Doha Bank aims to triple China lending
Qatari lender counts on Gulf states' growing ties with the mainland and HK to spur business with a view to forming local partnerships
Doha Bank, the third-largest commercial bank in Qatar by assets, seeks to triple its lending in China as a prelude to possible tie-ups with banking partners on the mainland and in Hong Kong.
The Qatari bank believes growing bilateral investment between Gulf Co-operation Council countries and the mainland and Hong Kong will help boost its presence in Greater China and provide opportunities for setting up relationships with lenders in the area.
Chief executive Raghavan Seetharaman said he expected Doha Bank's lending on the mainland and Hong Kong to grow from US$350 million currently to US$1 billion in three years, and believes it could soar further to US$3 billion if economic growth on the mainland is maintained at 7.5 per cent or above for five years.
"The US dollar is weakening and the yuan is being globalised," Seetharaman said. "Chinese banks would like to unwind from dollars and I foresee they will need partners. That could give us an opportunity to enter into closer relationships."
In seeking closer tie-ups with mainland lenders, the Qatari bank will go against the trend of United States firms such as Bank of America and Goldman Sachs, which offloaded their equity investments in Chinese banks.
Seetharaman said Doha Bank would increase its exposure in the region either through organic growth or buying loan portfolios from other lenders as a first step, but thereafter he would not rule out the possibility of an equity tie-up with a local lender.