Bank of Nanjing Net Profit Grows 6%

The Nanjing-based city bank reported a 6 percent hike in last year's net profit; Analysts attributed the mild profit growth to low interest margins and risky assets

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(Caixin Online) Bank of Nanjing, a Nanjing-based municipal commercial bank, reported a 6.02 percent increase in net profit from 2008, slightly lower compared to listed peers.

The mid-sized lender's net profit was 1.54 billion yuan, up 88 million yuan from 2008, according to the annual report filed to the Shanghai Stock Exchange.

Analysts blamed the relatively modest increase on low interest margins and risky assets, which required a deduction of profits.

The lender's non-performing loans increased to 8.15 trillion yuan, up by 1.55 trillion yuan from the beginning of 2009. The rise in bad loans has forced the bank to allocate some profit for provisional support.

By the end of 2009, total assets reached 149.6 billion yuan, up 62.73 percent from a year earlier, according to the annual report.

Earlier this month, Bank of China, Industrial and Commercial Bank of China and China Construction Bank reported 27.2 percent, 16 percent and 15 percent, respectively, in year-on-year net profit increase.