China's Shenzhen Development Bank (SDB) on Tuesday forecast its net income would more than double in the first half of 2007 as the booming economy boosted loan growth.

The bank said in a statement to the Shenzhen Stock Exchange that its net profits were forecast to grow by 125 to 145 percent to 1.04 to 1.14 billion yuan from January to June.

The profit increase was driven by rapid loan growth and the expansion of intermediate services, the bank stated.

The bank, in which the U.S. private equity firm Newbridge Capital holds a 16.7-percent stake, said the growth compared with net profits of 464 million yuan in the first half of 2006 in accordance with the old accounting standards.

The income growth would be slightly narrowed to 102 to 119 percent if based on the net income of 518 million yuan adjusted according to the new accounting standards.

The SDB led five other listed domestic banks in profit growth that announced first-half profit forecasts.

China Merchants Bank forecast a first-half profits increase of more than 100 percent, followed by 90 percent for the Industrial Bank, 80 percent for China Citic Bank, 60 percent for China Minsheng Banking Corp. and 50 percent for the Industrial and Commercial Bank of China.

Shares in the SDB gained 9.79 percent to 29.15 yuan on Tuesday after the announcement of a rapid increase in net profits in the first six months of the year.

The bank has 249 branches in 18 major cities nationwide and its total assets reached 287.7 billion yuan by the end of March.

(Xinhua News Agency July 18 2007)