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Shenzhen Development Bank profit up 319%
(Xinhua)
Updated: 2007-03-22 14:16  Domestic-listed Shenzhen Development Bank (SDB) reported its net profits up 319 percent to reach 1.3 billion yuan (167 million US dollars) last year, and the net earnings per share was 0.67 yuan, sources with the bank said Thursday.
By the end of 2006, the total deposits of the bank reached 232.2 billion yuan, up 15 percent over the end of 2005, while its loans hit 182.2 billion yuan, up 17 percent. The SDB largely attributed its soaring growth to the "improved interest spread, more efficient use of funds and healthy loan growth." In addition, the bank scored a "lower credit provision charge and reduction in the effective tax rate." In 2006, the bank focused its business on offering loans to small- and medium-sized enterprises, the sources said. SDB's non-performing loans was 14.565 billion yuan at the end of 2006, equal to that of the previous year, but the ratio of non-performing loans dropped to 7.98 percent at the end of 2006 from 9.33 percent in 2005. The bank wrote off 2 billion yuan of non-performing loans last year. The Capital Adequacy Ratio (CAR) and Core CAR were both 3.71 percent and 3.68 percent at the end of last year, almost the same to that a year ago. However, the ratio is still less than half the regulatory minimum of eight percent. The SDB will take further measures to raise its CAR, such as improving efficient use of funds and raising new capital, bank sources said. As the first joint-stock company listed on the Shenzhen Stock Exchange, the SDB's assets reached 246 billion yuan as of last September. The bank, which is controlled by the US private-equity firm Newbridge Capital, is the only Chinese bank controlled by foreign shareholders. (For more biz stories, please visit Industries)
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