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BoCom doubles with HSBC help
30.04.08
China's Bank of Communications, part-owned by HSBC, has doubled its first-quarter profits amid a booming economy.
HSBC's expertise is proving a big asset as the bank shifts more resources to consumer banking, and demand for credit cards and wealth management increases.
BoCom outlined its plans to cement a position as a financial conglomerate covering leasing, asset management, insurance and securities within three years.
Vice president Qian Wenhui said today the bank was "open" to all acquisition opportunities in the financial industry at home and abroad.
Net profit was 7.9 billion yuan (£552.4 million). Outstanding loans grew 6.3%, with net interest income rising 50% to 16.5 billion yuan.
BoCom's results follow strong figures fromits peers. Industrial & Commercial Bank of China has posted a 77% gain in first-quarter profit and Bank of China 85%.
Beijing has raised interest rates in a bid to take some of the heat out of the economy. However, this has had limited impact.
