China Merchants Bank estimates 2007 profit up 110%

China Merchants Bank (CMB), the nation's sixth-largest lender, on Tuesday released an estimate of 2007 net profit, which it said soared 110 percent year-on-year to about 14.9 billion yuan (about 2 billion U.S. dollars).

The rise was attributed to capital growth, a wider rate gap between deposits and loans, and rapid growth in non-interest revenues, the Shenzhen-based bank said in a statement filed with the Shanghai Stock Exchange.

Other contributing factors included a decrease in credit costs and the cost-to-income ratio and an expected fall in the corporate income tax rate, CMB said.

The results will be audited by the bank's accountants, CMB said.