Having recently extended its trade services in one of the Philippines most promising business districts, banking giant HSBC now says it wants to extend its presence in the country where it writes significant amounts of letter of credit (L/C) business.

The bank's plans to provide additional locations for trade finance services are conditional on approvals from Bangko Sentral ng Pilipinas (BSP-central bank).

Trade launch

HSBC recently launched in Cebu City a trade services division designed for importers and exporters. Now the bank says it wants to open another branch in the province before the end of the year.

In an interview with local media, HSBC Philippines chief executive officer Warner Manning says "Cebu has a lot of exporters and importers", and he is convinced that the bank will be able to provide them with easier access to trade services.

Service provision

HSBC's import services provide L/Cs import financing. Its export services include documentary collection, L/C advising and export financing.

Manning says HSBC's planned additional branch in Cebu is awaiting central bank approval, but he says that, "based on our initial talks with the BSP, they are quite happy with our plan to add a branch in Cebu."

Expansion rate

HSBC's sole Cebu branch so far is located on Cebu Business Park, while it has 21 branches in the Philippines.

Manning says the bank is expanding in the Philippines at a rate of about five additional branches a year.

Promising province

Cebu is one of the most developed provinces in the country and the main centre of commerce, trade, education and industry in the central and southern parts of the archipelago.

The 225 kilometre main island of Cebu and 167 smaller islands that surrounded it also has a burgeoning tourism industry with five-star hotels, casinos, white sand beaches, world-class golf courses, convention centres and shopping malls.

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