HK bank reaps profit within the first year

Within a year of opening, the first Hong Kong bank in Luxembourg has become a profitable investment.

Chekiang First Bank, headed by Luxembourg's Honorary Consul in Hong Kong, James Z. M. Kung, opened a branch in the Grand Duchy last September.

'In less than a year it is making money,' Mr Kung said. 'When a bank opens a branch or subsidiary it usually takes a couple of years to break even. But we managed to keep our costs tightly controlled to achieve the break- even point in under half that time.' With 15 branches in Hong Kong, Chekiang First Bank has only one other overseas branch - in San Francisco.

'We opened in Luxembourg so some of our customers could benefit from the financial services there,' Mr Kung said.

'However, for the time being, we are only involved in deposit-taking'.

Wealthy clients were taking advantage of the opportunity to make offshore deposits, he said.