said.
Loan growth in the mainland was 26 per cent while Macau's was 10.5 per cent.