Everbright triples its profit on stock boom

China Everbright, a state-backed financial services group, said first-half profit tripled as the buoyant equity markets in the mainland and Hong Kong boosted earnings.

Net profit climbed to HK$404 million or 25.81 HK cents per share, up 201 per cent from HK$134 million or 8.56 HK cents in the same period last year.

Revenue surged 132 per cent to HK$1.53 billion. No interim dividend was declared.

Earnings were boosted by a turnaround at mainland associates including China Everbright Bank and Everbright Securities.

Associate companies contributed HK$203 million profit during the period compared with a reported loss of HK$5.6 million in the first half of last year.

Net profit from Hong Kong operations surged 62 per cent to HK$386 million, the company said in a statement yesterday.

Everbright Bank, in which the group has a 21.39 per cent stake, reported a 49 per cent jump in pretax profit to HK$1.4 billion based on mainland accounting standards, after achieving total net operating profit of HK$5.7 billion.

As at the end of June, the lender's total assets stood at HK$553.7 billion. Total deposits increased 10.4 per cent to HK$486.7 billion from a year earlier while loans rose 12.9 per cent to HK$333.8 billion.

Non-performing loans were HK$27.3 billion, representing a non-performing loan rate of 8.2 per cent.

A government-led restructuring and bailout of Everbright Bank was still proceeding, the statement said.

China Everbright's 46.6 per cent held securities unit, Everbright Securities, reported first-half profit after tax of HK$437 million on turnover of HK$791 million.

China Everbright shares closed three Hong Kong cents higher at HK$4.71 yesterday before the earnings announcement.