HKCB Bank in talks to buy up to three consumer finance related businesses

HONG KONG (AFX-ASIA) - HKCB Bank Ltd said it is in talks to buy up to three local consumer finance related businesses, the Hong Kong iMail reported, quoting managing director Raymond Lee.	    "Consolidation in the industry is inevitable and we have been looking into some acquisitions since late last year," he said.	    Lee said the bank is not in any takeover talks. In addition, the bank's two largest shareholders have no plans to sell the bank.	    He said HKCB Bank's non-performing loans are expected to fall to 7-8 pct of total lending by the middle of this year from 9.0 pct.	    The bank will focus on developing middle class consumer clients in preparation for the deregulation of interest rates in July, he said.	    "I don't believe small banks will have no room to survive in the future but they will have to differentiate themselves and target one particular segment."	    Lee said HKCB has no plans to introduce service fees, and that it has only recorded "several hundred new clients" in the first quarter after larger banks like HSBC decided to impose service fees.	    The bank posted single digit growth in its personal and small and medium sized enterprise loan business, and a slight increase in mortgages in the first quarter, he said.	    "I don't see rate cuts having a significant effect in stimulating loan demand in Hong Kong, as it depends largely on the economic atmosphere." 

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