OREANDA-NEWS. August 08, 2011. ICBC said that the Bank in Paris (France), Amsterdam (Netherlands), Brussels (Belgium), Milan (Italy) and Madrid (Spain) show impressive growth since their opening in January this year. All the five branches register profit in the first half of this year. This marks another historic record in terms of the speed of achieving profitability by the new overseas subsidiaries of a commercial bank across the world, reported the press-centre of ICBC.

The fast footprint of the five ICBC European branches has brought the European business of ICBC by leaps and bounds, said an executive with ICBC. Industrial and Commercial Bank of China (Europe) S.A. ("ICBC Europe") has generated nearly USD 10 million in total profit as of end of June. Being new subsidiaries of ICBC in the European market, these five branches not only successfully avoid being hit by the impact of the European debt crisis, but push ahead despite the complex and fierce market competition. They all register profit in less than six months since inception. Industry insiders pay homage to ICBC's globalization strategy and the Bank's ability to operate overseas business in developed countries.

It is difficult for overseas subsidiaries of a commercial bank to register profit during the first year when entering a new market, since this is a period of market cultivation. Normally it would take three years. ICBC carried out in-depth market study and made thorough preparation before setting up the five branches in Europe with an aim to gain presence in the shortest span. In order for the five branches to start operation soonest and work smoothly with all external and internal parties, ICBC reserved and consolidated the necessary business resources ahead of time, upgraded the IT system and assigned dedicated staff. More important, as the economic and trade relations between China and Europe have been progressing steadily, the five European branches of ICBC leverage ICBC's large global service network and cutting-edge IT platform and work closely with the domestic branches and other overseas subsidiaries. They provide safe, convenient, smooth settlement channels and financial support to the companies in China and Europe, and comprehensive financial services for Chinese enterprises to invest in Europe. As a result, they gain trust and support from the customers.

In terms of market expansion, the five European branches of ICBC are committed to a localization policy and move aggressively to tap into local market. The branches build up their own operation by looking at the delivery of unique financial service and products, marching to the "blue ocean". In terms of business development, ICBC Europe focuses on intermediary business besides the conventional asset business such as syndicated loan and trade finance. During the first half of this year, net income generated from the intermediary businesses (cross-border RMB settlement, investment banking, bank card and electronic banking) accounted for around 20% of the net income from operation. The five branches achieved optimal income structure.

The ICBC executive said, ICBC chooses to build a position in Europe because of the potential of Chinese banks to prosper. In the next step, ICBC will increase its footprint in Europe through continual innovation on financial products and expansion in business scope. While serving the "go global" Chinese enterprises and top European customers, efforts will also be spent in providing financial services across the border and integrated services to European companies. More emphasis will be placed on the retail banking sector. ICBC aims to beef up its brand and influence in local market in an effort to better "localize" its European business.