THE mainland-controlled Ka Wah Bank has increased net profits by 26.1 per cent to $139.2 million for the six months to June 30, up from $110.4 million previously. Earnings per share rose to 14.2 cents, from 11.26 cents. For the second consecutive year the company did not recommend a dividend. Its share of associated companies' profits rose seven per cent to $2.05 million, from $1.92 million in the first six months of 1994. Interest income rose by 66.4 per cent to $930.61 million, from $559.41 million previously. In January, Ka Wah said it would transfer $13.2 million, or 5.6 per cent, of after-tax profits to inner reserves. The results were not in line with expectations. Analysts had predicted the bank's provisions for bad and doubtful debt at the beginning of the year would prove to have been too optimistic.