The Industrial and Commercial Bank of China (ICBC), the largest bank by total assets and one of China's four major banks, beat a lower growth prediction by announcing a net profit of 263 billion yuan (US$42.3 billion) in 2013.

The reported net profit was 10.2 percent higher from what ICBC posted in 2012. The profit growth rate was also higher than the 9.2 percent rate forecast by investment bank China International Capital Corp (CICC).  The CICC predicted that ICBC's profit growth this year will weaken to 5.6 percent.

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Despite economic slowdown and stiff competition from online financial service providers and the country's shadow banking industry, ICBC said it has managed to keep its profit growth rate in double digits.

The other three major Chinese banks - the Bank of China, China Construction Bank and Agricultural Bank of China - have not released their profit report yet but are expected to do so next week.

According to ICBC, it will allocate 92 billion yuan (US$14.8 billion), or around 35 percent, of its net profit as cash dividends to its shareholders.

The bank also made double-digit progress in its global business after its overseas assets soared 28.5 percent last year to reach 209 billion yuan (US$33.7 billion)

The lender's net interest margin, which is a measure of loan profitability, dropped from 2.66 percent in 2012 to 2.57 percent in 2013, a further testament that the country's accelerating financial reforms like interest rate liberalization hit ICBC's profitability.

To ensure profitability last year, the bank cut lending in sectors seen as risky, including property, government and manufacturing. According to ICBC's financial report, outstanding loans to local government financing vehicles dropped by 94.3 billion yuan.

It also trimmed by 8.6 billion yuan its lending to property developers and cut by 19.9 billion yuan the loan it provided to industries with overcapacity issues.