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Etude PwC sur les banques étrangères en Chine 2012

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7ème rapport de PwC sur les banques étrangères en Chine.
Toutes nos publications sur les banques et marchés de capitaux : http://www.pwc.fr/banques_et_marches_de_capitaux1.html

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Etude PwC sur les banques étrangères en Chine 2012

  1. 1. www.pwc.comForeign Banks in China17 July 2012Mervyn JacobFinancial Services Leader for China & Hong KongWilliam YungFinancial Services Advisory Partner for China
  2. 2. Introduction• Surveyed 41 CEOs, senior executives and branch managers• Seventh survey since 2005• Interviews conducted in Beijing, Hong Kong, Shanghai & Shenzhen from April to May 2012Foreign Banks in China 2012 17 July 2012PwC 2
  3. 3. ParticipantsANZ Commonwealth Bank of AustraliaBanco Santander Credit SuisseBank of America Merrill Lynch Dah Sing BankBank of Montreal DBS BankBarclays Bank Deutsche BankBBVA First Sino BankBNP Paribas Hang Seng BankBNY Mellon HSBCCrédit Agricole ING BankCitibank Intesa SanpaoloCommerzbankForeign Banks in China 2012 17 July 2012PwC 3
  4. 4. Participants (cont’d)JPMorgan Chase Royal Bank of CanadaKBC Bank ScotiabankMizuho Corporate Bank Société GénéraleNational Australia Bank Standard Chartered BankNatixis The Bank of East AsiaNorddeutsche Landesbank UBSNordea VTB BankOCBC Bank Wells Fargo BankRabobank Westpac BankRaiffeisen Bank International Wing Hang BankForeign Banks in China 2012 17 July 2012PwC 4
  5. 5. GrowthForeign Banks in China 2012 17 July 2012PwC 5
  6. 6. Foreign banks in China• Profits more than doubled to RMB 16.73 billion in 2011• Total assets up 23.6% to RMB 2.15 trillion• Market share remains stable• 181 foreign banks operating in ChinaForeign Banks in China 2012 17 July 2012PwC 6
  7. 7. Doubling in profitability in 2011Foreign Banks in China 2012 17 July 2012PwC 7
  8. 8. Growth drivers• Strong demand for credit among MNCs expanding within China• Increased business from Chinese SOEs and private enterprises - Expanding offshore, favouring foreign banks and their global networks• RMB internationalisation driving demand for derivative trading services among financial institutions and corporatesForeign Banks in China 2012 17 July 2012PwC 8
  9. 9. Strong growth outlook till 2015• Most expect revenue growth of at least 20%• 17 forecast revenue to be above 30%• 24 banks predict revenue growth of 20% or higher in 2012• Four target growth areas – FI, MNC, SOE & POE Foreign Banks in China 2012 17 July 2012 PwC 9
  10. 10. Debt capital markets offer greatest futureopportunityPwC 10
  11. 11. Interest rate liberalisation seen as advantageous• Euro zone crisis and subdued state of US economy speeding RMB liberalisation• Greater volume of RMB settlements• China recently signed several multiple currency swap agreements• Long term opportunities in cross-border settlements and cash management PwC 11
  12. 12. Shanghai as an IFCForeign Banks in China 2012 17 July 2012PwC 12
  13. 13. Foreign banks support Shanghai’s IFC ambition• Support Shanghai’s ambition to become an IFC - foreign banks’ market share 12% in Shanghai - several banks have announced capital injections• RMB internationalisation & interest rate liberalisation key to achieving this• Half of the foreign banks interviewed say Shanghai’s ambition has already influenced their business strategyForeign Banks in China 2012 17 July 2012PwC 13
  14. 14. Shanghai as an IFC – a compelling caseKey figures 2011 (for Shanghai):• GDP grew 8.2%• US$437 billion in foreign trade flows• 1,048 banking institutions, including 173 foreign firms• Presence of central equity, foreign currency, futures and gold exchangesMajor opportunities for foreign banks:• Goal of becoming a top five derivatives trading hub globally by 2015• Financing for key industries: shipping, transport and infrastructure• Growing volumes in trade financing, treasury and tradingForeign Banks in China 2012 17 July 2012PwC 14
  15. 15. TalentForeign Banks in China 2012 17 July 2012PwC 15
  16. 16. Expected staff turnover in 2012• Staff turnover to pick up even more• Movements within foreign banking industry• Talent shortage remains top concern; impacting top line growth• Salaries continue to escalate; over half of respondents forecast increase between 8% - 10% in 2012Foreign Banks in China 2012 17 July 2012PwC 16
  17. 17. Where do they want to recruit?• Respondents looking increase headcount to 55,000 by 2015 (from 35,000 currently)• Priority positions - Relationship bankers (on the corporate side) - Risk management - Treasury - Legal/compliancePwC 17
  18. 18. ChallengesForeign Banks in China 2012 17 July 2012PwC 18
  19. 19. The top challenges – a five year trendForeign Banks in China 2012 17 July 2012PwC 19
  20. 20. Other foreign banks emerging as competitorsPwC 20
  21. 21. Major drivers of change in China’s bankingindustry• Regulatory concerns continue to impact foreign banks• Funding constraints (foreign debt quotas also a challenge)Foreign Banks in China 2012 17 July 2012PwC 21
  22. 22. Concern over expansion & complexity ofregulations• Fee-based income• Cross border settlement restrictions• Staged approval process• Restrictions on level of investment in local banks and securities companies• Chinese Basel III• Loan loss provisions• Capital requirements• Funds distribution license• Access to the bond marketForeign Banks in China 2012 17 July 2012PwC 22
  23. 23. China’s regulators seen as supportivePwC 23
  24. 24. Summary• Commitment to China returns to pre-crisis level• More growth opportunities as China shifts to a domestic-consumption driven economy• Buoyant revenue growth expected over next three years• Internationalisation of the renminbi & interest rate liberalisation - major opportunities• Emphasis on organic growth• Growing employment and turnover• Tighter regulations & talent shortage major challenges• Overall, China continues to be a critical and important marketForeign Banks in China 2012 17 July 2012PwC 24
  25. 25. Thank youThis content is for general information purposes only, and should not be used as a substitutefor consultation with professional advisors.© 2012 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of itsmember firms, each of which is a separate legal entity. Please see www.pwc.com/structure forfurther details.
  26. 26. www.pwc.comForeign Banks in China17 July 2012Mervyn JacobFinancial Services Leader for China & Hong KongWilliam YungFinancial Services Advisory Partner for China

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