Most foreign banks in China expect 20% growth in revenue
2012-07-17 16:36:22
Despite China's slowing economy, most foreign banks in the world's second largest economy say they expect revenue to grow by 20 percent or more through 2015, according to a survey by PricewaterhouseCoopers (PwC).
The survey covered executives from 41 banks.
There are 181 foreign banks in China.
According to official data, they more than doubled their profits last year to US$2.6 billion compared to 2010.
PwC says the increase was due to strong borrowing demand from multinational corporations expanding in China and a growing number of domestic enterprise customers.
Profits also got a boost from increased demand in derivatives trading, with China pushing to internationalise its currency.
Mr Mervyn Jacob, China & Hong Kong Leader, PwC Financial Services, said: "The foreign banks are looking to adjust their strategies as China's own strategies shift to their own domestic consumption-driven economy.
"They are targeting different sectors for different reasons - MNC's, state-owned enterprises, private enterprises and also financial institutions. So the foreign banks are becoming more nimble and strategic in identifying the best areas for them to grow faster and more importantly to grow profitably."
Foreign banks have struggled to find solid footing in China because of strict regulations and restrictions.
The survey also shows the respondents' commitment to China has returned to pre-financial crisis levels.