Hana Bank's China unit logs 7-fold net growth in 2010

By Kim Young-gyo
HONG KONG, June 20 (Yonhap) -- Hana Bank, the flagship of South Korea's No. 4 banking group Hana Financial Group Inc., said Monday its Chinese subsidiary registered a seven-fold profit growth in China in 2010 on a substantial gain in interest income.
Hana Bank China registered a net profit of 72.6 million yuan (US$11.2 million) last year, up 609 percent from 10.2 million yuan a year earlier, bank officials said, adding its revenue was 299 million yuan.
The Beijing-based lender was established in December 2007 with a capital of 2 billion yuan. It has established branches in Shanghai, Qingdao, Yantai, Shenyang, Changchun and Harbin.
The officials said Hana Bank China's deposits grew steadily, contributing to its bottom-line surge. Its deposits came in at 2.75 billion yuan at the end of last year, up 45.1 percent from a year earlier.
The deposit growth was attributed to its localization strategy.
"Hana Bank China concentrates its resources on developing clients such as China's large enterprises and state-owned enterprises," Kim In-hwan, head of the Chinese subsidiary, said.
"As of the end of 2010, our Chinese customers deposits and total loans accounted for 62.7 percent and 52.5 percent, respectively."
Kim added that Chinese employees make up 93.1 percent of the company's workforce in China, marking the highest proportion of local staff among South Korean banks in China.
ygkim@yna.co.kr