Hankou Bank must diversify income sources to ensure continued growth
Zhu Yongtong, CEO and President of Hankou Bank discusses the bank’s main growth drivers and efforts to boost SME lending to technology firms based in Wuhan. November 26, 2012 | Baron LaudermilkHankou Bank, the largest commercial bank in Wuhan, China, is experiencing rapid business development – due to Wuhan’s booming industrial economy and the bank’s increased credit lending to state-owned businesses as well small-medium sized enterprises (SMEs). The bank’s fast-paced growth in the last few years has also propelled it into the ranks of The Asian Banker’s 2011 “Largest Growth in Deposits” category (coming in at 20th place), and seen it add more than 68% to deposits in one year. The bank held more than $138 billion in assets in 2011, and is among the strongest banks in Asia Pacific, mainly due to its high return of equity (ROE) and Return on Assets (ROA). Zhu Yongtong, Hankou Bank’s chief executive officers and president, pointed out that the bank’s investment in mobile and online banking technologies and its staff has been one of the main reasons for the bank’s rapid growth. While Hankou Bank has improved its mobile banking capabilities, it is hardly as efficient and flexible as China’s big-four banks. Regardless, the bank has been able to keep its cost-to-income ratios fairly low, sitting at 32.22% in 2011. According to Zhu, this figure will likely increase as the bank continues to invest in risk management and mobile technology. The bank has also hired additional staff to meet increased demands, with total staff numbering at 2,168 people. Zhu said that 50% of the bank’s expenditure goes to staff salaries, with another 15-20% spent on banking technology. According to Zhu, Hankou Bank plans to automate its systems and target mobile and online users. The wealth management segment is also playing a more prominent part for Hankou Bank, as Wuhan citizens begin to move up the economic and social ranks. However, becoming a wealth management powerhouse in Wuhan will be a challenge, as many high-net-worth individuals prefer to invest their money in China’s big-four banks, which offer may more types of products and ... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: China, Mobile Banking, Retail Banking, SME Banking, Wealth ManagementChina,Mobile banking,retail,SME Banking,Wealth Management, China,Mobile Banking,Retail Banking,SME Banking,Wealth Management, Keywords:Hankou Bank, Zhu Yongtong, HNWI Hankou Bank, Zhu Yongtong, HNWI
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