Bank of China (3988) H2 2025 earnings summary

Executive summary

• Achieved steady operational improvement in 2025, with operating income up 4.28% year-on-year and net profit attributable to shareholders rising 2.18%.

• Maintained strong asset quality, with NPL ratio at 1.23% and provision coverage at 200.37%.

• Non-interest income grew 19.21% year-on-year, now comprising 33.21% of operating income.

• Overseas pre-tax profit contribution reached 27.99%, with global expansion and RMB internationalization efforts leading the market.

• Focused on supporting the real economy, technology, green finance, and inclusive finance, with double-digit growth in key loan segments.

Financial highlights

• Operating income reached RMB 659.9 billion, up 4.28% year-on-year; profit attributable to shareholders up 2.18% to RMB243.02 billion.

• Net interest margin declined to 1.26%, while non-interest income surged 19.21% to RMB219.16 billion.

• Cost-to-income ratio improved to 27.84%, down 0.93 ppt year-on-year.

• Group total assets rose to RMB 38.36 trillion, up 9.4% from last year; liabilities at RMB35.15 trillion, up 9.47%.

• Dividend payout ratio maintained at 30%, with total dividends of RMB71.05 billion.

Outlook and guidance

• 2026 marks the start of the 15th Five-Year Plan, focusing on high-quality support for the real economy, digital transformation, and risk management.

• Expects RMB loans in the Chinese mainland to grow by approximately 8% in 2026.

• Will focus on the “five major tasks”: technology finance, green finance, inclusive finance, pension finance, and digital finance.

• Net interest margin decline expected to narrow in 2026, with positive net interest income growth.

• Continued emphasis on globalization, RMB internationalization, and digital finance.