Overseas banks in Shanghai posted strong growth in profits for the first six months of this year because confidence recovered following the end of the global financial crisis, the local banking regulator said Tuesday.
The combined profits for the overseas lenders in the city totaled 4.8 billion yuan (US$750 million) in the first half of this year, an increase of 2.47 billion yuan from a year ago.
The profits are close to what they have achieved for the whole of 2010, according to the Shanghai Bureau of the China Banking Regulatory Commission.
The local regulator also pointed out that overseas banks are poised to boost their investment in Shanghai for the first time since the outbreak of the global financial crisis.
Overseas banks are also planning to add branches in the city in future. This comes after they trimmed the number of outlets in 2009 and 2010 amid the global financial crisis.
At the end of June, there were 76 branches, 96 sub-branches and 89 representative offices of overseas banks in Shanghai, officials said.
Meanwhile, four overseas banks have applied to strengthen their operational capital, and up to four more lenders are also expected to apply later this year.
"The expansion of network and capital demonstrates the strong confidence the headquarters of overseas banks have in the China market," the local regulator said.
