Corporate loans help China Minsheng to a 45pc rise in net profit

China Minsheng Banking Corp booked a 45.25 per cent jump in net profit to 1.76 billion yuan (HK$2.09 billion) for last year from 2009, helped by robust growth in corporate loans.

The bank's operating income went up 30.04 per cent to 54.7 billion yuan while assets increased 27.86 per cent to 1.8 trillion yuan.

Loans to private companies, including small and medium-sized enterprises, comprised 45.1 per cent of the total corporate loans compared with 37.3 per cent in 2009.

The value of general corporate loans increased 11.2 per cent from 930.4 billion yuan to 1.2 trillion yuan.

Loans to small and micro enterprises represented 60.8 per cent of retail loans, which rose 75.3 per cent to 261.5 billion yuan. The loans, made through a loan product called Shang Dai Tong, represented only 30 per cent of retail loans in 2009.

Mao Xiaofeng, vice-president of the bank, said it extended loans to small and micro enterprises mainly from the service sector, including retail, high-end grain wine and electronic appliance companies.