BOC Hong Kong (2388) investor relations material

Executive summary

• Net operating income before impairment allowances rose 6.3% year-over-year for the first nine months of 2025, but fell 13.9% sequentially in Q3 2025.

• Net interest margin narrowed by 8 basis points year-over-year to 1.54%, but widened by 1 basis point quarter-on-quarter in Q3.

• Net fee and commission income surged 22.1% year-over-year, driven by strong investment and insurance business performance.

• Deposits from customers and advances to customers increased by 10.2% and 3.1% respectively from end-2024.

• Impaired loan ratio remained low at 0.96%, below market average.

Financial highlights

• Net operating income before impairment: HK$57,179 million for nine months (+6.3% YoY), HK$17,157 million for Q3 (-13.9% QoQ).

• Net interest income (including swap contracts): HK$43,300 million for nine months (-0.7% YoY).

• Net fee and commission income: HK$9,051 million for nine months (+22.1% YoY).

• Operating profit before impairment: HK$44,570 million for nine months (+7.5% YoY), HK$12,858 million for Q3 (-18.3% QoQ).

• Cost to income ratio: 22.05%.

Outlook and guidance

• Global economic uncertainty persists due to divergent monetary policies and US trade policy adjustments.

• Hong Kong's economy continues to grow, with stable property prices and vibrant stock market.