In 1999,Xiamen International Bank and its subsidiaries in Hong Kong and Macau were still adversely affected by the Asian financial turmoil,In spite of keen market competition and other unfavorable external factors,our bank made steady progress in every aspect of our business through prudent management,adjustment and optimization of the asset structure,enhancement of internal control,and risk aversion.Desposits and lendings at year end recorded HKD 6.587 billion and HKD 5.653 billion, increasing slightly by 0.8% and 2.7% respectively.Total assets as at 31st December 1999 reached HKD 9.079 billion,up by 2.0% compared with last year.As a result of decrease of operating income and ensuring sufficient bad debt provisions, the consolidated profit after taxation fell by 65.2% compared with last year.
   In the year 2000,with the acceleration of China's accession into WTO,the revival of the Asian economy as well as the integration of global economy and finance,our bank will take every appropriate chance to provide excellent banking services to our customers through active business development and prudent management.
  On behalf of the Fifth Board of Directors,I would like to take this opportunity to express my deepest appreciation for the unwavering support and assistance from the regulatory authorities,fellow financial institutions,shareholders,friends,and of course our dedicated staff. I hope all our staff will make joint and enthusiastic efforts to achieve better business performance.

Li Li Hui
Chairman
12th May,2000