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Shenzhen bank sees net profits up 700%

By Yu Hongyan (chinadaily.com.cn)
Updated: 2010-01-27 13:37
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Shenzhen Development Bank estimates its net profits in 2009 may surge 700 percent year-on-year to 5 billion yuan ($732.40 million), or 1.6 yuan per share, it forecasts in a filing to the Shenzhen Stock Exchange.

The bank attributes the profit jump to the drop of provision coverage compared with the amount it prepared in 2008.

It expected a net interest income of 13 billion yuan in 2009, up about 3 percent from 2008. Its operating income in 2009 may rise 4 percent year-on-year to 15.1 billion yuan.

The bank said its net interest margin in 2009 may fall 0.55 percentage point to 2.47 percent. Its return on net assets that year may rise 22 percentage points to 26 percent.

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Its total assets went up about 24 percent year-on-year to 58.8 billion yuan in 2009.

It drew 45.5 billion yuan in deposits in 2009, up about 26 percent year-on-year. During the same period, it lent out 36 billion yuan, marking an increase of about 27 percent year-on-year. But its non-performing loan ratio remained at 0.68 percent, the same from 2008.

The bank's capital adequacy came to about 8.9 percent in 2009, with core capital adequacy standing at about 5.5 percent.