(Yicai Global) Oct. 22 -- WeBank, China's first private and online-only lender, made a net profit of CNY1.1 billion (USD160 million) in the first half of the year, while its market value has reached CNY120 billion (USD17.3 billion), according to a report.
Operating income at Tencent-backed WeBank was CNY4.2 billion in the first six months, Jiemian News reported, citing a promotional project document from a Beijing financial institution. Hualian Department Store, one of the lender's shareholders, will also pre-transfer some shares at an 85 percent discount due to the need for capital repatriation, the outlet reported an insider from the institution as saying.
WeBank forecasts operating income of CNY13.4 billion this year, CNY21.3 billion next year and CNY30 billion the year after, according to a five-year plan to 2020. The Shenzhen-based bank aims for net revenue of CNY4.1 billion this year, followed by CNY7.7 billion and CNY12.7 billion in 2019 and 2020, the document states.
Formed in 2015, WeBank specializes in microloans and other consumer-based financial services. The company's net interest margin of about 7 percent on microloans is much higher than the average 4 percent at other private lenders and 2 percent at commercial banks.
The firm was set up with CNY4.2 billion in registered capital from its three major shareholders, Shenzhen-based Tencent Holdings, Baiyeyuan Investment and Li Ye Group, which hold 30 percent, 20 percent and 20 percent stakes, respectively.
Editor: William Clegg