Minsheng Bank's Q3 Profit Soars 81 Percent
Profits at Minsheng Bank, China's largest privately held
bank, has soared 81 percent over the same period one year
ago, mainly because of increased loans made during the
past year. China's economy has grown by 9.1 percent in
the past quarter, largely fueled by hyper growth driven
by consumer purchases.
Net profit reached 416.2 million (US$50.29 million) yuan
during July to September, according to its own unaudited
results. The bank disclosed that it is on target to meet
its 40 percent full-year earnings growth target.
Because Minsheng is not a state-owned bank, it does not
suffer from the bad loans which encumber all of China's
state-owned banks. By the end of September, the bank's
non-performing loans stood at 1.62 billion yuan, or 0.84
percent of total outstanding loans. Total outstanding
loans were 192.23 billion yuan.
Earlier in the week, Minsheng's sale
of a 1.6 percent stake to the International Finance
Corporation was approved by the China Banking Regulatory
Commission. The investment will help Minsheng as it positions
itself for an overseas listing, either in Hong Kong or
New York, in the coming year.
Minsheng Bank is one of five banks listed on China's
stock exchanges. Its yuan-denominated A shares were almost
flat at 8.34 yuan, after rising 3.72 percent on Wednesday.
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