Singapore's Keppel TatLee Bank has reported a jump in net profit in 1999 on the back of strong loan growth and improving spreads.

Its net profit rose 390 per cent to 259.70 million Singapore dollars (€155.39 million) from 53.01 million dollars in 1998, the bank said in a statement. AIB Bank has an option to buy a 25 per cent stake in Keppel for 1.5 billion dollars.

The bank's profit exceeded the 1996 record of 161 million dollars. Its net interest income, or turnover, grew by 76.5 per cent to 464.22 million dollars due to higher interest earnings from a bigger asset base and better interest spreads with margins boosted by lower funding costs.

Mr Benedict Kwek Keppel, TatLee Bank managing director, said he expected better results this year, given the improvement in domestic and regional economies hit by the mid-1997 financial crisis. "With the crisis over now there is a fair chance we can see further earnings growth," he said. He saw further reductions in non-performing loans this year as regional economies improved and businesses recovered.