Industrial and Commercial Bank of China Middle East (ICBC ME) has released its trading results for the full year ended December 31, 2011, making it one of the most successful year to date.

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

Tian Zhiping, regional CEO of the Middle East, said: “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.”

“As ICBC ME expanded its regional presence, we have been able to provide our clients with a trade and investment bridge between the Middle East and China. We are able to leverage our professional network in China on behalf of our Middle East clients, while also assisting Chinese clients looking to invest in dynamic Middle Eastern companies,” he said.

The bank has created a financial services linkage covering major cities in the Middle East, as well as other economies in the Mena region.  It leverages the strength of all three entities to provide high-quality service to customers across the region, said a statement. 

With three banking licenses in the region, it pursues opportunities with Chinese companies operating in the region, while also leveraging business contacts with leading local firms across the energy, infrastructure and telecommunications sectors. 

ICBC plans to expand its presence in the Middle East over the next few years.  It will do so with a focus on commercial banking, while striving to further develop its investment banking and asset management businesses, the statement said. 

ICBC ME has applied for two additional licences in the GCC to further these expansion plans, it said.

The 2011 pre-tax profit reached $32 million, up from $15 million in 2010, representing a 111 per cent year-over-year increase.

Operating income was up to $49 million, compared to $25 million, representing a year-over-year increase of $24 million or 96 per cent, the results showed. 

Net fee and commission income also grew to $10 million for 2011, compared to $7.79 million in 2010, or a 31 per cent increase.

As of December 31, 2011, total assets stood at $3.06 billion, a year-over-year increase of $1.82 billion or 146 per cent. The balance of loans and advances which was $2.63 billion in year 2011, increased by $1.57 billion compared with year 2010, representing a year-on-year increase of 148 per cent. 

Balance of deposits at year-end was $84 million, representing an increase of 114 per cent compared to the year-end 2010.

Total liabilities reached $2.97 billion, an increase of $1.79 billion compared with 2010, representing an increase of 152 per cent. 

“We have seen strong demand for our products and advisory business in the Middle East and will look to build our business both through increased market share and regional expansion,” Zhiping said.

“We believe that the trade relationship between China and the Middle East will continue to grow and we are well-positioned to fully leverage this growth for our clients and our business,” he concluded. – TradeArabia News Service