Ping An Creates a Single Brand for Its Commercial Banking Business
Ascribes Full Interest in Ping An Bank Through Shenzhen Commercial Bank
SHENZHEN, China--(BUSINESS WIRE)--Ping An Insurance (Group) Company of China Ltd. ("Ping An Group"; 2318.HK) announced that its subsidiary Shenzhen Commercial Bank has reached respective agreements with Ping An Trust and Investment Co., Ltd. and The Hongkong and Shanghai Banking Corporation Ltd ("HSBC") under which Ping An Trust and HSBC will respectively transfer their holdings of 73% and 27% in Ping An Bank to Shenzhen Commercial Bank. The move is part of Ping An Group's strategy to unify branding identities of its commercial banking operations. The agreements are subject to approvals by a shareholder meeting of Shenzhen Commercial Bank and by the China Banking Regulatory Commission.
In accordance with requirements of the regulatory authorities and Ping An Group's strategic planning, following completion of the share transfers the Group will gradually integrate management systems of its commercial banking operations in an effort to develop its commercial banking business under a single brand name and a unified platform.
Since joining forces with Ping An Group to acquire Ping An Bank, HSBC has been helping Ping An Bank implement a strong computer network system and has provided technical support for establishment of a credit and risk management system. In the recent years, Ping An Bank has been rapidly developing its capabilities by assembling an international management team and a sophisticated operation platform. Ping An Group believes that this ownership transfer and integration strategy will enable it to create momentum for its commercial banking operation, growing this business into an integral pillar of the Group's business portfolio.
Ping An Bank was originally established as Fujian Asia Bank Ltd in 1993. It was acquired jointly by Ping An Group, through Ping An Trust and Investment Company, and HSBC for less than US$20 million in 2003. Since then, Ping An Trust has increased its ownership in the bank to 73%, while HSBC adjusted its ownership to 27%. Ping An Bank has over the years developed a strong business platform, thanks to the effective support from its shareholders and supervision by its international management team which is managed in accordance with global best practices. In 2005, Ping An Bank relocated its headquarters to Shanghai from Fuzhou. In 2006, it received an additional RMB200 million capital injection from HSBC and Ping An Trust and was authorized by the China Banking Regulatory Commission to offer RMB business to institutions.
Contact:
Ping An Insurance (Group) Company of China, Ltd.
Ms. Alex Xiao
Tel: 86-755-22623452
Fax: 86-755-82414817
Ms. Cathy Hua
Tel: 86-755-22627219
Fax: 86-755-82414817
