Bank of Communications, China's fifth largest lender, announced it opened its first overseas subsidiary in London Tuesday.

It was a significant step for the bank to improve cross-border business and provide global wealth management services and financial services, said the bank's chairman Hu Huaibang.

The London subsidiary will deal with deposits, lending, trade financing and bond investment, the bank said in a statement.

A branch in San Francisco is expected to open thereafter, and a representative office in Sydney will become a branch, according to the statement.

Currently, the bank has 11 overseas institutions in New York, Tokyo, Singapore and Hong Kong.