China Merchants Bank (CMB), the mainland's sixth-largest lender by market value, yesterday reported a 40 per cent profit growth last year, benefiting from a high net interest margin.
But the lender is under pressure to rev up its share placement plan since it is required to replenish capital to meet the stringent regulatory requirements likely to come into effect on July 1.
CMB's net profits last year hit 36.13 billion yuan (HK$44.37), compared with 25.77 billion yuan a year earlier. Revenue climbed 34.7 per cent to 96.2 billion yuan.
The annual results met the forecast by analysts and beat the 29 per cent profit rise reported yesterday by its bigger rival Bank of Communications (Bocom).
'Not all is good news for China Merchants Bank because the annual report showed it has to boost capital as soon as possible,' said Orient Securities analyst Jin Lin. 'A tougher capital requirement is imminent and the bank has to speed up its fund-raising.'
CMB's core capital ratio stood at 8.22 per cent at the end of 2011.