China Everbright Bank

Strong loan growth lifts Everbright Bank profit

PUBLISHED : Wednesday, 14 February, 2007, 12:00am
UPDATED : Wednesday, 14 February, 2007, 12:00am

China Everbright Bank, the mainland's eighth-largest lender, said profit jumped 21.65 per cent last year, thanks to strong loan growth and a higher margin from new products.

Loans climbed 16 per cent to 352.4 billion yuan while deposits increased 14.7 per cent to 519.8 billion yuan, Everbright Bank said.

Mainland lenders are reporting higher profits for last year as they earned more interest on strong loan demand amid robust economic growth.

Everbright Bank did not provide the exact figures for last year's profits.

According to previous reported figures, its earnings for the first nine months of last year amounted to 2.18 billion yuan.

The bank said assets reached 595.1 billion yuan at the end of December last year, up 16.4 per cent from a year earlier.

Everbright Bank, which is still awaiting a planned 20 billion yuan capital injection from Central Huijin Investment, is stepping up efforts to increase its non-interest income businesses such as wealth management and credit cards.

As one of the leading enterprises in the domestic wealth management market, the mid-sized lender sold 54.9 billion yuan worth of such products last year, representing 112 per cent growth, and issued 757,400 new credit cards.

Everbright Bank, in which Hong Kong-listed financial services group China Everbright owns a 21.39 per cent stake, helped 31 enterprises sell short-term bonds last year, making it the mainland's largest underwriter by volume.

The bank is managing pension funds for 120 companies and has more than two billion yuan of assets under management since it was authorised to act as a custodian and account manager in August last year.

Everbright Bank said it was also the first mainland lender to launch a fixed-rate housing loan early last year and had lent out one billion yuan worth of fixed-rate mortgage loans.