China Minsheng Banking Corp, the national's first privately held lender, and city lender Bank of Nanjing said they expected profits for last year to surge more than 50 per cent, on growing demand for loans and financial services. In separate statements filed with the Shanghai stock exchange, Minsheng Bank said net income last year rose more than 60 per cent while Bank of Nanjing, which is part-owned by BNP Paribas, said profit grew about 50 per cent. Based on its 3.8 billion yuan net income in 2006, profit at Minsheng Bank last year would be at least 6.08 billion yuan while that of Bank of Nanjing would be about 891 million yuan given that its 2006 profit was 594 million yuan. Shares in Minsheng Bank rose 0.42 per cent yesterday to 13.55 yuan, while Bank of Nanjing gained 0.76 per cent to 17.07 yuan after the earnings estimates were released. Yuen Lin, an analyst at Bank of China International, said the two lenders were growing and still had plenty of room to expand their fee-based businesses. 'Compared with China Merchants Bank and Bank of Communications, the two lenders are relatively weak in their intermediary businesses such as the sale of wealth management products,' Ms Yuen said. 'Whether their earnings will grow at a faster pace depends on the performance of their stock portfolios.' Mainland lenders are reaping higher profits as companies increase borrowings for expansion and individuals with growing disposable income seek financial products such as funds for better returns than bank deposits. On Tuesday, Bank of Communications said its net income for last year grew more than 60 per cent on an increase in credit and treasury income and significant gains in fee-based services. China Merchants Bank, the nation's sixth-largest lender, estimated its net profit last year surged 120 per cent while another medium-sized lender China Citic Bank Corp said it expected earnings for last year to jump 100 per cent. Meanwhile, Moody's Investors Service yesterday said there was no rating impact on Bank of China related to the subprime exposure. 'We expect Bank of China's full year mark-to-market write-down will amount to about US$2 billion, US$300 million of which would appear to have already been provisioned for in the third quarter,' said Laurie Cang, a vice-president and senior analyst at Moody's However, there could be further losses in BOC's subprime-related investments, should market conditions deteriorate materially this year, Moody's said.