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HK Union Bank Gains Profits
The Industrial and Commercial Bank of China (ICBC) said today that the Hong Kong Union Bank, which ICBC acquired in April, has turned losses into profits, gaining 84 million HK dollars in the first six months.
A spokesman for ICBC said that after the acquisition, ICBC adopted measures to support the development of Union Bank. The latter's businesses and major financial indices have been largely improved.
The Union Bank was founded in 1964 in Hong Kong and was listed on the Hong Kong Stock Exchange in 1973. By the end of 1999, it had total assets of 21.4 billion HK dollars, with 22 local branches and one overseas branch.
ICBC signed a contract with China Merchants (Holdings) Ltd., the Union Bank's controlling shareholder, on April 19 in Hong Kong on the acquisition of a controlling stake in the Union Bank. The deal was clinched on July 14. ICBC paid 1.804 billion HK dollars to buy some 240 million shares of the Union Bank at a price of 7.52 HK dollars per share.
The spokesman said ICBC will continue to support the Union Bank's capital financing and handling of non-performing assets.
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