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Fubon Bank (Hong Kong) Limited

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Title: Fubon Bank (Hong Kong) Limited  
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Subject: International Bank of Asia, Fubon Financial Holding Co., Electronic Payment Services, List of companies listed on the Hong Kong Stock Exchange, Sun Hung Kai Bank
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Fubon Bank (Hong Kong) Limited

Fubon Bank (Hong Kong) Limited (Chinese: 富邦銀行(香港)有限公司) is a licensed bank incorporated in Hong Kong. It is a subsidiary of Fubon Financial Holding Co., Ltd. of Taiwan. Prior to adopting the Fubon brand on April 6, 2005, the organization was known as International Bank of Asia, more commonly known as IBA (Chinese: 港基銀行, formerly branded as Chinese: 港基國際銀行).

History


Fubon Bank (Hong Kong) Limited was established as Sun Hung Kai Finance Company, the financing arm of Sun Hung Kai Securities. The name Sun Hung Kai Bank was adopted in 1982, when it received a multi-branch banking license. The original Sun Hung Kai Bank shareholders included Banque Paribas, Merrill Lynch, and the family of Fung King-Hey (founder of Sun Hung Kai Securities).

In 1985, Ahmet D. Arsan, Asia Head of Arab Banking Corporation (ABC), arranged for ABC to acquire 75% of Sun Hung Kai Bank, which, at the time, was suffering from sub-optimal results and was ripe for a take-over. Arsan was a well-known and highly influential Turkish-American banker who ABC had recruited in 1982 to head ABC Asia Pacific, after his success, years earlier, in establishing the Asia Pacific arm of First Chicago (now JPMorgan Asia). Immediately following the 1985 acquisition of Sun Hung Kai Bank by ABC, Arsan made sweeping changes in the bank, ranging from the executive management team and most of the bank's staff, to the bank's entire set of operating procedures, on which all employees were trained.

In 1986, Arsan changed the institution's name and re-branded the organization as International Bank of Asia (IBA); (港基國際銀行). Ahmet D. Arsan was the founding Chief Executive Officer and Managing Director of International Bank of Asia (IBA) from 1985 to 1989, after which Arsan left IBA and established a private Hong Kong based trading firm.

In 1990, following Arsan's departure, ABC acquired the remaining 25% of IBA shares, making IBA a wholly owned subsidiary of ABC, until October 1993 when China Everbright Holdings became a 20% stake holder. In November 1990, IBA was listed on the Hong Kong Stock Exchange.

In February 2004 Fubon Financial Holding Co., Ltd., a member of Taiwanese financial institution Fubon Group, in an acquisition of IBA shares from both ABC and China Everbright Group, acquired a 75% stake in IBA. The M&A advisor was Citigroup Global Markets.

At the 2005 Fubon Group annual general meeting, the Fubon board approved a movement for IBA to adopt the Fubon name. On April 6, 2005, IBA was renamed Fubon Bank (Hong Kong) Limited.

Fubon Bank (Hong Kong) Limited operates 25 retail outlets in Hong Kong including 22 branches and 3 Securities Services Centers, and provides a wide range of financial services encompassing consumer and wholesale banking, wealth management, financial markets, hire purchase, securities brokerage and investment services. Fubon Bank is listed on The Stock Exchange of Hong Kong (stock code: 636) and holds an A-2 short-term, BBB+ long-term rating from S&P. The rating reflects Fubon Bank's strong capitalization, good liquidity and sound asset quality.

Timeline

1970 - Established as Sun Hung Kai Finance Company.

1982 - Sun Hung Kai Finance was renamed Sun Hung Kai Bank after receiving a multi-branch license.

1985 - Arab Banking Corporation ("ABC") acquired 75% of the Bank, and the Fung family retained 25%.

1986 - The Bank was renamed International Bank of Asia (IBA).

1990 - ABC purchased the remaining 25% and IBA became a wholly owned subsidiary of ABC until 1993.

October 1993 - China Everbright Holdings acquired a 20% shareholding of IBA.

November 1993 - IBA listed on the Stock Exchange of Hong Kong.

November 1996 - IBA became the first bank in Hong Kong to receive a full rating from Standard and Poor's (S&P). Awarded A-3, BBB ratings by S&P.

Fubon Financial Holding Co., Ltd’s Major Shareholding Acquisition of IBA

December 2002 - IBA’s controlling shareholder Arab Banking Corporation announced a possible disposal of its stake in IBA.

September 2003 - Fubon Financial Holding Co., Ltd. proposed to acquire the whole of the issued share capital of IBA.

February 2004 - Fubon Financial Holding Co., Ltd. acquired a 55% stake in IBA from Arab Banking Corporation.

March 2004 - Fubon Financial Holding Co., Ltd made a general offer to acquire the remaining stakes in IBA, namely the 20% shareholding of the China Everbright Group and 25% from public shareholders.

April 2004 - Fubon Financial Holding Co., Ltd. acquired China Everbright’s 20% and became a 75% shareholder of IBA.

April 6, 2005 - The Bank changed its name to Fubon Bank (Hong Kong) Limited.

September 6, 2005 - Standard and Poor’s upgraded the Bank’s credit ratings from long term BBB and short term A3 to BBB+ and A2 respectively.

See also

External links

  • Fubon Bank (Hong Kong) Official website
  • Taipei Fubon Bank Official website
  • Fubon Financial Group
  • CNN article (1985)
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