(Yicai) Aug. 31 -- Industrial and Commercial Bank of China, the country’s largest lender, said profit rose 1.2 percent in the first half from a year earlier as net interest income declined.

Net profit was CNY173.7 billion (USD23.8 billion) in the six months ended June 30, the Beijing-based firm announced yesterday. Revenue fell 3.4 percent to CNY428.9 billion, dragged down by a drop in net interest income.

ICBC’s net interest margin, a key measure of profitability, fell 31 basis points to 1.72 percent, as net interest income fell 4 percent to CNY337 billion. The average yield on customer loans fell 20 bps to 3.95 percent, while the average interest rate for deposits rose 20 bps to 1.9 percent.

As of June 30, ICBC’s loan balance was CNY25.29 trillion (USD3.5 trillion), up 9 percent year on year.

Lending to high-end manufacturers and key projects in fields such as new information technology, new energy, power equipment, auto manufacturing, and chemical refining jumped by CNY630.4 billion to CNY3.6 trillion (USD493.9 billion).

In the second half of the year, ICBC will continue strengthening credit support for major national projects, including those in the manufacturing, scientific and technological innovation, as well as the green, inclusive, and private equipment fields, said Senior Executive Vice President Zhang Wenwu.

ICBC also hiked its investment in consumer credit. In the first half, the bank extended CNY160 billion in personal consumption loans and CNY510 billion in personal housing loans, up 34 percent and 10 percent, respectively. CNY100 billion went on autos, home improvement, and credit card instalments, a 65 percent jump.

The balance of ICBC’s non-performing loans reached CNY343.6 billion in the six months, with a bad loan ratio of 1.36 percent, down 2 bps from a year ago.

Among public loans, the delinquency rates of most industries fell, while that of the real estate sector rose to 6.68 percent from 6.14 percent. Among personal loans, the non-performing loan rates of personal housing, consumer, and credit card overdraft loans increased.

Editor: Futura Costaglione