BEIJING - The Bank of China, China's third largest bank, announced Thursday that the US Federal Reserve had approved it to set up a branch in Chicago.

A statement on the bank's website said that, after the establishment of the branch, its business will expand to central and western regions of the United States.

The bank already has branches in New York and Los Angeles.

The Chicago branch will mainly target Chinese enterprises aiming to explore overseas markets as well as credible local enterprises and financial institutions, according to the statement.

The bank's annual business report showed it achieved 130.3 billion yuan ($20.7 billion) of profit after tax in 2011, up 18.81 percent year-on-year.