China's ICBC sees limited impact from LPR reform

FILE PHOTO: The logo of Industrial and Commercial Bank of China (ICBC) is pictured at the entrance to its branch in Beijing, China April 1, 2019. REUTERS/Florence Lo

BEIJING (Reuters) - China’s reform of its loan prime rate (LPR) will have only a limited impact on the net interest margin of Industrial and Commercial Bank of China (ICBC), the bank’s president, Gu Shu, said on Thursday.

About 48% of the bank’s new loans in the first half of this year referenced the LPR, he added.

ICBC’s overseas business has grown steadily despite rising global trade tension and tougher regulations, said Hu Hao, the bank’s vice president, adding that it sees growing business potential in southeast Asia and African nations.

Reporting by Leng Cheng, Vincent Lee and Beijing Monitoring Desk; Editing by Clarence Fernandez