Sun Hung Kai Bank
Encyclopedia
Sun Hung Kai Bank originally established as Sun Hung Kai Finance Company (the financing arm of Sun Hung Kai Securities), was acquired in 1985 by Arab Banking Corporation (ABC) and in 1986 Sun Hung Kai Bank was renamed International Bank of Asia
(IBA). In 2004, IBA was acquired by Taiwan-based Fubon Group, which renamed the bank Fubon Bank (Hong Kong) Limited (Traditional Chinese: 富邦銀行 (香港)) in 2005. Currently, the bank operates under the name Fubon Bank (Hong Kong) Limited.
(IBA). In 2004, IBA was acquired by Taiwan-based Fubon Group, which renamed the bank Fubon Bank (Hong Kong) Limited (Traditional Chinese: 富邦銀行 (香港)) in 2005. Currently, the bank operates under the name Fubon Bank (Hong Kong) Limited.
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 an 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 for IBA to adopt the Fubon name. On April 6, 2005, IBA was re-named 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.
International Bank of Asia
International Bank of Asia Limited or IBA was acquired by Taiwan-based Fubon Group in 2004 and now operates under the name "Fubon Bank Limited"...
(IBA). In 2004, IBA was acquired by Taiwan-based Fubon Group, which renamed the bank Fubon Bank (Hong Kong) Limited (Traditional Chinese: 富邦銀行 (香港)) in 2005. Currently, the bank operates under the name Fubon Bank (Hong Kong) Limited.
History
Sun Hung Kai Bank (Traditional Chinese: 新鴻基銀行), originally established as Sun Hung Kai Finance Company (the financing arm of Sun Hung Kai Securities), was acquired in 1985 by Arab Banking Corporation (ABC) and in 1986 Sun Hung Kai Bank was renamed International Bank of AsiaInternational Bank of Asia
International Bank of Asia Limited or IBA was acquired by Taiwan-based Fubon Group in 2004 and now operates under the name "Fubon Bank Limited"...
(IBA). In 2004, IBA was acquired by Taiwan-based Fubon Group, which renamed the bank Fubon Bank (Hong Kong) Limited (Traditional Chinese: 富邦銀行 (香港)) in 2005. Currently, the bank operates under the name Fubon Bank (Hong Kong) Limited.
The original Sun Hung Kai Bank shareholders included Banque Paribas, Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
, 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 an 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
Sun Hung Kai Bank
Sun Hung Kai Bank , originally established as Sun Hung Kai Finance Company , was acquired in 1985 by Arab Banking Corporation and in 1986 Sun Hung Kai Bank was renamed International Bank of Asia...
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
Hong Kong Stock Exchange
The Hong Kong Stock Exchange is a stock exchange located in Hong Kong. It is Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and the Shanghai Stock Exchange and fifth largest in the world...
.
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 for IBA to adopt the Fubon name. On April 6, 2005, IBA was re-named 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: Founded by Mr. Fung King HeyFung King HeyFung King Hey , was born in Guangzhou, mainland China. He is one of the founders of Sun Hung Kai & Co. and was reputed as “King of securities world” and “Godfather of the stock market”...
, one of the founders of Sun Hung Kai & Co. LimitedSun Hung Kai & Co. LimitedSun Hung Kai & Company Limited is one of the leading financial institutions in Hong Kong with a long history dating back to 1969 when Sun Hung Kai & Co...
. - 1979: Listed on the Hong Kong Stock ExchangeHong Kong Stock ExchangeThe Hong Kong Stock Exchange is a stock exchange located in Hong Kong. It is Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and the Shanghai Stock Exchange and fifth largest in the world...
. - 1978: BNP ParibasBNP ParibasBNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. In October 2010 BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over $3.1 trillion. It was formed through the merger...
became the shareholderShareholderA shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
of the bank. - 1980: Merrill LynchMerrill LynchMerrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
became the shareholder of the bank. - 1983: Bank runBank runA bank run occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent...
happened in the bank after the burst of Hong Kong real estate bubbleReal estate bubbleA real estate bubble or property bubble is a type of economic bubble that occurs periodically in local or global real estate markets...
and the fear of Hong Kong handover from Britain to China. - 1985: Arab Banking Corporation paid HK$359.72 million to acquire the bank from Fung.
- 1986: Renamed to International Bank of AsiaInternational Bank of AsiaInternational Bank of Asia Limited or IBA was acquired by Taiwan-based Fubon Group in 2004 and now operates under the name "Fubon Bank Limited"...
(Traditional Chinese: 港基國際銀行, IBA). - 2004: Fubon Financial Holding of TaiwanTaiwanTaiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
acquired IBA. - 2005: International Bank of Asia was renamed to Fubon Bank (Hong Kong) Limited.