GDB makes headway after share transfer
By Zhan Lisheng (HK Edition)

GUANGZHOU: Guangdong Development Bank (GDB) has made remarkable progress in the past half year since the completion of its share transfer to the Citigroup-led consortium.

In his recent work report to the provincial government of Guangdong, bank's president Michael Zink said that the bank had successfully adjusted the management team and modified the five-year development strategy plan in the past six months.

Zink is the second foreigner to head a Chinese bank in China. Jeffery Williams, also an American, was the president of Shenzhen Development Bank Co Ltd for 14 months before he resigned last year.

The bank aims to stop losses and begin to make profits within this year, to make its key business indices come up to the average standard of domestic joint-stock commercial banks in two to three years, and to become a leader of such banks in three to five years.

GDB's five-year development strategy plan is based on its market positioning and development prediction and has been approved by the board of the bank, he said.

In its move to adjust the management structure, he said, the bank has made the auditing system independent, which is expected to be conducive for the bank's internal supervision.

Under the new auditing system, auditors report directly to the auditing director, who will in turn report directly to the auditing committee of the board of the bank.

He said that the bank has also improved the management system in the light of the new banking supervision ordinances of the China Banking Regulatory Commission.

This year, he said, the bank would focus on developing personal banking business, financing business as well as corporate banking business.

"GDB aims to develop into a customer-centered innovative bank," he said. "We will improve service and offer differentiated products to our customers."

The Citigroup-led consortium signed a purchase agreement of 24.27 billion yuan with the GDB to acquire nearly 85.6 percent of the bank late last year.

The deal was said to be helpful for GDB to shed its non-performing loans, solve historical deficits, and increase its capital.

(HK Edition 06/21/2007 page6)