Minsheng Bank, China's first private lender, beat expectations on Thursday with a 39 percent jump in fourth-quarter earnings, defying credit curbs aimed at cooling the world's seventh-largest economy.

Still, analysts have said a government clampdown on investment and lending in overheated sectors from steel to autos, intended to bring growth to a more stable footing, could erode banks' bottom lines in 2005.

Minsheng Banking Corp., which sources familiar with the deal say is set to raise $1 billion in a Hong Kong stock sale targeted for April, posted an unaudited net profit of 470 million yuan ($56.78 million) in the October-December period.

That compares with 337.25 million yuan a year ago, based on Reuters' calculations from preliminary results unveiled on Thursday.

For all of 2004, earnings hit 2.04 billion yuan versus 1.39 billion yuan in 2003, Minsheng said in unaudited results filed to the exchange.

That exceeded a consensus of 1.975 billion yuan according to a poll of four analysts by Reuters Estimates. Income growth is forecast to slow to 20 percent in 2005 to 2.454 billion yuan.

But Minsheng outperformed rival Pudong Development Bank , part-owned by U.S. financial titan Citigroup Inc. , which posted in January a provisional net profit rise of 23 percent for 2004.

The other three listed lenders -- Merchants Bank , Huaxia Bank and Shenzhen Development Bank -- have yet to unveil annual data.

(CRI.com February 17, 2005)