China Minsheng Banking Corp Ltd's net profit grew 3.18 percent year on year during the first half despite a drop in revenue, according to its interim earnings report yesterday.
The bank earned a net profit of 28.1 billion yuan (.2 billion) in the first half of 2017, although its operating income fell 9.5 percent. It attributed the gain to the bank's cost reduction efforts.
Benefiting from the country's tax reform, China's first private bank's operating expenses declined sharply by 14.6 per cent to 3.13 billion yuan from the same period a year before. The bank's impairment losses on assets dropped 17.5 percentage points to 3.6 billion yuan, which contributed significantly to the bank's cost savings.
The bank's net non-interest income came to 29.4 billion yuan during the first half year, accounting for nearly 42 per cent of the 70.5 billion yuan revenue which, however, fell 9.51 percent annually.
The bank implemented the Phoenix Project, one of several proactive measures, which helped it cut its balance sheet in the first half, with total assets and liabilities falling to 5.76 trillion yuan and 5.39 trillion yuan respectively.