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CMB to buy stake in Taizhou Bank for RMB 272 million
 

(November 13, 2007) China Merchants Bank (“CMB”) announced that it had acquired a 10% stake in Taizhou City Commercial Bank (“Taizhou Bank”) for RMB 272.1 million, which stepped up its expansion in the domestic market.

Upon completion of the transaction, the existing shareholders of Taizhou Bank will be entitled to a bonus issue which is subject to a 10% cap of undistributed profit of Taizhou Bank from January 1, 2006 to the completion date of the transaction. The bonus issue will help the existing shareholders to maintain 10% shareholdings in Taizhou Bank.

Taizhou Bank was established in March 2002. The registered capital of it was RMB 300 million. At the end of 2006, the balance of its total deposits and gross loans and advances amounted to RMB 13.017 billion and RMB 9.2 billion respectively, with non-performing loan ratio staying at 0.93%. It posted a gross profit of RMB 341 million and a net profit of RMB 231 million in 2006. Earnings per share were RMB 0.77.

Mr. Ma Weihua, President of CMB, paid a visit to Taizhou Bank while on his way to attend the opening ceremony of the Taizhou branch of CMB. He noted that Taizhou Bank had a profitable small and medium-sized enterprises banking business, which was tailor-made for customers. The transaction would help both banks to explore the opportunities of further cooperation in the innovation of financial operations.