Bank enters new field
WING Hang Bank is to venture into the hire purchase business to diversify its income sources, and is also considering entering the underwriting insurance business.
In a bid to generate more non-interest income, the bank has just secured $540 million through a five-year floating rate Certificates of Deposit (CD) issue to finance its hire purchase venture.
Non-interest income made up 22 per cent of the bank's income last year. Its main sources were from foreign exchange trading, treasury operations, its brokerage business, insurance brokerage and trade finance commission.
The CD issue signed yesterday was the bank's third issue to procure medium-term funding.
The capital adequacy ratio was 18 per cent, well above the internationally required eight per cent.