Shenzhen Development Bank, whose management is controlled by Newbridge Capital, yesterday announced a 19-fold increase in second-quarter earnings.
However, rising revenue, improving earnings and falling non-performing loan ratio were marred by a continued insufficient level of capital.
The Shenzhen-based national bank, the weakest of six domestically listed lenders, booked net profit of 254 million yuan in the second quarter against 13 million yuan in the same period last year.
Strong credit growth and declining provision expenses due to a cleaner loan portfolio offset rising operating expenses to upgrade internal control and management systems.
The second-quarter earnings increase would be 77.8 per cent if last year's figures were adjusted to reflect official changes to bring the valuation of financial instruments more in line with international conventions.
For the first half, earnings rose 176 per cent to 463.6 million yuan, or 24 fen per share, 49 per cent more than last year's full-year net profit. Net operating income rose 18 per cent to 4.77 billion yuan.
