GDB restored to financial health
12 September 2008
Guangdong Development Bank (GDB) has met the minimum requirement for financial strength for the first time in 20 years after recording profit growth of over 140% in the first half of the year, state media reported. The bank posted a capital adequacy ratio of 8.1% at the end of June, above the minimum 8% required by China's banking regulator. GDB, which sold a 85.6% stake to a consortium led by Citigroup in 2006 after a protracted battle with rival bidders, has seen marked improvement since the investment. Its non-performing loan ratio fell 0.77% to 3.23% at the end of June.