Shanghai-listed China Minsheng Banking Corp witnessed a 47 percent profit growth in 2004, sources with the bank said Wednesday.

The Beijing-based bank, in the final stages of preparing for its H-share listing in Hong Kong, released its annual report yesterday afternoon, two months in advance of the original schedule.

The bank realized net profits of 2.04 billion yuan (US$246.3 million) in 2004, compared to 1.39 billion yuan (US$167.8 million) in 2003. Net earnings per share were 0.39 yuan (US$0.047).

Its total assets rose by 23 percent last year to reach 445.4 billion yuan (US$53.8 billion). Its non-performing loan ratio was 1.31 percent.

As for the forthcoming share listing, Minsheng sources said that the bank had been preparing steadily over the past year, talking to investors at home and abroad.

It should work hard to realize the H share issue in 2005, which would enhance its presence in the international market and lay a solid basis for its future business development, the sources said.

Minsheng had planned to kick off the overseas share offering in 2004, but it was delayed due to procedural problems, including the longer-than-expected review of the transfer of State holdings in the bank to private investors prior to the overseas listing, senior bank officials said late last December in a shareholders' general meeting.

Hong Qi, executive vice-president of Minsheng, said at the meeting that the bank would try its best to realize the listing in Hong Kong as early as possible in 2005.

He said it would continue to focus on risk control during business expansion in coming years.

But the pace of expansion might gradually slow down, he said. Retail banking will be a new business focus for the bank.

In the latest 2004 annual report, Minsheng predicted its total assets would rise by another 23 percent in 2005 to reach 550 billion yuan (US$66.4 billion). The targeted after-tax profit for 2005 is 2.55 billion yuan (US$307.9 million), a 25 percent increase on 2004.

In the retail sector, Minsheng's outstanding individual loans stood at 42.98 billion yuan (US$5.19 billion) in 2004, taking up 14.9 percent of its outstanding loans and 2.16 percent of the market share in all domestic financial institutions.

Insiders said Minsheng's impending H-share listing should further enhance its capital strength and better support its expansion in coming years.

Minsheng already has the International Finance Corporation holding a 1.6 percent stake, while Singapore's State-owned company Temasek Holdings controls a 4.55 percent stake.

The bank is hoping to become the first domestic commercial bank to launch an overseas listing. But it has a number of competitors, including Shanghai-based Bank of Communications, which is preparing for a simultaneous listing both on the mainland and in Hong Kong.

Two of the Big Four State banks, Bank of China and China Construction Bank, are also heading towards the capital market for an initial public offering.

(China Daily February 24, 2005)