Bank of China (3988) H1 2024 earnings summary

Executive summary

• Operating income for H1 2024 was RMB317.93 billion, with net profit after tax at RMB126.54 billion and profit attributable to equity holders at RMB118.60 billion, both slightly down year-over-year.

• Total assets reached RMB33.91 trillion, up 4.55% from prior year-end, and total liabilities at RMB31.13 trillion, up 4.90%.

• Customer base expanded, especially among tech-based enterprises and retail clients.

• Focused on technology, green, inclusive, pension, and digital finance, with significant increases in green credit and inclusive finance loans.

• Enhanced global operations, with overseas business contributing 23.95% of total profit before tax.

Financial highlights

• Net interest income was RMB226.76 billion, down 3.09% year-over-year; non-interest income rose 6.36% to RMB91.17 billion, now 28.68% of operating income.

• Net interest margin declined to 1.44%, down 23bps year-over-year.

• Cost-to-income ratio improved to 25.54%, down 0.23 percentage points year-over-year.

• Total loans grew 5.92% to RMB21.14 trillion; deposits up 3.16% to RMB23.63 trillion.

• Allowance for loan impairment to NPLs coverage ratio at 201.69%.

Outlook and guidance

• Expects global economy to maintain steady growth in H2 2024, with China’s economy showing stable operation and new opportunities for banking sector transformation.

• Will focus on supporting real economy, expanding global operations, enhancing risk management, and accelerating digital transformation.

• Plans to enhance global competitiveness, support Belt and Road cooperation, and promote RMB internationalisation.