Bank of Communications (3328) Q3 2024 earnings summary

Executive summary

• Total assets rose 3.80% year-to-date to RMB 14,594.7 billion as of September 30, 2024, with total liabilities up 3.81% to RMB 13,454.96 billion and shareholders' equity up 3.67% to RMB 1,127.91 billion.

• Net operating income for the first nine months of 2024 declined 1.37% year-over-year to RMB 196.41 billion, while net profit attributable to shareholders fell 0.69% to RMB 68.69 billion.

• Annualized return on average assets (ROAA) was 0.65% and return on weighted average net assets was 9.06%, both down from the prior year.

Financial highlights

• Net interest income increased 2.15% year-over-year to RMB 126.80 billion, accounting for 64.56% of net operating income.

• Net interest margin decreased by 2 basis points year-over-year to 1.28%.

• Net fee and commission income dropped 13.96% year-over-year to RMB 29.35 billion.

• Operating expenses decreased 0.90% year-over-year to RMB 59.52 billion; cost-to-income ratio rose 0.15 percentage points to 30.35%.

• Asset impairment losses fell 7.27% year-over-year to RMB 45.49 billion.

• Basic and diluted EPS for the nine months was RMB 0.84.

Outlook and guidance

• The group emphasized high-quality development and stability, aligning with national financial policy objectives.