OREANDA-NEWS. February 21, 2012. Speaking at press conference, Dr. David K.P. Li, Chairman & Chief Executive of the BEA Group, said: “In the wake of the Global Financial Crisis, the BEA Group made a strategic decision to focus resources on the economies of the Greater China region. Since then, we have executed according to plan, and I am very pleased to announce that this strategy has enabled us to exploit pockets of strength in an otherwise weak global economy”, reported the press-centre of BEA Group.

In Hong Kong, total loans to customers continued to grow in 2011. This was largely due to strong loan demand from Mainland Chinese enterprises. BEA capitalised on this demand to expand its lending portfolio and increase margin on both new borrowings and renewals.

Focussing on the Greater China markets, the Group’s Mainland subsidiary, The Bank of East Asia (China) Limited (“BEA China”) is quickly reaching critical mass. During 2011, the subsidiary recorded a rise in profit after taxation of 60.0 percent year on year. Income grew much faster than expenses, with the cost-to-income ratio falling from 61 percent in 2010 to 55 percent in 2011.
 
BEA China continued to expand in 2011, and celebrated the opening of its 100th outlet during the year. It now manages a well integrated network in key regions including the Yangtze River Delta and Pearl River Delta, and extending to 30 cities across the Mainland.

Having met the statutory loan-to-deposit requirements for Mainland-incorporated foreign banks ahead of schedule in the first half of 2011, BEA China’s lending was no longer constrained by the need to improve the loan-to-deposit ratio. The subsidiary’s net interest income grew by 43 percent in 2011 and at the end of the year, its loan-todeposit ratio stood at 69 percent, well below the statutory limit of 75 percent.

Overseas, the Group’s business enjoyed a healthy rebound in 2011, with operations in Singapore, London, and the United States all recording strong results. Much of this business came from new business opportunities. BEA’s Singapore Branch, for example, doubled its Renminbi (“RMB”) business turnover. BEA will continue to launch new RMB products and services, and exploit opportunities by leveraging the strength of its Greater China operations in 2012.

Dr. Li commented: “Improvements in core lending business will remain a key focus of the Bank’s operations in 2012. We will continue to be a good partner for the small and medium size enterprise sector. At the same time, BEA will step up efforts to develop its wealth management, insurance, and treasury services to further increase fee income.”

While BEA anticipates subdued economic activity in the near term, Dr. Li concluded that “we are confident that our focus on the Greater China region, and our rich knowledge of the local market, will continue to yield good opportunities for our future business expansion.”