Profits for foreign banks in China are increasing, but the gap with Chinese rivals is still wide, at a time when the hiring war has raised costs.
A report by KPMG reveals that net profits for the 33 foreign banks present in the People's Republic grew by an average of 24% in 2010. However, performances are mixed, with a third of the institutions reporting losses or a decline in profits. Furthermore, those who finished the year with a positive sign are still far from the peak recorded in 2008.
For example, among the banks analyzed in the report, the profits of the Chinese unit of HSBC Holding, the largest foreign group with a presence in Beijing, increased by 28% to 922 million yuan (106 million euros), about half of what was collected in 2008. Standard Chartered instead reported net profits of 384 million yuan, down 9% on the previous year and well below the 638 million recorded in 2008. Quite other numbers reported the Chinese Industrial & Commercial Bank of China, with a 28% jump in profits to 165,16 billion yuan, after a 16% increase in 2009.
http://www.theaustralian.com.au/business/world/rising-costs-bite-foreign-banks-in-china/story-e6frg90o-1226141576947
