Date
22 May 2017
Shanghai Commercial Bank will use more of its own property, rather than rent new premises, says chief executive David Kwok (R). Photo: HKEJ
Shanghai Commercial Bank will use more of its own property, rather than rent new premises, says chief executive David Kwok (R). Photo: HKEJ

Shanghai Commercial Bank mulls rejig of self-owned property

Shanghai Commercial Bank (SCB), a Hong Kong-based privately-owned lender, is seeking to restructure its self-owned property portfolio, the Hong Kong Economic Journal reported.

The bank conducted a ‘topping out’ ceremony Tuesday for its new headquarters tower at Queen’s Road Central, with plans to move into the building in the second half of this year. 

Given the digitalization in the banking sector, SCB will be cautious in opening new branches, chief executive David Kwok Sek-chi said, adding that the lender will seek to use more of its own property rather than rent new premises. 

The bank owns three old buildings on Catchick Street in Sai Wan. It intends to demolish the properties later this year and redevelop, though the plans are yet to be finalized.

Meanwhile, three Kwai Chung building floors that the bank is acquiring — a deal is expected to be closed by the end of this month — will be used as support and information technology services center for the bank.

SCB posted HK$1.9 billion after-tax profit for 2014, up 6.3 percent over the previous year. Net interest income rose 14.1 percent to HK$2.52 billion as net interest margin expanded 13 basis-points to 1.81 percent.

Loan impairments, meanwhile, dropped 45 percent to HK$13.3 million. 

Translation by Vey Wong

[Chinese version中文版]

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