Bank of China, whose 9.7 billion dollar Hong Kong IPO attracted huge interest, said Friday it expects its corporate loan business to record growth of 10-12 percent yearly over the next three years.

Chairman Xiao Gang said the corporate loan growth of China’s second-largest lender, had been in single digits in the past three years.

“Through risk management and enhancing our customer base, we expect our corporate loan (segment) to grow 10-12 percent year-on-year in next three years,” Xiao said told reporters after the annual general meeting of the bank’s Hong Kong unit.

He added that the bank’s retail loan growth is expected to grow about 18-20 percent yearly over the same period.

Xiao said China’s recent economic austerity measures for the property market are not going to affect loan growth for mainland property developers.

“Our loans offered to property developers in China account for only 6.8 percent of our total loans, which should be much lower than the average 14.8 percent of other banks in the country,” Xiao said, adding that its property loans will have potential to expand further.

Commenting on the overwhelming investor response to Bank of China’s IPO, the world’s biggest in six years, Xiao said the successful offering reflects the fact investors are confident in China’s economic development, as well as in the bank’s brand name.

The bank will begin trading next Thursday.

Xiao said, in response to a question on Bank of China’s working relationship with its BOC Hong Kong unit, both parties will complement each other.

Bank of China currently owns 65 percent of BOC Hong Kong (Holdings).

“The two banks have different customer and market base…. I don’t think the parent’s listing will affect BOC Hong Kong’s business in China … they will create a synergy effect through cooperation,” said Xiao, who is also chairman of BOC Hong Kong.

BOC Hong Kong vice chairman He Guangbei added that the bank is discussing with parent Bank of China to develop a QDII (qualified domestic institutional investor) business.

Xiao also added that parent Bank of China’s plan for its own A-share offering on the mainland should be done as soon as possible, but the timing of the listing will depend on market conditions and government regulations.

The A-share offer is expected to comprise not more than 10 billion shares and will raise not more than 20 billion yuan (2.4 billion US) for the bank.

Meanwhile, Xiao announced that its risk management director, Lonnie Dounn, has resigned after 18 months in the job, with effect from September.

He did not discuss the reason for Dounn’s departure and said the bank will recruit a new risk management director from the international job market.

Sources told the South China Morning Post that the resignation of the 53-year-old non-Mandarin speaking New Yorker was due to his “inability to adapt” in a Chinese bank.

Before joining BOC, Dounn spent more than 30 years with HSBC, most recently as its Asia-Pacific chief credit officer between 1998 and 2004.