Shanghai-based Pudong Development Bank has reported that unaudited earnings rose by 30% in the first half of 2006 compared to the year ago period, with net profit totaling RMB1.59 billion.
The lender, which is partly owned by Citigroup, said that earnings per share rose by 32% to RMB0.41 from RMB0.31 in the same period last year. Revenue increased to RMB12.7 billion from RMB10.3 billion.
The People’s Bank of China, the country’s central bank, raised loan interest rates in April without raising deposit rates. The Pudong Bank said earlier in the year that it expects earnings to grow 25% this year and loans to expand 18%.
Citigroup owns a 4.6% stake in the bank, which it bought in 2003. The US-based financial services group plans to expand its stake to the maximum allowed 19.9%.