Bank of East Asia, the city's fifth-largest lender, plans to boost its mainland branch network within three years by 166 per cent to 80, including through potential acquisitions now being studied, according to chairman and chief executive David Li Kwok-po.
Mr Li said the rapid expansion from the current 30 branches will take advantage of the opening of the mainland's retail banking market to foreign institutions from December 11, as required by the country's agreement with the World Trade Organisation.
BEA has yet to apply to become formally incorporated in the mainland - something required by the China Banking Regulatory Commission policy announced last week for foreign banks seeking to enter the retail market - 'but we have every document ready', Mr Li said.
The mainland's contribution to BEA's bottom line has become increasingly important. The sector's net earnings surged 80 per cent in the first six months of the year, accounting for 15.4 per cent of the HK$1.57 billion first-half net profit.
In August, Mr Li said he wanted the mainland to account for 40 per cent of the group's overall profit by the end of the decade.
Standard Chartered Bank has applied for domestic incorporation in China while HSBC, Citibank and Hang Seng Bank have said they intend to file.