China Merchants Bank, the nation's fifth-largest lender by market value, suffered a 61 per cent year-on-year plunge in profit in the fourth quarter - based on mainland accounting standards - because of higher bad debt provisions and expenses related to the acquisition of Wing Lung Bank late last year.
Fourth-quarter profit dropped to 2.08 billion yuan (HK$2.36 billion) from a year earlier, based on mainland accounting.
On a quarter-to-quarter basis, net income declined about 64 per cent. Figures were obtained by subtracting profits in the first nine months from the full-year earnings.
'The bank's earnings will be under pressure this year, as credit demand weakens and the capital market remains turbulent,' the bank said in a statement to the Shanghai stock exchange yesterday.
But the challenging times have also brought opportunity, especially from Beijing's efforts to stimulate the economy.
'We will be focused on developing the wealth management business and strengthening our edge in retail banking,' the bank said.