SPD Bank reports 42% increase in 2011 profit

Shanghai Pudong Development Bank said Thursday its 2011 preliminary net profit rose 42.02 percent year-on-year to 27.24 billion yuan (4.32 billion U.S. dollars).

Revenues for the Shanghai-based lender jumped 35.38 percent from one year earlier to 67.5 billion yuan. Earnings per share increased to 1.46 yuan, according a statement filed to the Shanghai Stock Exchange (SSE).

The bank's preliminary net profit beat market expectations, as the United Bank of Switzerland previously estimated the lender's profit at 25.39 billion yuan.

Total assets rose to 2.69 trillion yuan at the end of 2011, up 22.77 percent from the end of 2010, while the non-performing loan ratio fell 0.07 percentage points to 0.44 percent, the statement said.

The bank established 86 new outlets in 2011, bringing its total number of outlets to 741, while the number of branches hit 37.

In a separate statement filed Thursday to the SSE, the lender said it has received approval from the China Banking Regulatory Commission and the People's Bank of China to issue up to 30 billion yuan worth of bonds, which will be used for loans to small firms.

To boost the development of small enterprises, China has pledged stronger financial support for them, including allowing banks to issue special bonds for lending to small businesses.

In December, China Minsheng Banking Corp. obtained approval from the country's regulators to issue 50 billion yuan worth of the financial bonds.