Shenzhen Development Bank, controlled by buyout firm Newbridge Capital, said first-quarter profit more than doubled as it increased loan margins and boosted revenue with new products.
Net income climbed to 535 million yuan from 233 million yuan a year earlier, the bank said. The figures were calculated using mainland accounting standards.
The mainland raised lending rates three times in the past year while deposit rates rose only twice, making loans more profitable for banks.
'[Shenzhen Development Bank has] carved out a niche in personal loans and is doing very well,' said Wu Yonggang, an analyst at Guotai Junan Securities.
Net interest income surged 44 per cent to 2.14 billion yuan in the quarter, the bank said. Interest income accounted for about 90 per cent of Shenzhen Development Bank's operating income in the period.
Shenzhen Development Bank's retail loans, mainly mortgages, jumped 95 per cent in the first quarter from a year earlier. Total lending increased 19 per cent in the first quarter from a year earlier, the company said. It did not provide a first-quarter figure for deposits.