Industrial & Commercial Bank of China (ICBC) was the world's most profitable bank in the first half, reporting a 64.5 billion yuan renminbi (£5.05 billion) net profit in the six months to June 30.

This was a 57 per cent rise on the same period last year, up from 41 billion yuan last year.

The bank beat a $7.7 billion (£4.13 billion) interim net profit at HSBC, previously the world's most profitable bank.

ICBC's figures were in line with forecasts. Analysts had expected a second-quarter profit of at least 32.3 billion yuan.

The Chinese group, which is the world's biggest bank with a market capitalisation of $235 billion, revealed that it had a $1.9 billion book of US mortgage-backed investments. It has set aside $702 million for impairments on these assets.

The bank also said that it held $2.7 billion worth of bonds from Fannie Mae and Freddie Mac, the troubled US mortgage providers.

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