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It has been a busy 12 months for this great Hong Kong achiever, and his latest accolade brings 2006 to a satisfying close

Business Person of the Year

David Li Kwok-po

Bank of East Asia Chairman

DAVID LI HAS A mantelpiece that must be as crowded as his famously full appointments' diary - and last night he added another trophy to the formidable display when he took home Hong Kong's Business Person of the Year award.

Finding wall space to show off the DHL-SCMP 2006 Business Person of the Year certificate he received at a ceremony in the Grand Hyatt Hotel will not be easy.

It will have to compete for space with the multitude of testimonials and trophies awarded to a man who serves on 73 government, civic and corporate boards or committees, is a fellow of seven professional institutes, has accumulated five honorary doctorates and has on display the Gold Bauhinia Star presented by Hong Kong's chief executive in 2001.

He also holds the Officier de la Legion d'Honneur, awarded by former French president Jacques Chirac in 2004, and the Knight Bachelor award, which he received from Britain's Queen Elizabeth. If that's not enough, he is also a recipient of the Order of the Rising Sun, bestowed by the Japanese government in a busy 2005.

This year has been no less busy. Apart from last night's Business Person of the Year award, he was made a Grand Officer of the Order of the Star of Italian Solidarity, and took the Leader of the Year award in the finance category from the Sing Tao News Corporation.

But then Dr The Hon. Sir David Li Kwok-po, to give him his full title, is a man accustomed to challenges - not the least being the need to dash from his chairman's office in the Bank of East Asia (BEA) headquarters on Des Voeux Road in Central to the nearby Legislative Council offices, where he represents the financial constituency and sits on the Council's key Financial Affairs Panel.

In an interview with the South China Morning Post, Mr Li said that his greatest achievement was building the Bank of East Asia from a small family-owned bank into a publicly listed billion-dollar enterprise.

'Together with my colleagues I have been able to build BEA from a small bank into a bank with a market capitalisation of US$8.25billion,' he said.

'We have been able to carve out a strong niche position, even though there is intense competition with so many large international banks in town.'

Ranked next to this accomplishment, he said, was the group's aggressive expansion into China under his stewardship.

This strategic target once divided the board. After  the collapse of the government-owned International Trust and Investment Corporation and a

tidal wave of mainland loans turning bad, the opposition to the China focus seemed to be vindicated.

But Mr Li stayed the course, even though at the time China was not in favour with international investors.

'As a result, we now have 31 outlets in China - more than any other foreign bank under its own name,' he said.

Only the HSBC group outranks this presence if its branches and those of its subsidiary, Hang Seng, are added together.

It is this expansion and the plans on the drawing board for further growth that has put Mr Li's stamp on the bank, and by which his business record will be judged.

BEA branch numbers will grow to more than 60 in the next three to five years. And while China contributes 12 per cent to 15 per cent of the group's bottom line, he sees that share growing up to 30per cent in that time.

Another of his satisfying achievements was the decision to step outside the comfort zone of what comes naturally to bankers - making loans - and buying the company secretarial and business service firms that now form Tricor Holdings.

'BEA seized an opportunity created by the shedding of such businesses by the major accounting firms in the wake of Enron. The timing was excellent because Tricor has benefited from the growth in public listings on the Stock Exchange of Hong Kong in recent years.

'Also, the acquisition helped enlarge the BEA group's fee income base and cross-referral business opportunities,' he said.

Outside the work environment it is his wider political and social activities that give him most satisfaction.

'I was fortunate to be in a position to play an instrumental role in seeing through several important structural reforms in the banking sector in Hong Kong, including the establishment of The Hong Kong Monetary Authority, the creation of a central clearing house and the creation of a lender of last resort,' he said.

'These measures led to a more level playing field for the banking industry in Hong Kong. As such, they were essential for Hong Kong to grow in stature as an international financial centre.'

He also takes satisfaction from the role he played in forcing the government's hand and having estate duty scrapped in Hong Kong.

'We have seen a significant rise in fund management activity in Hong Kong since estate duty was abolished last year, and prospects for future activity are excellent as more mainland wealth comes under professional management,' he said.

But how does he cope physically and mentally with the wide responsibilities he has taken on board?

'I suppose the two most important factors are that I enjoy what I do and that I have been active and involved in a wide range of pursuits throughout my life. I don't like being bored. Engagement is what keeps me active and enthusiastic.'

As chairman, he attends regular BEA management meetings and receives regular reports on new business initiatives and updates on performance.

'However, I believe the most effective way to run an organisation - especially one growing at the rate of the Bank of East Asia - is to hire good people and delegate to those you trust,' he said.

His job is to create opportunities. 'Others in our organisation also create opportunities, but my outside involvements - not just in Hong Kong but worldwide - probably give me more exposure than other members of our staff. I think I have been quite successful in demonstrating the capabilities of Bank of East Asia to our clients and potential clients throughout the world.'

The grand vision he has pursued as chairman and before that, as chairman and chief executive, is to be the premiere bank serving Chinese communities and business throughout the world.

'As such, we have a strong base in Hong Kong; a large presence on the mainland and a network of branches in Taiwan, Macau and overseas Chinese communities in North America and Europe. And we will continue to grow within this framework.'

China will continue to occupy much of his attention and that of BEA management, and the focus has now been sharpened by the relaxation (on December 11) of  the final obstacles in the way of foreign banks providing full banking services to all customers in China.

BEA has submitted an application for the establishment of a local subsidiary bank based in Shanghai, which will allow the bank to conduct mainland currency business relationships with local individuals.

To pave the way for providing personal banking and wealth management services to local individuals, BEA had made the following preparations:

foreign-currency investment products were offered to local individuals two years ago, following the liberalisation of restrictions on foreign currency business with local individuals;

personal banking representatives had been trained in Hong Kong to take up positions on the mainland, and many have already completed all required professional examinations;

the bank's early start in the QDII (Qualified Domestic Institutional Investor) scheme enabled it to create market awareness of its expertise in personal banking and wealth management;

co-operation agreements were concluded with local insurance companies to distribute their products; and the bank had increased its ad-spend in China to create brand awareness, selling the message: 'We come from Hong Kong and serve the entire China market'.

judge's comment

'David Li has steered Bank of East Asia through a steady expansion progress throughout his stewardship, and has achieved phenomenal results for the group. Equally impressive has been his enormous contribution to the financial and banking industry, and for his many political and public service contributions to Hong Kong over the years. His personal stature, both locally and internationally, has made him an outstanding citizen of Hong Kong.'

K.S. Lo

Great Eagle Holdings deputy chairman and managing director and Business Person of the Year for 2005

biography

David Li

1939 Born in London and later obtained a master's degree in arts (economics and law) from the University of Cambridge

1969 Joined the Bank of East Asia, Limited (BEA)

1985 to present  Representative, Finance Constituency, Legco

1997 Appointed chairman of BEA

2001 Awarded the Gold Bauhinia Star

2004 Awarded the Officier de la Legion d'Honneur

2005 Appointed a member of the SAR Executive Council. Awarded Knight Bachelor in the United Kingdom's Queen's Birthday Honours List and The Order of the Rising Sun by the Japanese government

2006 Awarded Leader of the Year 2005 in the finance category by Sing Tao News Corporation. Awarded Grand Officer of the Order of the Star of Italian Solidarity by the Italian Republic

bank of east asia milestones

Background

Incorporated into Hong Kong in 1918

Is Hong Kong's largest independent local bank

Is listed on the Hong Kong stock exchange and is one of the constituent stocks of the Hang Seng Index

Has more than 7,200 employees around the world

Operates a global network of more than 170 outlets covering Hong Kong and the rest of Greater China, the United States, Canada, the United Kingdom, the British Virgin Islands and Southeast Asia

Financial performance

In 2005, BEA achieved record results for the second straight year. Net profit amounted to HK$2.75 billion, representing a rise of 17 per cent compared to the net profit recorded in 2004

For the six months to June 30 this year, BEA recorded net profit of HK$1.56 billion, an increase of 32.3 per cent over the same period in 2005

Total consolidated assets amounted to HK$263.3 billion (US$33.91 billion) as of June 30, 2006, growth of 24 per cent over the figure reported on June 30 last year



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All in a year's work for banking dynamo