Agricultural Development Bank of China (ADBC) reported surging profits and fewer non-performing loans in 2006, according to statistics the bank released on Wednesday.

Bad loans in the ADBC portfolio dropped to 7.65 percent at the end of last year, from 10.3 percent at the beginning of 2006.

Meanwhile, the bank reported annual profits of 8.77 billion yuan (about US$1.1 billion), a year on year increase of 62 percent.

The ADBC raised 200 billion yuan from financial bonds issuance last year, and its saving deposits amounted to 191.5 billion yuan, up 52 percent on 2005.

China set up the ADBC and two other policy banks - China Development Bank and The Export-Import Bank of China - in 1994 as key channels of policy financing, a move that enabled the other Big Four state banks to devote themselves solely to commercial business.

The ADBC's mission is to raise funds for agricultural businesses specified by the central government and to serve as an agent for the state treasury to allocate special funds to agricultural development.

(Xinhua News Agency January 11, 2007)