ICBC overtakes HSBC as world’s most profitable bank

by Gill Montia

Story link: ICBC overtakes HSBC as world’s most profitable bank

Industrial and Commercial Bank of China (ICBC) has overtaken HSBC as the world’s most profitable bank.

The group posted first-half net profit of $9.4 billion (£5.01 billion), up 57% on a year earlier.

HSBC slipped from its leading position with net profit of $7.72 billion for the six months to the end of June, down nearly 29% (from $10.9 billion) in the same period of 2007.

ICBC is China’s biggest lender and in terms of market capitalisation comes only behind Citigroup of the US, at $235 billion.

Its latest accolade reflects the mild exposure to the credit crisis of China’s financial sector, compared with companies in Europe and the US.

However, ICBC has said that it holds $2.7 billion worth of bonds from Fannie Mae and Freddie Mac, the struggling US mortgage institutions.

The bank’s chairman, Jiang Jianqing, has promised that the second half of the year will be filled with hard work and that he expects ICBC to secure the title of “world’s most profitable bank” for the full year.