Huaxia Bank Q1 profit probably up 80%

Huaxia Bank Co., the Chinese mid-sized commercial lender part-owned by Deutsche Bank AG, said its profit in Q1 probably increased more than 80% backed by improved margins and higher fee income.

Another possible reason of the profit growth is a lower tax rate, according to the statement filed to the Shanghai Stock Exchange. There is no detail about the exact profit figure yet.

Huaxia Bank Co. has eyed a slower profit growth of 24% this year on a tight monetary policy. The Beijing-based bank targeted a gross profit of RMB 4.74 billion (US$676 million) in 2008, according to earlier sources.

During a reporting period, China's listed companies need to make an announcement if they expect earnings to rise or fall more than 50%.