CITIC Ka Wah Bank says Q1 operating profit growth in double figures

HONG KONG (AFX-ASIA) - CITIC Ka Wah Bank Ltd has recorded double digit growth in its three months to March operating profits, president and chief executive officer, Cai Zhongzhi said.	    Speaking to reporters at the launch of the bank's strategic alliance with Sun Life of Canada, he said the the constant interest rate cut since the beginning of the year had squeezed the bank's interest income.	    However, "the bank has found other profit sources to boost our bottom line," he said.	    Cai did not identify the bank's alternate source of profits. 	    CITIC Ka Wah will give details of its results when it releases its first half results later this year.	    He said amid tough competition in the banking industry, the growth of the bank's deposits and lending had been slowing down.	    In addition, since the beginning of this year, the bank has been slowing the pace of boosting its assets, which have been recording double digit growth in the past three years.	    "However, starting from this year, the bank has shifted its focus to enhance its asset management and to improve its asset quality. So we are slowing down the pace (at which we) increase the size of our assets."	    Cai said so far the bank has no merger and acquisition targets.	    "But we are still looking for an opportunity for merger and acquisition. We have no details for now."	    As for the strategic alliance with Sun Life, CITIC Ka Wah Bank executive vice-president and head of retail banking, Doreen Chan the bank will use the Canadian partner's life insurance products as a base to serve the bank's customers in Hong Kong.	    CITIC Ka Wah will launch the first product next week under the strategic partnership.	    Sun Life Financial Services of Canada Inc chairman and chief executive officer Donald Stewart said while both parties have no immediate plans to extend the partnership to China, a successful partnership will "lead to more possibilities in the future."

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