Industrial and Commercial Bank of China, the world's largest bank by market value, said Thursday its first-half net profit jumped 29 percent year-on-year thanks to a rise in loans and fee income.

The bank's profit in the first six months of the year rose to 109.48 billion yuan ($17.13 billion), from 84.60 billion yuan during the same period a year ago, it said in a statement to the Hong Kong stock exchange.

The result beat the average forecast of 107.30 billion yuan in a poll of eight analysts by Dow Jones Newswires.

"In the first half of 2011, the domestic and global economic situation has remained very complex, market competition has intensified and financial regulation has tightened," ICBC said in the statement.

The bank recorded a 46 percent increase in fee and commission income during the January-June period. Net interest income, the revenue from the difference between interest received and paid, was up 22 percent to 174.50 billion yuan.

ICBC said it posted a rapid growth in small enterprise loans, trade finance and personal loans. The amount of its renminbi-denominated loans provided by its domestic branches meanwhile rose 6.6 percent.

"Currently, the global economy is still struggling to recover, and the international financial system is getting increasingly fragile."

"However, while clearly seeing a full picture of the challenges confronting us, we should also see new opportunities," it said in its outlook for the rest of the year.

The bank's shares in Hong Kong ended up 1.89 percent at HK$4.85 (62 US cents).

Lending growth of Chinese banks has slowed since China introduced a slew of measures to rein in liquidity to fight inflation, which hit a three-year high 6.5 percent in July.

The central bank raised its benchmark interest rates twice in the first half of the year and the amount of money banks must keep in reserve with the central bank six times.

China has 'essential role' in G20 talks: Sarkozy
Beijing (AFP) Aug 25, 2011 - China has an "essential role" to play in efforts to boost the global economy at the next G20 meeting in November, French President Nicolas Sarkozy told his Chinese counterpart in Beijing on Thursday.

Sarkozy made the comments to President Hu Jintao during a brief stopover in China, the world's second largest economy, on his way to the French territory of New Caledonia.

"As president of the G20, I never imagined not coming to China to talk to my Chinese friends about the major economic issues that are preoccupying the world," the French president told Hu in the Great Hall of the People.

"The G20 summit must... take decisions and participate in the revival of global growth. This is a major issue and China has an essential role to play."

As current president, France will host the next G20 meeting in the coastal resort of Cannes.

The French president is spending just five hours in Beijing, where he will have a working dinner with Hu before delivering a statement to the media.

The Chinese president said the pair would discuss "matters of global importance, including matters of the economy".

"These matters hold great stakes for France and China. This (visit) also reveals the importance that the president (Sarkozy) attaches to Sino-French ties," Hu added.

Journalists were ushered out of the room after the opening comments, but Sarkozy's office said earlier the talks would cover the debt crisis in the Euro zone.

The conflict in Libya, where France has played a major role in support of the rebel opposition, was also expected to be on the agenda.

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