GUANGDONG Development Bank returned to the black last year after a Citigroup-led consortium put the bank on the road to growth.
The bank chalked up a profit of 2.54 billion yuan (US$353 million) in 2007, compared with a loss of 624 million yuan a year ago, the Guangzhou-based lender said. The profit also exceeded its earlier target of 1.6 billion yuan set at the beginning of last year.
"2007 was a difficult year of transition as we launched our ambitious reform agenda," said Michael Zink, who was named as president of the Guangdong bank in 2006. "We have addressed our legacy problems and we've planned for our future."
The bank has mapped out a five-year strategic development plan which has been approved by its board of directors and its shareholders, and this includes capital raising this year as well as product and service innovation.
Its 18-member board approved earlier this month the issue of three billion yuan of subordinated bonds which is expected in the first quarter. The bank is now in the process of seeking approval from regulators and its shareholders.
The bank cut its non-performing loan ratio to 4.02 percent as of December 31 from 5.83 percent a year ago.