Bank of China (3988) H1 2025 earnings summary

Executive summary

• Operating income for H1 2025 reached RMB329.4 billion, up 3.61% year-on-year, with profit for the period at RMB126.1 billion and net fee income rising 9.17% year-on-year.

• Total assets grew to RMB36.79 trillion, up 4.93% from year-end 2024; total liabilities reached RMB33.66 trillion, up 4.85%.

• Core Tier 1 capital adequacy ratio reached a record 12.57% after a RMB165 billion A-share offering, with total capital adequacy at 18.67%.

• Customer base expanded in both corporate and retail segments, with notable growth in medium-sized enterprise and private banking customers.

• Maintained focus on supporting the real economy, green finance, technology, and inclusive finance, with significant increases in related loan balances.

Financial highlights

• Net interest income for H1 2025 was RMB214.8 billion, down 5.27% year-on-year, while non-interest income rose 25.70% to RMB114.6 billion.

• Net interest margin stood at 1.26%, down 14–18 bps year-on-year; cost-to-income ratio improved to 25.11%.

• ROA was 0.70%, ROE 9.11%, and profit attributable to equity holders was RMB117.6 billion, down 0.85% year-on-year.

• Total assets grew to RMB36.79 trillion; loans and advances to customers rose 6.74% to RMB23.05 trillion; deposits up 5.93%.

• Non-interest income accounted for 34.8% of operating income, up 6.1pp year-on-year.

Outlook and guidance

• Focus on optimizing financial supply, supporting domestic demand, and expanding credit to key sectors.

• Plans to leverage global presence, enhance international competitiveness, and expand RMB clearing network.

• Continued emphasis on risk prevention, digital transformation, and product innovation.

• Expectation of ongoing NIM pressure due to low-interest environment, but measures in place to hedge and optimize asset-liability structure.

• Expects global economic recovery to remain uncertain, but domestic economic fundamentals are stable and resilient.