Wing Hang Bank, a Hong Kong-listed mid-sized lender, aims to boost its return on equity to 20 per cent in three years by expanding its mainland and Macau operations, according to chairman Patrick Fung Yuk-bun.
Mr Fung, who is also Wing Hang's chief executive, said the mainland would be a key market where the bank would put more focus on.
Partly helped by its mainland and Macau businesses, Wing Hang's return on equity increased to 18.9 per cent last year from 17.1 per cent a year ago.
Wing Hang is raising up to US$400 million from the sale of subordinate bonds, and Mr Fung said part of the proceeds would be used to fund its mainland expansion and refill capital after acquiring Inchroy Credit Corp, a car financing firm, in January.
The bank has obtained an initial approval from the China Banking Regulatory Commission to set up a locally incorporated subsidiary in Shenzhen, which he said would be open for business as soon as this quarter.
Mr Fung said the bank would like to have a presence in major mainland cities, but its focus would remain in southern China initially.
It would target high net worth individuals once it gained approval to run yuan-denominated banking services.
