Want to see HK:3988 full AI Analyst Report?
Top Page
Bank of China
(3988)
Select Model
Select Model
Rating:74Outperform
Price Target:
HK$7.00
â–²(25.45% Upside)
Action:Reiterated
Date:10/31/26
The score is driven primarily by solid financial performance (profitability and strong cash generation) tempered by higher latest-period leverage and some margin compression. Valuation is a meaningful positive (low P/E and ~4.16% yield), while technicals are moderately bullish with price above key moving averages. The latest earnings call adds support via positive guidance and improving asset-quality/capital commentary, though management highlighted ongoing yield and credit-risk pressures.
Positive Factors
Global cross-border franchise
A broad international network and leading RMB-clearing position provide durable advantages in trade finance, settlement, custody and corporate banking. These capabilities deepen relationships with multinational and Chinese companies abroad, supporting recurring fee income and overseas growth over the medium term.
Negative Factors
Domestic margin pressure
Pressure on domestic loan pricing and the need to reduce deposit costs can compress the spread between asset yields and funding expenses. Even with stable reported NIM, prolonged low rates may limit the conversion of loan growth into proportionate profit growth and constrain earnings momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Global cross-border franchise
A broad international network and leading RMB-clearing position provide durable advantages in trade finance, settlement, custody and corporate banking. These capabilities deepen relationships with multinational and Chinese companies abroad, supporting recurring fee income and overseas growth over the medium term.
Read all positive factors
Bank of China (3988) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.45T
Dividend Yield4.16%
Average Volume (3M)149.93M
Price to Earnings (P/E)8.6
Beta (1Y)0.55
Revenue Growth2.02%
EPS Growth1.80%
CountryHK
Employees313,746
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.80
Shares Outstanding83,622,270,000
10 Day Avg. Volume164,632,203
30 Day Avg. Volume149,931,153
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$6.48Price Target Upside16.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.76
Revenue Forecast (FY)HK$695.89B
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 makes money primarily through a mix of net interest income and non-interest income generated across its corporate, personal, and treasury businesses.
1) Net interest income (interest spread business)
- Lending vs. deposit spread: A ...
Bank of China Earnings Call Summary
Earnings Call Date:Aug 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 30, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. BOC reported steady revenue and profit growth, stable NIM, improved efficiency, strong capital and asset-quality metrics, higher shareholder distributions, continued overseas contribution, and broad-based expansion in technology finance, green finance, custody, wealth management, payments, bond underwriting, AI, and domestic consumption support. Management also acknowledged pressure on domestic asset yields, a low-interest-rate environment, uncertain U.S. dollar rates, slower growth, and sector-specific credit risks, but presented these as areas under active management.Positive Updates
Steady First-Half Financial Growth
First-half operating revenue was RMB 357.1 billion and profit before provision was RMB 230.4 billion, increasing by 8.41% and 9.77% respectively. Net profit attributable to shareholders grew by 4.67% and 5.10% respectively, with the growth rate achieving quarter-on-quarter growth since 2025.
Negative Updates
Pressure on Domestic Asset Yields
Management stated that RMB new-loan interest rates were stabilizing, but when credit was slowing down and quality was improving, overall asset yield was under pressure. The bank identified reducing RMB loan rates and the need to control high-cost deposits as factors affecting NIM.
Read all updates
Q2-2026 Updates
Positive
Negative
Steady First-Half Financial Growth
First-half operating revenue was RMB 357.1 billion and profit before provision was RMB 230.4 billion, increasing by 8.41% and 9.77% respectively. Net profit attributable to shareholders grew by 4.67% and 5.10% respectively, with the growth rate achieving quarter-on-quarter growth since 2025.
Read all positive updates
Company Guidance
For the second half of 2026, BOC said its RMB loan growth rate is higher than average, with support focused on tech innovations, green development, and mid to long-term manufacturing, while overseas commercial banking loans maintain a good growth momentum and overseas RMB denominated loans have double-digit growth; it will continuously lower deposit cost, optimize asset structure, and high yield businesses will gradually grow, while foreign currency NIM contribution will continue. During the 15th Five-Year Plan period, overseas institution net profit contribution will make new breakthroughs, tech finance will remain an important driver, and BOC will support 5,200 AI companies with RMB 660 billion of loan support. BOC said it has every confidence in maintaining a stable asset quality throughout 2026, with adequate risk provision and compensation capabilities, and proposed increasing the payout ratio to 31% with a cash dividend of CNY 1.19 per 10 share.Bank of China Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
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 | 606.11B | 657.18B | 531.26B | 518.28B | 584.72B | 604.08B |
| EBITDA | 326.28B | 329.32B | 324.18B | 326.02B | 312.51B | 305.41B |
| Net Income | 252.04B | 243.02B | 237.84B | 231.90B | 226.52B | 216.56B |
Balance Sheet | ||||||
| Total Assets | 41.09T | 38.36T | 35.06T | 32.43T | 28.91T | 26.72T |
| Cash, Cash Equivalents and Short-Term Investments | 3.03T | 5.09T | 5.27T | 4.46T | 4.10T | 3.90T |
| Total Debt | 10.10T | 2.78T | 2.52T | 2.21T | 1.89T | 1.72T |
| Total Liabilities | 38.06T | 35.15T | 32.11T | 29.68T | 26.33T | 24.37T |
| Stockholders Equity | 2.89T | 3.06T | 2.82T | 2.63T | 2.43T | 2.23T |
Cash Flow | ||||||
| Free Cash Flow | 991.69B | 760.76B | 523.73B | 787.30B | -39.08B | 813.09B |
| Operating Cash Flow | 1.05T | 812.03B | 550.97B | 816.45B | -11.34B | 843.26B |
| Investing Cash Flow | -2.34T | -1.07T | -805.99B | -539.43B | -22.24B | -395.56B |
| Financing Cash Flow | 308.86B | 188.63B | 111.86B | 119.86B | 53.05B | 74.34B |
Bank of China Technical Analysis
Positive
5.58
Price Trends
5.96
Positive
5.58
Positive
5.15
Positive
Market Momentum
0.04
Positive
57.60
Neutral
64.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3988, the sentiment is Positive. The current price of 5.58 is below the 20-day moving average (MA) of 6.08, below the 50-day MA of 5.96, and above the 200-day MA of 5.15, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 64.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3988.
Bank of China Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$1.31T | 7.46 | 12.33% | 4.16% | -0.16% | 5.69% | |
74 Outperform | HK$2.45T | 8.65 | 8.41% | 4.16% | 2.02% | 1.80% | |
71 Outperform | HK$3.03T | 9.01 | 9.73% | 4.35% | 4.19% | 7.85% | |
71 Outperform | HK$3.47T | 8.58 | 9.18% | 4.71% | ― | ― | |
70 Outperform | HK$2.77T | 9.15 | 9.62% | 4.28% | 2.44% | 5.10% | |
70 Neutral | HK$840.08B | 7.99 | 8.14% | 4.27% | -0.80% | -9.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HK:3988
Bank of China
6.15
1.97
47.36%
HK:1288
Agricultural Bank of China
6.94
1.43
25.86%
HK:3328
Bank of Communications Co
8.60
2.07
31.74%
HK:0939
China Construction Bank
10.26
2.97
40.78%
HK:3968
China Merchants Bank Co
54.55
8.21
17.72%
HK:1398
Industrial and Commercial Bank of China
7.90
2.32
41.59%
Bank of China Corporate Events
Bank of China Posts Solid Q3 2026 Earnings and Strong Operating Cash Inflows
Oct 30, 2026
Bank of China reported solid unaudited results for the third quarter and first nine months of 2026, highlighting steady growth in income and assets. The group’s total assets rose 7.17% from the end of 2025 to RMB 41.11 trillion, while capita...
Bank of China Board Approves Q3 Disclosures and Moves to Renew Key Directors
Oct 30, 2026
Bank of China’s board met in Beijing on 30 October 2026, with all 16 directors present, in a session confirmed as compliant with Chinese corporate law and the bank’s Articles of Association. The meeting underscored the bank’s con...
Bank of China Details Capital and Risk Profile in Q3 2026 Pillar 3 Report
Oct 30, 2026
Bank of China has released its 2026 third-quarter Pillar 3 Disclosure Report, outlining the bank’s approach to risk management and key prudential metrics at the consolidated group level. The report is part of regulatory transparency requirem...
Bank of China Dubai Branch Lists CNY2 Billion Notes on NASDAQ Dubai
Oct 26, 2026
Bank of China’s Dubai branch has issued CNY2 billion of 1.60 per cent notes maturing in 2028 under the bank’s US$40 billion medium term note programme. The notes have been admitted to the official list of the Dubai Financial Services A...
Bank of China to Host Online Briefing on 2026 Third-Quarter Results
Oct 23, 2026
Bank of China has announced it will hold its 2026 third quarter results presentation via an online text-based session on 2 November 2026, from 16:30 to 17:30 through the SSE Roadshow Center platform. The event will feature the executive vice presi...
Bank of China Sets Board Meeting to Approve Third-Quarter 2026 Results
Oct 20, 2026
Bank of China has scheduled a board meeting for 30 October 2026 to review and approve the unaudited financial results for the group’s third quarter ended 30 September 2026. The upcoming disclosure will provide investors and other stakeholder...
Bank of China Boosts Capital with RMB50 Billion Tier 2 Bond Issue
Oct 20, 2026
Bank of China has completed the issuance of RMB50 billion in write-down tier 2 capital bonds in the domestic interbank bond market, as part of a broader shareholder-approved plan to issue up to RMB450 billion in capital instruments. The 10-year fi...
Bank of China Bolsters TLAC With RMB40 Billion Non-Capital Bond Issuance
Sep 7, 2026
Bank of China has completed the issuance of 2026 total loss-absorbing capacity (TLAC) eligible non-capital bonds via Bond Connect in China’s domestic interbank bond market, further diversifying its funding structure. The offering follows sha...
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...
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.