China International Capital Corporation (3908), the nation's top investment bank, will continue expanding its headcount this year even as its foreign rivals are slashing theirs, chief executive Bi Mingjian said yesterday. However, sustained volatility in the investment banking industry might cloud CICC's performance this year, he said. CICC reported a net profit of 1.95 billion yuan (HK$2.33 billion) last year, a 74.6 percent spike year-on-year on the back of robust growth of its wealth management and investment management businesses. Total revenue soared 54.4 percent to 9.51 billion yuan. Basic earnings per share jumped 67.2 percent to 1.12 yuan. Net assets doubled to 16.44 billion yuan as of end-December following its listing in Hong Kong. China's gradual opening of its economy boosted cross-border merger and acquisition deals last year, Bi said. "We believe such cooperation between China and other countries can get more active," he said. Last year, CICC ranked as the top global M&A financial adviser by transaction value involving Chinese enterprises. It grossed US$113.44 billion (HK$884.83 billion), enabling its financial advisory fees to expand by 1.58 times. Wealth management income doubled to 1.7 billion yuan, with total assets in customer accounts up by 85 percent. Brokerage commission income spiked 94.1 percent to 2.73 billion yuan amid a surge of A shares trading volumes. Credit Suisse last week said it would cut 2,000 more jobs. Meanwhile UBS is reportedly planning to ax 300 investment banking jobs.
China International Capital Corporation (CICC) has said that it will continue its expansion strategy, just as others are cutting back. The company is expanding into the United States and Europe, with plans to open a new office in New York City this year.