Bank of China (3988) H2 2024 earnings summary

Executive summary

• Total assets reached RMB35.06 trillion, up 8.11% year-on-year, and liabilities rose to RMB32.11 trillion, both reflecting robust balance sheet growth.

• Operating income rose 1.38% to RMB632.8 billion, and net profit increased 2.58% to RMB252.7 billion year-on-year.

• Asset quality remained strong, with NPL ratio at 1.25% and provision coverage at 200.6%.

• Shareholder returns were enhanced by interim and proposed final dividends totaling RMB2.424 per 10 shares, maintaining a 30% payout ratio.

• Enhanced support for real economy, technology, green, inclusive, and digital finance, with notable growth in green and inclusive loans.

Financial highlights

• Net interest margin held at 1.40%, with net interest income at RMB448.93 billion and non-interest income up 16.65% to RMB183.84 billion.

• Cost-to-income ratio remained low at 28.77%, reflecting efficient operations.

• ROA was 0.75% and ROE was 9.5%.

• Overseas pre-tax profit surged 40.75% year-on-year, with overseas assets at $1.15 trillion, contributing over 26% to group profit.

• Capital adequacy ratio improved to 18.76%; common equity tier 1 ratio at 12.20%.

Outlook and guidance

• 2025 is the final year of the 14th Five-Year Plan; focus will be on steady operation, risk control, and high-quality development.

• The group aims to maintain stable domestic RMB loan growth, with corporate loans dominating and increased focus on consumer loans.

• Plans to invest over RMB1 trillion in loans to boost consumption and create RMB100 billion in property income, benefiting over 100 million consumers.

• Continued emphasis on digital transformation, AI adoption, and supporting new quality productive forces.

• Emphasis on early risk identification and comprehensive risk management to prevent systemic risks.