China Bohai Bank is to embark on its nationwide expansion this year by setting up new branches outside Tianjin.

"The first of our new branches will be located in Beijing," said Yang Zilin, chairman of the board of China Bohai Bank.

It's the first national joint-stock commercial bank established in China since 1996 and also the first national joint-stock bank headquartered in Tianjin.

The bank also plans to start six new branches in Tianjin's Binhai New Area. Besides its headquarters, the bank has six branches in Tianjin.

"We will strive to break even this year and earn profits from next year," he said on the sidelines of the annual session of the National Committee of the CPPCC.

The chairman hinted the bank would focus both on wholesale and retail banking services as its development strategy. But he said that as a new bank, it will rely heavily on wholesale banking services for profitability in the first few years.

"We will enhance our retail banking services this year to improve our competitiveness," he said.

According to him, China Bohai Bank has so far notched up deposits and outstanding loans of 10.5 billion yuan and 8.5 billion yuan respectively. Its assets are valued at over 16 billion yuan.

"We will take advantage of the regional economic development activity, namely Bohai Bay Rim and Tianjin's Binhai New Area, to strengthen our business in the coming years," Yang said.

Yang refuted the rumor that China Bohai Bank will collaborate with new foreign investors. "We are not and will not consider to introduce a second foreign bank as our strategic investor."

China Bohai Bank was the first of its kind to bring in overseas strategic investors in the preparatory stage.

It has a registered capital of 5 billion yuan. Tianjin Taida Investment Holding Co Ltd is the largest shareholder of the bank, occupying 25 per cent of the stake. Standard Chartered Bank is the second-largest, commanding 19.99 percent.

Commercial banks are allowed to attract foreign investors with up to 25 per cent of the equity.

Other shareholders include China Ocean Shipping (Group) Co, Shanghai Baosteel Group Corp, State Development and Investment Corp, Tianjin Trust and Investment Co Ltd and Tianjin Shanghui Investment (Holding) Co Ltd, with stakes of 13.67 percent, 11.67 percent, 11.67 percent, 10 percent and 8 percent respectively.

Source: China Daily