China Merchants Bank 2007 profit more than doubled

China Merchants Bank Co<600036><3968>, the nation's largest issuer of dual-currency credit cards, posted net profit more than doubled to hit RMB 15.24 billion (US$2.15 billion) in 2007, compared with RMB 6.49 billion a year earlier, according to its filing with the Hong Kong Stock Exchange on Tuesday.

The sixth-largest commercial bank in China by assets ascribed the robust growth to surging interest income and increased fees from selling mutual funds. Its net interest income climbed 57.6% year-on-year to RMB 33.9 billion last year. Agency fees from fund distribution and securities totaled RMB2.44 billion, a 466% increase over 2006. Fee and commission income expanded 156% to RMB 6.4 billion, the highest ratio among the nation's publicly traded lenders.

Its non-performing loan ratio dropped to 1.54% by the end of last year. And it issued 10.34 million credit cards in 2007, bringing the total number to 20.68 million.

The Shenzhen-based bank said last November it was seeking the approval from China Banking Regulatory Commission to acquire a 10% stake in Taizhou City Commercial Bank Corp for RMB 272.1 million.

Currently, the bank operates more than 400 affiliations in the mainland, Hong Kong as well as the U.S.