Bank of China H1 Profit Up 5%

Bank of China H1 Profit Up 5%

Bank of China (HK:3988) saw its H‑share price rise 5.3% to HK$5.875 on Monday, sharply outperforming the Hang Seng Index, which declined 0.7%. The lender disclosed first‑half net profit attributable to shareholders of RMB123.6 billion, a 5.1% increase year‑on‑year and ahead of the Visible Alpha consensus of roughly RMB122.0 billion. Net interest margin improved by one basis point to 1.27% at quarter‑end.

The board announced an increase in the dividend payout ratio to 31% from the long‑standing 30% level, marking the 20th anniversary of the bank’s IPO. An interim cash dividend of RMB1.19 per 10 shares before tax was proposed, up from RMB1.094 per 10 shares for the first half of 2025.

Asset quality remained stable, with the non‑performing loan ratio falling to 1.2% and provision coverage staying high at 285%. Capital strength improved, as the capital adequacy ratio reached 18.3%, an increase of 80 basis points from the previous quarter.

Non‑interest income grew about 5%, and overseas operations contributed more than a quarter of total group profit. Management highlighted lower funding costs, noting that domestic renminbi deposit rates had declined by 22 basis points, helping to keep liability costs under control.

Looking ahead, the bank said it will aim for loan growth above the industry rate in the second half of the year, focusing on technology finance, green finance, and expanding fee‑based businesses globally. The first‑half results and interim dividend announcement were released on August 28.