BOC Hong Kong (2388) Q1 2025 earnings summary

Executive summary

• Net operating income before impairment allowances rose 12.9% year-over-year and 15.2% quarter-on-quarter, reflecting strong business momentum in Q1 2025.

• Net fee and commission income surged 34.7% year-over-year, driven by robust investment and insurance business amid improved market sentiment.

• The group maintained a leading position in cross-border, RMB, and green finance businesses, and accelerated digital transformation and regional expansion.

Financial highlights

• Net operating income before impairment: HK$20,087 million, up 12.9% year-over-year and 15.2% quarter-on-quarter.

• Net interest income (including FX swaps): HK$14,778 million, up 3.4% year-over-year; net interest margin at 1.55%, down 6 bps year-over-year and 15 bps quarter-on-quarter.

• Net fee and commission income: HK$3,424 million, up 34.7% year-over-year and 38.0% quarter-on-quarter.

• Operating expenses: HK$4,119 million, up 3.4% year-over-year, down 19.6% quarter-on-quarter; cost-to-income ratio at 20.51%.

• Net charge of impairment allowances: HK$1,264 million, up HK$381 million year-over-year, down HK$495 million quarter-on-quarter.

Outlook and guidance

• The group remains focused on asset-liability management, deposit cost control, and digital transformation to navigate uncertain interest rate environments.

• Continued emphasis on cross-border, RMB, and green finance businesses, and regional expansion in Southeast Asia.