Listed Banks 07 Net Profits Largely Rose

In 2007, net profits of China's 14 listed banks largely rose, mainly thanks to narrowing costs, decreasing non-performing loans, and reduction of income tax, escalating net interest margins, and the supernormal growth in the intermediary business.

Last month, Chinese securities brokerage firm Dongguan Securities Co., Ltd. announced that the 14 listed lenders totally reaped net profits of CNY 280.961 billion for the entire 2007, soaring 57.86% from a year earlier. Net profits of four large-scale lenders, seven joint-stock lenders, and three city commercial lenders surged 51.05%, 100.41%, and 54.61%, respectively.

Meanwhile, most of them saw the return on equity (ROE) considerably increase in 2007. For instance, ROE of China Merchants Bank (SHSE: 600036; SEHK: 3968), Shenzhen Development Bank (SZSE: 000001), and Industrial Bank (SHSE: 601166) all beat 20%.

In 2008, six listed banks are expected to achieve ROE of more than 20%, and the indicator of Shanghai Pudong Development Bank (SHSE: 600000) will likely reach 28.33%. (SinoCast)