BOC Hong Kong (2388) investor relations material

Executive summary

• Profit attributable to equity holders for 2025 rose 4.9% to HK$40.121 billion, with profit for the year up 5.3% to HK$41.19 billion and ROE stable at 11.51%.

• Dividend per share increased 6.8% to HK$2.125, with a payout ratio of 56% and quarterly distribution introduced.

• Maintained leadership in residential mortgage loans, syndicated loans, and IPO receiving bank business for multiple years.

• Expanded cross-border and Southeast Asia business, with SEA-related customer deposits up 20.2% and operating income up 6.2% year-over-year.

• Completed acquisition of BOCI Private Bank in early 2026 to enhance private banking.

Financial highlights

• Profit after tax rose 5.3% to HK$41.2 billion; profit attributable to equity holders up 4.9% to HK$40.121 billion.

• Customer deposits increased 7.9% to HK$2.94 trillion; CASA ratio up to 53.4%.

• Customer loans grew 2.3% to HK$1.72 trillion; loan market share reached 16.27%.

• Net interest income (adjusted for swap) up 1.4% to HK$59.7 billion; net fee and commission income up 13.9% to HK$11.3 billion.

• Cost-to-income ratio improved to 23.6%, outperforming the market average.

Outlook and guidance

• Expects persistent geopolitical complexity and interest rate volatility in 2026, with opportunities in cross-border business and Belt and Road cooperation.

• Focuses on leveraging national strategies, digital/AI innovation, and expanding diversified income sources.

• Aims to maintain high operating efficiency, enhance risk management, and consolidate RMB business leadership.

• Full-year credit costs expected to improve in 2026 if global economies remain stable.