PricewaterhouseCoopers: Foreign Banks have Strong Income Growth in China

   Recently, according to Foreign Banks in China issued by PricewaterhouseCoopers, most foreign banks in China are expected to acquire strong income growth in the next few years, and the average annual income growth rates of a number of banks are expected to up to 40-50%. During 42 foreign banks, the revenue growth of 9 is expected to double in 2008.
Although most of the large global banks have set up branches in China, the report still expects that there will be more foreign banks entering the Chinese market, only a few of which will withdraw from China. The result shows that by 2011 the number of foreign banks in China will reach 100.
   With China’s gradual integration into the global economy, the impact of market volatility and the global economic slowdown attract the concern of foreign banks in China. Nevertheless, during the 40 foreign banks being interviewed, 38 expected that the profits would be higher than current level in next three years.
     Liang Guowei, the executive partner on financial service of PricewaterhouseCoopers China, pointed out that although foreign banks in China were facing many challenges, opportunities and prospects remained positive. More than 80% of the interviewees said that considering the products services, operating capabilities and global customer relationships of the banks, they had full confidence in the increase of their market shares.