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April 1, 2008 |
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BANK OF SHANGHAI: Seeks to Improve Services to SMEs Bank of Shanghai will provide better financial services for local small enterprises in the future, said its assistant to president He Qing at a press conference for small enterprises held on March 18. He said that the bank would still regard lending to small enterprises as a strategic emphasis in 2008 in spite of the nation's tightening monetary policy, aiming to meet small enterprises' borrowing demand first. Loans to small enterprises this year are predicted to leap 67%, five times the bank's total lending growth. Presently, loans offered to small enterprises make up about 10% of the bank's total corporate lending, which is expected to double within three years. Moreover, to encourage its sub-branches to offer loans to small enterprises, the well-performing bank pegs achievement appraisal of the sub-branches' executives on the fact if the sub-branches can achieve the target of granting a certain amount of loans to small enterprises. Now, the Shanghai bank is brewing the adjustment of its business structure. In November 2007, it established an investment banking division, mainly providing services, like venture capital, private equity investment, merger and acquisition, and domestic and overseas listing, for well- performing small enterprises. The bank plans to conduct an investigation to its nearly 10,000 small enterprises customers in the city first and then make contact with venture capital firms and private equity firms at home and abroad. Meanwhile, Bank of Shanghai hopes its intermediary business proportion to double within the following five years. Presently, intermediary business revenue accounts for merely 5% of the bank's total revenue and especially, the high value-added takes a comparably lower proportion. With registered capital of CNY2.6 billion, the bank's total assets had stood at CNY321.2 billion by 2007-end, renminbi deposits CNY257.9 billion and renminbi loans CNY149.9 billion. Pre-tax profits in 2007 were CNY3.24 billion. As of the end of 2007, the well-run bank had opened branches in Nanjing, capital city of east China's Jiangsu province, and Hangzhou, capital city of southeast China's coastal province Zhejiang. Also, the bank has filed applications for incorporating outlets in Sichuan, a southwestern province in the country, and Tianjin, a municipality in northern China. In addition, Bank of Shanghai will expand its business to Yangtze River Delta Region, Pearl River Delta Region and then become a nationwide player in the future two to three years. As a joint-stock commercial bank set up on Dec. 29, 1995, the Bank of Shanghai features a two-level operating structure within one legal entity, with the paid-up capital booked at RMB2.6 billion, comprising government-owned shares and shares held by corporations and by numerous individuals. As previously reported by Troubled Company Reporter-Asia Pacific on Sept. 3, 2007, Fitch Ratings affirmed on August 31, 2007, the ratings of Bank of Shanghai, showing: (a) Long-term foreign currency Issuer Default rating at BB- with Stable Outlook; (b) Short-term foreign currency IDR at B; (c) Individual D; (d) Support at 3; and (e) Support Rating Floor at BB-. |
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