The expansion of China and the Gulf will increase the revenues of the Trade Bank of Iraq, according to the president

ABU DHABI (Reuters) – The Bank of Commerce of Iraq (TBI) is expanding its operations to China and the Gulf, seeking to increase its revenue from retail banking and international operations by 30%. here 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 reached $ 550 million in 2018, with trade finance accounting for 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 the order of $ 30 billion, helps finance about 80% of foreign trade finance activities in Iraq.

"With our expansion into China, Abu Dhabi and Saudi Arabia, retail and international business will account for 30% of our total revenues by the end of the next three years," said Faisal al-Hariri. Haimus to Reuters.

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 that will be fully operational in September will focus on trade finance, he said.

TBI has abandoned the acquisition talks with a Gulf bank, which has decided not to sell, said Al-Haimus.

TBI was in talks to buy a Gulf bank with branches in the United Arab Emirates and Qatar as part of a strategy to boost revenues out of its domestic market

The Iraqi bank had also previously suspended its project to buy a commercial bank in Turkey because of 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," he said, refusing to name them.

TBI plays an important role in rebuilding Iraq and developing infrastructure, which will help strengthen its balance sheet, whose size has reached $ 30 billion, he said.

The lender also plans to launch a fund in the fourth quarter of 2019 focused on lending to Iraqi banks for international trade, approvals being expected by October.