Industrial Bank to diversify into funds, leasing

Industrial Bank Co<601166>, a second-tier Chinese lender partly-owned by a unit of HSBC Holdings Plc<5>, on Thursday said it plans to form a fund venture with partners including France's Natixis Global Asset Management SA and may set up a RMB 2 billion (US$280 million) leasing company in Tianjin.

Industrial Bank plans to take a controlling stake of 57% in the planned RMB 300 million venture, while Natixis will own 33% and the residual will be held by a local company, said the Chinese lender in a statement filed to the Shanghai Stock Exchange.

In addition, it is considering buying a 20% stake in Jiujiang City Commercial Bank at no more than 1.93 times the local lender's book value at the end of 2007.

The lender, who has been actively diversifying its business portfolio recently, saw its net profit surged 126.04% to RMB 8.59 billion last year, according to its annual report released today.