Bank of China (3988) Q1 2025 earnings summary

Executive summary

• Operating income rose 2.41% year-over-year to RMB164.911 billion for Q1 2025, while profit attributable to equity holders fell 2.90% to RMB54.364 billion.

• Net interest income declined 4.42% year-over-year, but non-interest income surged 18.33%, now comprising 34.68% of total operating income.

• Total assets increased 2.64% from year-end 2024 to RMB35,987.147 billion; loans and advances to customers grew 4.70%.

• Non-performing loan ratio remained stable at 1.25%; allowance coverage for NPLs decreased to 197.97%.

Financial highlights

• Profit for the period was RMB58.644 billion, down 2.22% year-over-year.

• Net cash outflow from operating activities was RMB40.463 billion, compared to an inflow of RMB3.24 billion in Q1 2024, mainly due to increased cash outflow from loans and advances.

• Operating expenses increased 9.79% year-over-year to RMB59.608 billion; cost-to-income ratio was 26.17%.

• Impairment losses on assets decreased 7.69% year-over-year to RMB32.246 billion.

Outlook and guidance

• A plan to offer A-shares to specified investors, with proceeds up to RMB165 billion, was approved to strengthen common equity tier 1 capital, pending regulatory approval.