China Minsheng sees lower rise in net - ResearchInChina
Date:2008-03-05
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CHINA Minsheng Banking Corp (stock code: 600016) )targets a slower growth in profit this year while expecting an almost unchanged lending growth, the lender said yesterday.
The bank projects a 43-percent jump in profit and a 17-percent rise in lending, it said yesterday.
The Beijing-based bank expects its net profit to top nine billion yuan (US$1.27 billion) this year, a jump of 43 percent over a year ago, the bank said in a statement to Shanghai Stock Exchange yesterday.
Its net profit expanded 68.6 percent last year to 6.3 billion yuan.
The bank expects its outstanding lending at 651 billion yuan at the end of this year, up from last year's 555 billion. Its lending rose 18 percent last year.
Analysts from CITIC Securities and China International Capital Corp expect the bank's profit to grow more than 50 percent this year.
However, a close eye should be kept on the bank's asset quality, analysts said.
The bank targets a bad loan ratio less than two percent. The bank's bad loan ratio dipped 0.03 percentage points to 1.22 percent at the end of 2007. But the sour loan value worsened 880 million yuan last year.
Its ratio for provision against bad loans dropped to 113 percent at the end of last year from 156 percent at the end of the third quarter.
The bank said it set its deposits growth target at 18.6 percent to top 796 billion yuan.
The bank issued 1.9 million new credit cards, up 46 percent than a year ago. The bank has issued 3.34 million credit cards so far.
The country's first privately-owned bank also plans to set up offices in Tokyo, London and Singapore within two years, the bank said.
China Minsheng ended at 13.58 yuan in Shanghai yesterday, down 2.37 percent.
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