ang Seng Bank plans to spend 1 billion HK dollars over the next two years on expanding its operations in the Mainland as it sees little growth in the competitive and saturated Hong Kong market, The Standard reported, citing vice chairman and chief executive Raymond Or Ching-fai. The money would be spent mainly on opening new branches and hiring staff. Headquarted in Hong Kong, the bank’s Mainland operations have contributed 5 percent f the total earnings in the first half. Or has set a challenging target to raise the contribution to 10 percent within five years. "We will continue to provide service in areas where wealth is most concentrated, such as Shanghai, Guangzhou and Beijing," quoted Or as saying. Or said the bank will continue to rationalize its property portfolio, valued at about 3.1 billion HK dollars, in order to ensure better return to shareholders. "Cash gained on the disposal of assets would definitely spur a higher yield for shareholders because rental yield from our properties is a mere 2.5 percent, whereas if we invest in treasury bills it will safely give us a minimum of 5 percent return," Or said. On the two most competitive markets of mortgage and corporate loans, where Or could not forecast a "spectacular growth," he said the bank would not take the risk of lowering lending rates. "But we will surely diversify our loan portfolio to increase net interest margin," he added.