GUANGDONG DEVELOPMENT: Unveils Five-Year Restructuring Plan
Company Reporter, June 15, 2007
Guangdong Development Bank has set a
five-year restructuring plan launched by a Citigroup-led consortium
which took over the bank last December, MarketWatch reports, citing the
The main aim of the plan is to make the bank profitable this year, the
report says, while it's broad goals for the next five years
is to reach
the average levels of its Chinese bank peers for all major operational
indicators in the next two to three years and become a leader among
mid-sized Chinese banks also within three to five years.
According to the bank, The Guangzhou-based lender said its board adopted
the five-year development strategy at a meeting in late May. However,
it didn't provide specific details on numerical targets or say whether
the bank plans to launch an initial public offering in the future, Rick
Carew of the MarketWatch notes.
Guangdong Development Bank will focus this year on expanding its
personal banking, wealth management, and corporate banking business,
including small-and medium-sized enterprise lending, the report adds.
The bank also said it retooled its auditing structure to boost its
independence and adopted new policies on legal compliance and
On November 21, 2006, the Troubled Company Reporter - Asia Pacific
reported that Citigroup has won the bid for a majority stake in
Guangdong Development Bank, ending an 18-month bidding war with the
Societe Generale of France. Citigroup took 86% stake in
Guangdong for US$3.1 billion.
Guangdong Development Bank -- http://ebank.gdb.com.cn/ --
bank based in Guangzhou, Guangdong, People's Republic of China.
The bank was founded in 1988.
Fitch Ratings on August 14, 2006, affirmed Guangdong Development
Bank's Individual 'E' and Support '4' ratings.
On April 16, 2007, Moody's Investors
Service put on review for
possible upgrade Guangdong Development Bank's E+ Bank Financial
Strength Rating and B1 long-term deposit rating.