Merchants Bank net more than doubles

HONG KONG: Shares in China Merchants Bank, the mainland's fifth largest lender, shot up more than 5 percent yesterday after it posted better-than-expected net profit growth of 124 percent for 2007.

China Merchants shares gained HK$1.15 yesterday after it said its net profit more than doubled to over 15 billion yuan last year. Basic earnings per share jumped 96 percent to 1.04 yuan, which translates to a dividend payout of 0.28 yuan apiece.

The bullish stock market was behind the bank's stellar performance. Net fee and commission income catapulted 156 percent to 6.4 billion yuan in 2007. Equities-related agency services alone brought in 774 million yuan - an almost threefold increase over 2006.