Bank of Communications (3328) H2 2024 earnings summary

Executive summary

• Net profit attributable to shareholders rose 0.93% year-over-year to RMB 93.59 billion, with total assets up 5.98% to RMB 14.90 trillion and loans to customers up 7.52% to RMB 8.56 trillion.

• Net operating income increased 0.87% to RMB 260.27 billion, while net interest income grew 3.48% to RMB 169.83 billion, offset by a 14.16% drop in net fee and commission income.

• Asset quality improved, with the non-performing loan (NPL) ratio down to 1.31% and provision coverage ratio up to 201.94%.

• The bank maintained strong capital adequacy, with a ratio of 16.02% and a liquidity coverage ratio of 140.69% in Q4.

• No new ordinary or preference shares issued; no redemption or conversion of preference shares.

Financial highlights

• Net profit attributable to shareholders: RMB 93.59 billion (+0.93% YoY).

• Net operating income: RMB 260.27 billion (+0.87% YoY).

• Net interest income: RMB 169.83 billion (+3.48% YoY); net interest margin: 1.27% (down 1bp YoY).

• Net fee and commission income: RMB 36.91 billion (-14.16% YoY), mainly due to lower bank card and agency service revenues.

• Credit impairment losses: RMB 52.57 billion (-7.63% YoY).

• Total assets: RMB 14.90 trillion (+5.98% YoY); loans to customers: RMB 8.56 trillion (+7.52% YoY); deposits: RMB 8.80 trillion (+2.91% YoY).

• Earnings per share: RMB 1.16 (+0.01 YoY).

Outlook and guidance

• The bank expects a more complex and uncertain external environment in 2025 but remains optimistic about China's economic prospects.

• Focus areas include expanding credit supply to science and technology, microenterprises, green, and pension sectors, deepening digital transformation, and enhancing risk management.