Financial firms report over 50% profit rises
Updated: 2007-07-30 17:02
Interim reports and forecasts issued by 12 listed financial companies in the Shanghai and Shenzhen stock markets showed at least 50 percent year-on-year growth for their first-half profits, China Securities News reported today.
Substantial returns on investments have become the growth engine for financial institutions, as banks, insurers and securities companies experienced great improvements in net profits, according to the report.
Among insurance firms, China Life and Ping An of China both declared an expected growth of over 100 percent in the first half of this year, thanks to increasing investment returns, growing insurance business, and profits from bancasurance.
Securities companies were probably the biggest winners in the first half year, as the Chinese stock market surged. Net profits of Haitong Securities increased 853 percent, or 0.6 yuan per share, to 2.04 billion yuan from a year earlier. CITIC Securities grew more than five times in net profits in the first half. Hong Yuan Securities expected a stunning 2,200 percent net profit growth.
The banking sector also saw steady growth. Shanghai Pudong Development Bank, Shenzhen Development Bank, and CITIC Bank achieved a half-year net profit growth of over 50 percent, 125-145 percent, and over 80 percent respectively. Industrial Bank, China Merchants Bank, Industry and Commercial Bank of China, and China Minsheng Banking Corporation experienced a year-on-year growth of over 90 percent, over 100 percent, over 50 percent, and over 60 percent respectively in net profits.
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