Bank of Beijing Co, China's biggest city bank, said profit rose 57 percent in 2007 as the nation's fastest economic growth in 13 years boosted demand for corporate loans and mortgages.
Net income climbed to 3.3 billion yuan, from 2.1 billion yuan, in 2006, the Beijing-based company said in a statement.
City banks, which were barred from expanding outside their hometowns until 2006, raised funds last year to compete with larger, better-capitalized rivals that have no geographic limits.
As a result China's three publicly traded city banks averaged 53 percent profit growth last year.
"Loan expansion is the sole engine powering Bank of Beijing and other city lenders' growth," said Li Qing, a Shanghai-based analyst at CSC Securities Ltd. They missed out on big income gains from selling mutual fund products amid China's stock boom last year because their network is too small, he said.
"That will change gradually as city banks speed up expansion outside their home bases," he added.
Bank of Beijing also said it plans to pay 127.5 million yuan for 19.99 percent of Langfang City Commercial Bank in the northern Chinese province of Hebei.
Bank of Beijing is the third of China's 113 city-commercial banks to go public, selling 15 billion yuan of shares in an initial public offering in Shanghai in September. It’s lending grew 21 percent to 157 billion yuan last year and deposits increased 11 percent to 260 billion yuan. The bank aims to boost profit by 40 percent this year and loans will rise 15 percent, it said in the statement.
It currently operates 123 branches in the capital and one branch in neighboring Tianjin, with 8.2 million accounts held by individuals.
ING Groep NV, the biggest Dutch financial services company, owns 16 percent of the Chinese bank.
In response to the news the bank's shares in Shanghai climbed 3.31 percent yesterday.
（英语点津 Helen 编辑）
About the broadcaster:
Brendan joined The China Daily in 2007 as a language polisher in the Language Tips Department, where he writes a regular column for Chinese English Language learners, reads audio news for listeners and anchors the weekly video news in addition to assisting with on location stories. Elsewhere he writes Op’Ed pieces with a China focus that feature in the Daily’s Website opinion section.
He received his B.A. and Post Grad Dip from Curtin University in 1997 and his Masters in Community Development and Management from Charles Darwin University in 2003. He has taught in Japan, England, Australia and most recently China. His articles have featured in the Bangkok Post, The Taipei Times, The Asia News Network and in-flight magazines.
