Bank of China (3988) H2 2024 earnings summary

Executive summary

• Total assets reached CNY 35.06 trillion, up 8.11% year-over-year, with liabilities at CNY 32.11 trillion, up 8.20%.

• Operating income was CNY 632.8 billion, up 1.38%, and after-tax profit was CNY 252.7 billion, up 2.58%.

• Asset quality remained stable with NPL ratio at 1.25% and provision coverage at 200.6%.

• Shareholder returns were strong, with interim and proposed final dividends totaling RMB2.424 per 10 shares and share price surges post-dividend.

• Enhanced support for real economy, technology, green, inclusive, and digital finance, with notable growth in green and inclusive loans.

Financial highlights

• Net interest income was RMB448.93 billion (down 3.77%), while non-interest income grew 16.65% to RMB183.84 billion.

• Domestic RMB company loan balance exceeded CNY 12 trillion; loans to strategic sectors and private enterprises rose significantly.

• International settlement and cross-border RMB settlement volumes increased by 20.51% and 26.27%.

• Overseas assets reached $1.15 trillion, contributing 22.48% of total assets; overseas pre-tax profit was $11.106 billion, 26.72% of group profit.

• Cost-to-income ratio remained low at 28.77%, with general operating expenses down 1.21% year-over-year.

Outlook and guidance

• 2025 focus: customer demand, diversified/professional financial services, global distribution, risk prevention, and digital transformation.

• Domestic RMB loan growth expected to remain steady, with corporate loans dominating and consumer loans contribution to increase.

• Continued support for infrastructure, technology, green industries, and regional development; proactive management of asset quality and risk.

• Overseas business to leverage high foreign interest rates and expand in key regions, with risk management as a priority.

• Emphasis on early risk identification and comprehensive risk management to prevent systemic risks.