THE Guoco Group and subsidiary Dao Heng Bank Group is still awaiting approval for a residential project in Shanghai in which it has invested about US$60 million, says Kwek Leng-hai, managing director of both groups. He said the project would comprise more than 1,000 units and was being carried by the Guoco group and a subsidiary First Capital Corp, a Singapore property company. The group's prospects would continue to be strong, including the performance of the Dao Heng Bank Group. Member company First Capital Corp would also do well, he said. Barring unforeseeable events, another year of profitable performance by the group for the financial year 1994-95 was anticipated. Regarding the bank's credit card business, Mr Kwek said the past year had seen 200 per cent growth. The bank would engage only in margin trading when requested by customers. Mr Kwek said the acquisition of Overseas Trust Bank was in line with the group's development policy. The public listing of the Dao Heng Bank Group in December 1993 represented a significant step in enhancing the group's overall position and earnings growth, he said, adding that this plan was part of the company's corporate strategy. Mr Kwek said another part of the strategy was developing an Asian group whose core businesses comprised financial services, manufacturing and property investment/development. 'It calls for emphasis on the development of the group's manufacturing activities, and for continued solid growth for its financial service and property businesses through both organic growth and suitable acquisitions.' The group's growth in the coming year would be slower, Mr Kwek said, due to various factors such as the unfavourable investment climate. There was tough competition in the banking industry and the group would try to develop new banking products to increase its competitiveness.
