ICBC reports 14.5% hike in earnings

Performance in 2012 makes it the world’s most profitable bank.

Industrial and Commercial Bank of China reported earnings of US$38.4 billion in 2012, 14.5% higher than the US$33.2 billion in 2011. Earnings per share for the year hit US$10.67, up from US$9.40 in 2011.

The bank said its total assets came to US$2.78 trillion while outstanding loans amounted to US$2.37 trillion in 2012.

Despite this, President Yang Kaisheng said Chinese lenders would face great challenges and tests on their asset quality this year due to moves by China's central bank to widen the range of interest rates last year.

"We must be on high alert on the trend and prepare in advance," he said.

As a result, some analysts expect average profit growth among major banks this year to drop to 10%.

They noted that China’s economic growth still faces great uncertainties and can't expect a strong recovery this year. Adding to the uncertainty is China’s bid to push interest rate liberalization that could significantly reduce banks' interest margins.