ICBC posts faster net profit growth in H1

BEIJING - China's largest lender by market value Wednesday reported faster growth in net profits for the first half of the year, citing improved services and strengthened risk control.

The Industrial and Commercial Bank of China (ICBC) said in a statement its net profit attributable to equity holders rose 1.8 percent year on year to 153 billion yuan ($23 billion) in the first six months, as calculated according to international financial reporting standards.

This was higher than the 0.8-percent rise in the same period of last year.

Major business indicators were better than expected, the statement said.

It attributed the good performance to efforts to improve financial services, accelerate innovation and strictly control risks.

Operating income climbed 2.4 percent year on year to 336.7 billion yuan, of which net interest income grew 7.1 percent to 250.9 billion yuan.

The non-performing loan ratio stood at 1.57 percent by the end of June, down from 1.62 percent six months earlier.

The bank's provision coverage ratio, a measure of funds set aside to cover bad loans, rose to 145.8 percent from 136.7 percent at the end of last year.

Overseas institutions reported a 21.4-percent year-on-year growth in net profit, outpacing that of domestic institutions and contributing 7.9 percent to the total net profit of the bank and its subsidiaries, according to the statement.

ICBC shares in Hong Kong rose 1.5 percent on Wednesday while its shares in Shanghai fell 1.8 percent.