ICBC Middle East's profit and assets double

Dubai: The Industrial and Commercial Bank of China (ICBC) Middle East, a unit of the world's largest bank in terms of assets, profits and market capitalisation, yesterday announced that its 2011 pre-tax profit reached $32 million (Dh117.5 million), up from $15 million in 2010, a 111 per cent increase.

The bank's operating income was $49 million, up 96 per cent over the $25 million reported a year ago.

ICBC ME has been profitable since it launched its regional operations in 2008. The bank currently has a subsidiary office in Dubai as well as branches in Abu Dhabi and Qatar.

"ICBC decided to establish a presence in the Middle East region based on its confidence in the GCC's long-term economic outlook. In the three years since we launched, ICBC ME has successfully built a business in the region, offering commercial banking services to local entities, as well as supporting Chinese businesses operating in the Middle East," said Tian Zhiping, regional CEO for the Middle East.

Net fee and commission income grew to $10 million last year from $7.79 million in 2010. As of December 31, 2011, total assets stood at $3.06 billion, a year-over-year increase of $1.82 billion.

Chinese companies

Loans and advances increased 148 per cent to $2.63 billion as deposits grew 114 per cent to $84 million. Total liabilities reached $2.97 billion, an increase of $1.79 billion over 2010, an increase of 152 per cent.

With three banking licences, ICBC ME pursues opportunities with Chinese companies operating in this region. The bank is also active in doing business with leading local firms across the energy, infrastructure and telecommunications sectors.

Last year saw a rapid expansion in ICBC's yuan business and expects significant demand from customers in 2012.

"ICBC has capitalised on growth of the Chinese economy and international trade volume in recent years and taken significant market share in the global renminbi (yuan) market. ICBC ME has leveraged this business regionally, offering clients renminbi deposits, clearing, settlement, trade finance, loans, foreign exchange with multiple currencies," the bank said in a statement.

ICBC ME plans to expand its presence in the Middle East over the next few years.

The bank said that it has ICBC ME has applied for two additional licences in the GCC.

The bank's focus area for expansion in the region will include commercial banking, investment banking and asset management businesses.