BANK of Nanjing posted a 53-percent profit growth last year, helped by rising lending, cost control and a tax decrease.
Net income of the city commercial bank climbed to 909.5 million yuan (US$130 million), or 0.62 yuan a share, from 594.6 million yuan, or 0.49 yuan a share, a year earlier, the bank said yesterday.
The bank's lending, mainly to small companies, rose 20 percent to 30.6 billion yuan last year. Its net interest income grew 44.7 percent to 1.96 billion yuan. The interest rate spread expanded 40 basis points to 2.98 percent.
Its non-interest income grew 12.1 percent to 66 million yuan due to the lackluster bond markets.
As it has a big proportion of treasury bills, the bank enjoys an effective tax rate of 14.5 percent, 7.5 percentage points lower, as its T-bill assets enjoy free interest tax.
Its control on staff costs, which rose only four percent last year, also helped it to post a better annual results.
The bank's bad loan ratio dropped to 1.8 percent at the end of last year from 2.5 percent a year ago. The debt coverage ratio grew to 147 percent from 107 percent as the bank put aside more money against possible impairment amid a tight monetary policy which may lead to worsening assets.
The Nanjing-based bank raised 6.93 billion yuan in an initial public offering in Shanghai in July.
The bank ended at 14.47 yuan yesterday in Shanghai, down 1.3 percent. The Shanghai Composite Index lost three percent to 3,472.71.