GUANGDONG Development Bank, a China partner of Citigroup Inc., expects its 2008 net profit to rise 60 percent on strong growth across its businesses, according to bank president Michael Zink.

The bank swung to a record net profit of 2.67 billion yuan (US$381.43 million) last year after two years of losses.

Zink also said yesterday the bank expected to sell 5 billion yuan worth of 10-year subordinated debt by the end of June.

The bond issue will boost the lender’s capital adequacy ratio to above 9 percent from 7.12 percent at the end of last year. The minimum regulatory requirement for the capital adequacy ratio is 8 percent.

“We also hope to lower our nonperforming loan ratio to around 3 percent from 4 percent at the end of last year,” he said.

Zink said the bank would continue to make restructuring its priority in coming years, a commitment it made last year in a five-year strategic development plan. The bank also pledged to improve branch service quality and its information technology in the plan.

Commenting on recent market speculation that Guangdong Development Bank may seek a domestic listing, Zink said the lender was in no rush to do so.

“We’ve had a very extensive discussion with our board on raising funds for future expansion and the conclusion of the board is that the time isn’t mature yet for listing shares,” he said.

“I think after one to two years the market will give us better value when we have completed our reform,” he said.

Zink, a former senior Citigroup banker in South Korea, took his job at Guangdong Development Bank after a Citigroup-led consortium bought control in a US$3.1 billion deal, beating rival bidders including Societe Generale in 2006. Citigroup, with a 20 percent stake, holds de facto management control of Guangdong Development Bank.

Founded in 1988, Guangdong Development Bank has a total of around 500 branches in the country. (SD-Agencies)