ICBC profit up 7 per cent as bad loans held in check

Profit at Industrial and Commercial Bank of China rose 7 per cent in the first half from the same period last year, keeping bad loan growth at bay and generally meeting analyst expectations.

The world's largest bank by assets yesterday posted 148.1 billion yuan (HK$186.8 billion) in net profit for the six months to June, compared with 138.3 billion yuan a year ago, according to interim results filed with the Hong Kong stock exchange.

However, along with the other major mainland banks that have reported interim earnings this year, ICBC's year-on-year profit growth slowed considerably from the 12 per cent it posted a year ago.

Quarter-on-quarter growth edged up by just 0.79 per cent. The bank attributed quarterly growth - where some rivals have experienced a slowdown - to an increase in net interest margin boosted by "optimised credit structure and increased yield on bonds investment".

Net interest margin, a gauge on loan profitability, hit 2.62 per cent - five basis points higher than the same period a year ago.

A more than 8 per cent year-on-year increase in net fee and commission income also helped drive growth.