CDB 2011 profit surges on rising interests

China Development Bank (CDB) said Wednesday its net profit rose 22.84 percent year-on-year in 2011 to reach 45.61 billion yuan (7.25 billion U.S. dollars) on the back of surging interest income.

The bank's net interest income climbed 32.85 percent to 116.46 billion yuan, accounting for 99.17 percent of the bank's total revenue, the bank said in an annual report posted on its website.

"In 2011, the bank aligned its business plans with the government's macroeconomic policies and development strategies and capitalized on its strength in development financing and medium- to long-term lending," according to the report.

The CDB improved cost control for its lending and maintained good asset quality, achieving an average return on assets of 0.8 percent and an average return on equity of 10.76 percent.

"The bank maintained excellent asset quality through a sound credit structure and a streamlined lending process," the report said.

Its non-performing loans ratio dropped 0.28 percentage point to 0.4 percent in 2011, according to the report.

The CDB is one of three Chinese "policy" banks, or banks that have been designated by the government to support the country's medium- and long-term development strategies and policies.