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Bank of China
(3988)
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Rating:74Outperform
Price Target:
HK$6.00
â–²(7.53% Upside)
Action:Reiterated
Date:08/29/26
Overall score is driven by constructive technicals (price above key moving averages with positive MACD) and attractive valuation (low P/E and ~4.58% dividend yield). Financial performance is generally solid on profitability and recent cash generation, but the score is tempered by increased balance-sheet leverage and historical volatility in certain reported margins/cash-flow metrics.
Positive Factors
Revenue Growth and Profitability
Recent revenue growth combined with strong profitability indicates broad earnings capacity across corporate, retail, treasury and international banking. If maintained, this scale and diversified income base can support resilient earnings over the next several quarters.
Negative Factors
Meaningfully Higher Balance-Sheet Leverage
The sharp leverage increase reduces financial flexibility and raises sensitivity to funding costs, asset quality deterioration and tighter credit conditions. For a bank, sustained balance-sheet expansion without equivalent capital support could constrain future growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Profitability
Recent revenue growth combined with strong profitability indicates broad earnings capacity across corporate, retail, treasury and international banking. If maintained, this scale and diversified income base can support resilient earnings over the next several quarters.
Read all positive factors
Bank of China (3988) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.24T
Dividend Yield4.28%
Average Volume (3M)183.23M
Price to Earnings (P/E)8.0
Beta (1Y)0.50
Revenue Growth2.02%
EPS Growth1.80%
CountryHK
Employees310,898
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.80
Shares Outstanding83,622,270,000
10 Day Avg. Volume242,353,638
30 Day Avg. Volume183,234,547
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)0.43
Price to Sales (P/S)1.08
P/FCF Ratio1.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.96Price Target Upside6.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.76
Revenue Forecast (FY)HK$691.31B
Bank of China Business Overview & Revenue Model
Company Description
Bank of China Limited, along with its various affiliates, delivers a comprehensive array of banking and financial products and services. The institution's operations are strategically divided into six key divisions: Corporate Banking, Personal Ban...
How the Company Makes Money
Bank of China primarily makes money through (1) net interest income and (2) non-interest income (fees, commissions, and trading-related income), with additional contributions from investment and other operating income.
1) Net interest income (cor...
Bank of China Earnings Call Summary
Earnings Call Date:Mar 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call emphasized a strong set of operational achievements: robust asset and liability growth, notable expansion of non‑interest income, improved operating efficiency, strengthened capital ratios, resilient asset quality and meaningful progress in globalization, digitalization and targeted loan initiatives (sci‑tech, green, inclusive finance). The main negatives were pressure on net interest margin, modest net profit growth, competitive deposit market dynamics and external macro/geopolitical risks which pose ongoing vigilance needs. Overall, the positives are broad, quantifiable and strategic, while the lowlights are manageable risks acknowledged with mitigation plans.Positive Updates
Operating Income Growth
Operating income reached RMB 659.9 billion, up 4.28% year-on-year, reflecting steady top-line expansion despite a challenging environment.
Negative Updates
Net Interest Margin Pressure
Net interest margin (NIM) stood at 1.26%, down ~14 basis points YoY; management noted ongoing pressure from a low interest‑rate environment despite signs of stabilization and H2 improvement.
Read all updates
Q4-2025 Updates
Positive
Negative
Operating Income Growth
Operating income reached RMB 659.9 billion, up 4.28% year-on-year, reflecting steady top-line expansion despite a challenging environment.
Read all positive updates
Company Guidance
Management guided that 2026 will prioritize steady, high‑quality growth with a focus on narrowing the decline in net interest margin (NIM 1.26% in 2025) and delivering positive net interest income growth through optimized asset allocation (domestic RMB loans +RMB1.81tn / +9.9% in 2025; bond investment share of interest‑earning assets +21 ppt) and liability cost control (liability interest payout down 37 bps; M2 avg growth ~8.5% over 3 years; RMB deposits +RMB1.37tn in 2025), while keeping loan growth stable (domestic RMB loans to outperform market; overseas loans steady with faster overseas RMB loan growth) and preserving strong capital and credit metrics after the first capital replenishment (RMB165bn; CAR 18.85%) and with asset quality targets maintained (NPL ratio 1.23%; watch‑list 1.47%; provision coverage reported ~200%/coverage ~2.37). They also aim to expand non‑interest income (non‑interest income RMB219.2bn, 33.21% of operating income, +19.21% y/y; net fee income RMB82.2bn, +7.4%), grow transaction and wealth businesses (agency sales +11.8%; mutual funds +12.73%; personal clients ~554m; mobile banking MAU >100m), sustain strong globalization contribution (overseas pretax profit ~27.99%; international settlement USD4.45tn; cross‑border e‑commerce USD1.18tn; RMB clearing banks 18), accelerate digital/AI deployment (cloud >51,000 services; >400 intelligent assistants; RPA >3,600 scenarios), and scale sci‑tech and green finance (sci‑tech loans >RMB4.8tn; AI industry support ≥RMB1tn over 5 years; green loans +27.83%), all while maintaining a 30% payout (RMB0.2310/share) to shareholders.Bank of China Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.22T | 1.22T | 531.26B | 518.28B | 488.48B | 503.06B |
| Gross Profit | 622.70B | 657.18B | 531.26B | 518.28B | 584.72B | 604.08B |
| EBITDA | 316.38B | 329.32B | 324.18B | 326.02B | 312.51B | 305.41B |
| Net Income | 248.23B | 243.02B | 237.84B | 231.90B | 226.52B | 216.56B |
Balance Sheet | ||||||
| Total Assets | 40.18T | 38.36T | 35.06T | 32.43T | 28.91T | 26.72T |
| Cash, Cash Equivalents and Short-Term Investments | 2.48T | 5.09T | 5.27T | 4.46T | 4.10T | 3.90T |
| Total Debt | 8.24T | 2.78T | 2.52T | 2.21T | 1.89T | 1.72T |
| Total Liabilities | 37.19T | 35.15T | 32.11T | 29.68T | 26.33T | 24.37T |
| Stockholders Equity | 2.85T | 3.06T | 2.82T | 2.63T | 2.43T | 2.23T |
Cash Flow | ||||||
| Free Cash Flow | 879.32B | 760.76B | 523.73B | 787.30B | -39.08B | 813.09B |
| Operating Cash Flow | 941.87B | 812.03B | 550.97B | 816.45B | -11.34B | 843.26B |
| Investing Cash Flow | -1.19T | -1.07T | -805.99B | -539.43B | -22.24B | -395.56B |
| Financing Cash Flow | 7.04B | 188.63B | 111.86B | 119.86B | 53.05B | 74.34B |
Bank of China Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$2.24T | 7.96 | 8.41% | 4.28% | 2.02% | 1.80% | |
74 Outperform | HK$1.23T | 7.12 | 12.33% | 4.36% | -0.16% | 5.69% | |
72 Outperform | HK$2.74T | 8.36 | 9.73% | 6.56% | 4.19% | 7.85% | |
71 Outperform | HK$749.60B | 6.89 | 8.14% | 4.56% | -0.80% | -10.99% | |
70 Outperform | HK$2.58T | 8.36 | 9.62% | 4.49% | 2.44% | 5.10% | |
69 Neutral | HK$3.18T | 7.94 | 9.18% | 4.60% | 0.92% | 6.35% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HK:3988
Bank of China
5.97
1.74
41.23%
HK:1288
Agricultural Bank of China
6.38
1.02
19.07%
HK:3328
Bank of Communications Co
8.06
1.51
23.11%
HK:0939
China Construction Bank
9.77
2.31
30.92%
HK:3968
China Merchants Bank Co
52.15
5.75
12.40%
HK:1398
Industrial and Commercial Bank of China
7.61
1.92
33.72%
Bank of China Corporate Events
Bank of China Board Backs Interim Results, Payout Plan and 15th Five-Year Strategy
Aug 28, 2026
Bank of China’s board of directors met in Beijing on 28 August 2026 and unanimously approved the bank’s 2026 interim report and its Pillar 3 disclosure for the first half of the year, confirming board-level support for the latest finan...
Bank of China Proposes Interim Dividend for First Half of 2026
Aug 28, 2026
Bank of China has proposed an interim ordinary dividend of RMB 1.19 per 10 shares for the six months ended 30 June 2026, for the financial year ending 31 December 2026. The payout will be available in Hong Kong dollars by default for the Hong Kong...
Bank of China Details Capital and Risk Profile in H1 2026 Pillar 3 Report
Aug 28, 2026
Bank of China has released its Pillar 3 Disclosure Report for the first half of 2026, detailing its regulatory capital structure, risk-weighted assets, total loss-absorbing capacity, and creditor rankings at both group and resolution-entity levels...
Bank of China Tightens Audit Committee Rules to Bolster Governance
Aug 28, 2026
Bank of China has revised the procedural rules governing the Audit Committee of its Board of Directors for 2026, sharpening the committee’s mandate over financial reporting, disclosure and audit oversight. The revised rules align with China&...
Bank of China Releases Unaudited Interim Results for First Half of 2026
Aug 28, 2026
Bank of China Limited, one of China’s leading state-owned commercial banks, offers comprehensive commercial banking and financial services across the Chinese mainland and international markets. The group operates through globalised and diver...
Bank of China Boosts Additional Tier 1 Capital with RMB20 Billion Perpetual Bond Issue
Aug 24, 2026
Bank of China has completed the issuance of RMB20 billion in write-down undated capital bonds in China’s domestic interbank bond market, following prior shareholder and regulatory approvals for up to RMB450 billion in capital instruments. Th...
Bank of China Sets Live Webcast for 2026 Interim Results Release
Aug 20, 2026
Bank of China has announced that it will hold its 2026 interim results release via live webcast on 28 August 2026, running from 17:00 to 18:15 and accessible through the Investor Relations section of its official website. The session is designed t...
Bank of China to Pay RMB 0.88 Billion in Dividends on Fourth Tranche of Domestic Preference Shares
Aug 20, 2026
Bank of China Limited has approved the dividend distribution plan for its fourth tranche of domestic preference shares traded on the Shanghai Stock Exchange, reinforcing its commitment to providing steady returns to investors. The tranche comprise...
Bank of China Board Sets Date to Approve Interim Results and Dividend
Aug 18, 2026
Bank of China’s board has scheduled a meeting in Beijing on 28 August 2026 to review and approve the interim financial results for the first half of 2026. The session will also consider a proposed interim dividend distribution to shareholder...
Bank of China Boosts Capital With RMB30 Billion AT1 Bond Issuance
Jul 22, 2026
Bank of China has completed the issuance of RMB30 billion in write-down undated capital bonds in China’s domestic interbank bond market, following shareholder approval to issue up to RMB450 billion in capital instruments and clearance from r...
Bank of China Sets 2025 Final Dividend and Clarifies Tax Treatment for Offshore Investors
Jul 14, 2026
Bank of China has proposed a final ordinary cash dividend for the financial year ended 31 December 2025, declaring RMB 1.169 per 10 shares, with Hong Kong shareholders receiving a default payment in HKD based on a specified exchange rate. The time...
Bank of China AGM Shows Strong Shareholder Support and High Turnout
Jun 26, 2026
Bank of China reported the poll results of its 2025 Annual General Meeting, held simultaneously in Hong Kong and Beijing with both onsite and online participation. The meeting drew 1,858 shareholders and proxies, representing about 83% of the bank...
Bank of China Updates Final Dividend Plan and Tax Terms for 2025 Payout
Jun 26, 2026
Bank of China Limited has announced an updated proposal for a final cash dividend for the year ended 31 December 2025, set at RMB 1.169 per 10 shares, with payment to be made primarily in Hong Kong dollars at a rate to be announced and an option t...
Bank of China Raises RMB50 Billion Through Tier 2 Capital Bond Issuance
Jun 16, 2026
Bank of China has completed the issuance of RMB50 billion in write-down tier 2 capital bonds in China’s domestic interbank bond market, following shareholder and regulatory approvals for a broader capital instruments program of up to RMB450 ...
Bank of China to Distribute RMB2.54 Billion Dividend on Third-Tranche Domestic Preference Shares
Jun 16, 2026
Bank of China has approved the annual dividend distribution plan for its third tranche of domestic preference shares, listed in Shanghai, for the dividend period from 27 June 2025 to 26 June 2026. The ex-dividend and share record dates are set for...
Bank of China Sets Terms and Timetable for 2025 Final Dividend
Jun 5, 2026
Bank of China Limited has proposed a final ordinary cash dividend of RMB 1.169 per 10 shares for the financial year ended 31 December 2025, subject to shareholder approval on 26 June 2026. The dividend for Hong Kong-registered shares will be paid ...
Bank of China Sets 2025 AGM, Proposes Final Dividend and Bond Issuance Limit
Jun 5, 2026
Bank of China has called its 2025 annual general meeting for 26 June 2026, to be held simultaneously in Hong Kong and Beijing, where shareholders will vote on routine but significant matters including the 2025 board work report, annual financial r...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.