First-Half Profits at China Minsheng Bank Rise After 80% Tax Cut
Zhang Xia
DATE:  Aug 29 2017
/ SOURCE:  Yicai
First-Half Profits at China Minsheng Bank Rise After 80% Tax Cut First-Half Profits at China Minsheng Bank Rise After 80% Tax Cut

(Yicai Global) Aug. 29 -- China Minsheng Banking Corp.'s [SHA:600016; HKG:1988] net profit climbed slowly in the first half of this year as earnings growth stabilizes and it lopped a hefty sum off its tax burden.

The company saw revenue of CNY70.5 billion (USD10.5 billion) in the first six months, down 9.5 percent from a year ago while net profits climbed 3.2 percent to CNY28.1 billion (USD4.19 billion), its interim results, released yesterday, show.

Despite revenue declining, net profit increased thanks to lower costs and the replacement of business tax with a value-added tax, the report said. Taxes and surcharges were CNY753 million in the first half, down nearly 80 percent from a year earlier.

China's business tax was replaced with a value-added tax to avoid repeated taxation and cut the corporate tax burden.

China Minsheng is undergoing changes in various business segments while further developing its core corporate banking sector. It has had early positive results in retail banking, financial markets, internet finance, risk control and its overseas expansion.

The firm announced yesterday that its board has decided to dismiss Lin Xiaoxuan as chief information officer as he undergoes investigation for suspected 'serious violations of discipline,' a term often used in corruption cases. The company is still operating as normal, it added.

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Keywords:   CMBC,Financial Performance