Industrial and Commercial Bank of China saw net earnings rise 27 per cent in the six months to 30 June, from RMB66.4 billion in the 2009 first half to RMB85 billion ($12.5 billion).

The increase was attributed to a rapid growth in credit in 2009 and high interest rates on loans. Net interest income was up 24 per cent to RMB143.31 billion, while outstanding loans went up 10 per cent from December 2009. Net fee and commission income from products and services also rose by a third to RMB36.9 billion.

The bank has also announced that it is issuing RMB25 billion worth of convertible bonds on 31 August. Proceeds from the issue will be used to replenish working capital and boost its capital adequacy ratio.