Huaxia Bank, a Beijing-based lender partly owned by Deutsche Bank, said first-half profit surged 16 per cent as it earned more interests on higher demand for loans amid the country's booming economy.
Net profit rose to 745 million yuan in the six months to June 30, up from 640 million yuan a year ago, Huaxia said in a preliminary earnings statement to the Shanghai Stock Exchange yesterday.
Revenue rose 28 per cent to 8.2 billion yuan from 6.4 billion yuan. The unaudited figures are based on Chinese accounting standards and the bank is scheduled to report its detailed first-half earnings on August 31.
China's economic growth accelerated to 10.9 per cent in the first half, fuelling consumer and corporate demand for loans. Mainland banks extended 2.18 trillion yuan of new loans in the first six months, almost 90 per cent of the central bank's full-year target of 2.5 trillion yuan.
'Chinese joint-stock banks no doubt benefit from the strong economic growth and strong credit demand, with their earnings growth rates outpacing those of the Big Four state-owned banks,' said Zhang Jing, a banking analyst at Shanghai Securities.
'Over 80 per cent of Chinese banks' revenue comes from lending.'