First-half net profits of China's Shenzhen Development Bank (SDB) surged by 142 percent over the same period last year to 1.12 billion yuan (147 million U.S. dollars), according to its interim report released on Thursday.

The bank, in which the U.S. private equity firm Newbridge Capital holds a 16.7 percent stake, recorded net profits of 464 million yuan in the first half of 2006, which was calculated by the old accounting standards.

The profit increase was driven by stable and rapid deposit and loan growth, a shift to retail banking and the expansion of intermediate services, the bank stated.

From January to June, the SDB registered a net turnover of 4.89 billion yuan, up by 42 percent year on year.

The bank's non-performing loan ratio for loans issued after 2005 remained below one percent, according to the statement.

The bank has 249 branches in 18 major cities nationwide and its total assets reached 314.1 billion yuan at the end of June.

SDB's share price fell 4.61 percent to close at 36.25 yuan on the Shenzhen stock exchange on Thursday.

(Xinhua News Agency August 17, 2007)