UPDATE 1-Shenzhen Bank '08 net falls, but good start to '09

* 2008 net down 77 percent at 614 mln yuan ($90 mln)

* Net profit up yr/yr in first 2 months of 2009

* Aims to boost capital adequacy ratio to 10 pct (Adds analyst quote, background)

By Samuel Shen

SHANGHAI, March 20 (Reuters) - Shenzhen Development Bank (SDB) 000001.SZ, controlled by U.S. private equity firm TPG Capital [TPG.UL], reported a 77 percent decline in 2008 net profit but said its profit had risen in the first two months of this year from year-ago levels.

The company also said it would continue to take measures to bolster its capital, including the issuance of subordinated and hybrid debt, to boost its capital adequacy ratio to 10 percent versus 8.58 percent at the end of last year.

The bank's net profit in 2008 fell to 614 million yuan ($90 million) from 2.65 billion yuan a year earlier, hurt by loan provisions and write-offs as the economy sags.

Revenue rose 34 percent last year to 14.51 billion yuan from 10.81 billion yuan.

The result was in line with an estimate issued in January, when the bank said it would make 5.6 billion yuan in fresh bad-loan provisions during the fourth quarter following stricter guidance from China's regulators.