Shenzhen Development Bank (SDB), according to an announcement on Wednesday, expects to show a sharp increase in net profits of over 700 percent in 2009 from the previous year,.

The 2009 annual performance report shows that revenue reached 15.1 billion yuan ($ 2.21 billion), four percent more than the same period last year. Similarly, net profit totaled about 5 billion yuan ($0.73 billion) , and profit per share hit 1.6 yuan ($.23), both up over 700 percent.

An increase as high as 7 fold dwarfs other banks. Pudong Development Bank earned 13.20 billion yuan ($0.19 billion) , increasing 5.43 percent.Industrial Bank is expected to earn 13.28 billion yuan ($1.94 billion), up 16.62 percent.

Some experts have the opinion that the upsurge of China's bank industry in the third quarter of 2009 will continue and this coincides with the expectation of the securities traders.　　

Total savings increased about 26 percent to 455 billion yuan ($ 66.64 billion) , and the loans increases about 27 percent to 360 billion yuan ($ 52.73 billion) compared with 2008.

Bad loans reachesd about 2.4 billion yuan ($ 0.35 billion), accounting for 0.68 percent by the end of 2009, while that before Sep. 2008 totals 11.08 billion yuan ($ 1.62 billion). Special-mentioned loans diminished from 1.3 percent to 0.4 percent. Both are at the best levels among listed banks, owing to efficient restructure and recovery measures.

In addition, provision coverage ratio also plays an important role in the upsurge of SDB's profits.

By the end of 2009, the provisioning coverage ratio is about 160 percent, with 8.9 percent capital adequacy rate and 5.5 percent core capital adequacy rate.

"In 2009, the bank maintained very good credit quality, thus the provision coverage ratio declined significantly to the normal level, which primarily contributed to the significant net profit of more than 700 per cent year on year, " said a source from SDB.