Citibank is forecasting a 10 per cent increase in revenue from its Hong Kong business next year and a 17 per cent increase in net profit.
But the biggest single contributor to profit - corporate banking - would show only limited growth due to the tight lending market, said Citibank country corporate officer and head of global corporate banking, T. C. Chan.
At a briefing yesterday on Citigroup's Hong Kong operations, Mr Chan said pressure on loan spreads and subdued loan demand in Hong Kong was expected to continue into the new year.
'We will only be able to grow that business [corporate lending] in a very limited way - in the low single digits,' he said.
But he said external trade was growing strongly, and Citibank had been benefiting from the SAR's role as conduit for trade, which would mean strong growth in trade-related services.
'In cash management, we believe interest rates will probably stay high and both growth revenue and fee-based revenue related to cash management will show very significant growth,' he said.