ICBC profit climbs 10.2 per cent on fees, high net interest margins

Industrial and Commercial Bank of China (ICBC), named last year as the world's most profitable bank, said its net profit rose 10.2 per cent to 263 billion yuan (HK$331.5 billion) in 2013, thanks to high net interest margins and its fee-based businesses.

The bank's net interest margin, a gauge of lending profitability, stood at 2.57 per cent last year, 9 basis points lower than 2012, but still higher than its peer Bank of China, whose net interest margin was 2.24 per cent.

Last year, ICBC generated 443 billion yuan in net interest income, an increase of 6.1 per cent over 2012.

The bank's net fee and commission income reached 122 billion yuan, up 15.3 per cent.

Beijing's urbanisation plan would provide major opportunities for the bank this year despite a slowdown in the country's economy.

"[The] large demand for financial services stimulated by accelerated new urbanisation will bring great opportunities for our business expansion," said ICBC in its earnings statement.

ICBC plans to step up overseas operations at a time when the yuan accelerates its inter- nationalisation as a global currency.