SPDB earns more profit in H1 on diversified business

SPDB reports a net profit of 28.1 billion yuan in H1, up 5.2 percent year-on-year. The net non-interest income now accounts for 37.8 percent of its 83.3 billion yuan revenue.

Shanghai Pudong Development Bank (SPDB) reported its net profit rose 5.2 percent in the first half of this year, with the net non-interest income accounting for more in its earnings thanks to a better business structure.

The bank's net profit reached 28.1 billion yuan (US$4.24  billion), and the net non-interest income weighted more than one third in the overall income of 83.3 billion yuan.

Asset management, bank card and trust business are the three main contributors to the outstanding performance of net non-interest income, which totaled 31.5 billion yuan and rose 16.6 percent year on year, according to SPDB's interim report released last night.

“The bank has maintained an upward momentum for its non-interest income business during the past three years”, Chen Haining, managing director of the department of assets and liability of SPDB bank said. 

The performance was based on the bank’s diversification strategy and the adjustment of its business structure, Chen added.

However, the bank was still under pressure for its weakening asset quality. The outstanding bad loans added 11.2 billion yuan to 63.3 billion yuan, and the non-performing loans ratio climbed by 0.2 percentage points to 2.09 percent, compared with the sector’s average level of 1.74 percent.

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