Norway's DNB to scale back Shanghai bank operation

Credit: REUTERS/INTS KALNINS

Norwegian bank DNB is closing its Shanghai branch, replacing it with a smaller representative office after years of slow business in China, the bank told Reuters on Wednesday.

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OSLO, Dec 4 (Reuters) - Norwegian bank DNB DNB.OL is closing its Shanghai branch, replacing it with a smaller representative office after years of slow business in China, the bank told Reuters on Wednesday.

"Over the past few years DNB's business in the branch has been very limited, and we expect it will continue to be so in the future," said Vidar Andersen, who heads the international part of the bank's corporate banking unit.

While the current branch has 15 employees, the new office will have a staff of three or four, he added.

"On the (Chinese) mainland our strategic objective is limited to Nordic clients, and our product range is not competitive in the domestic market," Andersen said.

DNB's Shanghai office has been a full-service branch since 2006, after it set up a representative office in 1982, according to the bank's website. DNB expects to hand back its Chinese bank licence in 2021.

"Going back to this set-up will allow us to maintain an active presence in China, including providing a liaison for our clients and establishing strategic partnerships when necessary," Andersen said.

(Reporting by Victoria Klesty; Editing by Mark Potter and Emelia Sithole-Matarise)

((victoria.klesty@thomsonreuters.com; +47 2331 6592; Reuters Messaging: victoria.klesty.thomsonreuters.com@reuters.net))

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