SHANGHAI: The Industrial and Commercial Bank of China, the country's biggest lender, said on Thursday that its net profit surged 26 percent last year.
The bank's net profit reached 208.4 billion yuan ($33 billion) in 2011, up from 166.0 billion yuan in 2010, according to a statement to the Hong Kong stock exchange.
It beat an average forecast for the bank's net profit of 204.69 billion yuan, according to analysts polled by Dow Jones Newswires.
"The economic and financial situation at home and abroad was severe and complicated in 2011," the bank said. "Facing a variety of challenges, the bank successfully maintained healthy and steady growth."
ICBC said China's rapid economic growth -- which was 9.2 percent last year -- as well as growth in the bank's interest-generating assets boosted profits in 2011.
The bank's net fee and commission income jumped 39 percent last year, according to the annual report.
Net interest income -- the revenue from the difference between interest received and paid -- rose 19 percent to 362.76 billion yuan.
But ICBC warned Europe's sovereign debt crisis and stricter capital requirements for Chinese banks could have an impact on earnings this year.
"The continuous deterioration of the debt crisis in Europe and the European economic downturn will slow down the global economic recovery," it said, adding China's foreign trade could be hurt.
ICBC shares ended down 0.70 percent in Shanghai trading and fell 1.60 percent in Hong Kong on Thursday. The results were announced after the markets closed.
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