Apr. 10, 2012 (China Knowledge) - Bank of Lanzhou Inc, based in Lanzhou
, capital of Gansu
Province, plans to submit an application to the China Securities Regulatory Commission
by the end of this year to launch its initial public offering.
The lender is expected to become the first city commercial bank in Northwest China to tap on the capital market, said a person familiar with the matter.
No more details have yet been disclosed.
Established in 1997, Bank of Lanzhou has a total of 2.33 million shares, 22.99% or 535,990 shares of which are owned by the Chinese government. Last year it actively lent out to local small and medium size enterprises with over RMB 17.3 billion or 44.4 % of its total outstanding loan portfolio. This is higher its province’s average banks’ lending to local small and medium size companies of 18%.
The lender had RMB 58.62 billion in total assets at the end of 2010, reflecting an increase of 33.13% compared with the beginning of the same year. Outstanding deposits surged 38.57% to RMB 50.23 billion, while outstanding loans increased 23.9% to RMB 30.65 billion as of Dec. 31, 2010.
Gross profit totaled RMB 430 million in 2010, reflecting a year-on-year jump of 106.73%. The bank's capital adequacy ratio was 12.01% at the end of 2010, according to the lender's website.