Iraq Trade Bank looks to China and strengthens its presence in the United Arab Emirates

The Iranian State Trading Bank (TBI) is expanding its activities to China and the Persian Gulf, seeking to increase its revenue from retail banking and international operations by 25% by 2022, announced Sunday its president.

The bank plans to open a representative office in China next year and is in the process of turning its license in Abu Dhabi into an badet management company from an office of representation.

TBI's revenues totaled 550 million dollars (2 billion dirhams) in 2018, with trade financing representing the lion's share. Its retail and international activities represent 25% of its turnover. The bank, owned by the Iraqi government and with badets of about $ 30 billion, contributes to the financing of about 80% of foreign trade finance activities in Iraq.

"With our expansion in China, Abu Dhabi and Saudi Arabia, retail and international operations will account for 30% of our total revenues by the end of the next three years," said President Faisal. Al Haimus.

Trade between Iraq and China is important in both the public and private sectors with Chinese oil companies operating in Iraq and the large private sector a lot of China, he said.

TBI entered Saudi Arabia this year, opening its first branch in Riyadh. The branch, which will become fully operational in September, will focus on trade finance, said Al Haimus. TBI has abandoned the acquisition talks with an unnamed Gulf bank with branches in the United Arab Emirates and Qatar, the latter having decided not to sell, he said.

Last year, the Iraqi bank suspended its project to buy a commercial bank in Turkey due to the fall of the Turkish lira

But TBI is still interested in acquiring a bank in Turkey, Iraq's largest trading partner. "We are still looking at some banks, it is only at an early stage," said Al Haimus, refusing to name them.

TBI plays a major role in rebuilding Iraq and developing its infrastructure, which will help strengthen lenders' balance sheets, he said. TBI also plans to launch a fund in the fourth quarter of 2019, which will focus on lending to Iraqi banks for international trade, with approvals expected by October.