Shenzhen Development Bank (SDB) on Thursday said its 2007 net profit soared 88 percent from a year earlier on greater loan earnings and fee income.

Profit rose to 2.65 billion yuan (376 million U.S. dollars), or 1.27 yuan per share, from post-adjusted 1.41 billion yuan, or 0.68 per share, in 2006, the mid-sized bank said in a statement to the Shenzhen Stock Exchange.

The profit growth was slower than the 126 percent recorded by the Industrial Bank and the 124 percent of the China Merchants Bank. However, it was faster than the pace of rivals including Huaxia Bank, China Minsheng Bank Corp. and the Bank of Communications. The three reported income growth of 44 percent, 69 percent and 65 percent, respectively.

Revenue rose 38 percent to 10.81 billion yuan, the Chinese partner of the U.S. equity firm Newbridge Capital stated.

Total assets climbed 35 percent to 352.5 billion yuan by the end of last year. Outstanding loans added 22 percent to 221.8 billion yuan and outstanding deposits gained 21 percent to 281.3 billion yuan.

Loan growth demand from both businesses and individuals expanded rapidly as the country's gross domestic product grew 11.4 percent last year, the fifth year of double-digit economic growth.

Net interest income rose 37 percent to 9.61 billion yuan, accounting for nearly 89 percent of its revenue.

Apart from increasing loans, the wider interest rate margin also contributed to the earnings growth. Its average rate margin increased by 16 basis points to 3.10 percent from a year ago, according to the annual results.

Fee income surged 51 percent to 521 million yuan on the booming stock market and credit card growth. The SDB had issued 1.88 million valid credit cards by the end of 2007, up 1.91 times from a year earlier.

Meanwhile, the capital-adequacy ratio rose to 5.77 percent from 3.71 at the end of 2006, below the banking regulator's minimum requirement of 8 percent. The non-performing loans ratio dropped to 5.62 percent from 7.98 percent.

(Xinhua News Agency March 21, 2008)