(Recasts, adds performance milestone, share price performance)
HONG KONG/SHANGHAI Aug 28 Industrial and
Commercial Bank of China , the country's
largest bank, reported its lowest second-quarter profit growth
in five years and an increase in bad loans, affected by a
ICBC's earnings were similar to its smaller peers, which
also reported this week lower profit growth and higher bad loans
during the second quarter.
ICBC made a second-quarter net profit of 74.8 billion yuan,
according to Reuters calculations based on its earnings, a
year-on-year growth of 7 percent, slower than the 12.5 percent
year-on-year growth rate in the same 2013 period.
It was also the slowest year-on-year second quarter increase
since the 2.9 percent profit growth reported in 2009.
ICBC's shares in the last 30 days have fallen 1 percent,
making it the second worst performer among Chinese lenders after
China Citic Bank Corp, according to Thomson Reuters
Starmine data. The lender is down almost 2 percent in the year
to date in Hong Kong, against a 6 percent rise in the benchmark
Hang Seng index.
ICBC's non-performing loan ratio increased slightly to 0.99
percent at end-June from 0.97 percent at end-March.
Most Chinese state-banks are trying to decrease the
proportion of non-performing loans, which have spiked as
economic growth slows. China's bad loan levels rose to 1.08
percent at the end of June, according to official data, the
highest ratio since 2011.
ICBC's total capital adequacy rose to 13.67 percent,
compared to 13.22 percent at end-March.
ICBC said in April it agreed to buy a 75.5 percent stake in
Turkey's Tekstil Bankasi for $316 million, as the
Chinese lender seeks to benefit from the rising trade between
the two countries.
($1 = 6.1423 Chinese yuan)
(Reporting By Engen Tham in SHANGHAI and Lawrence White in HONG
KONG, additional reporting by Shilpa Murthy in BANGALORE;
Editing by Miral Fahmy)