Bank of China Limited

In the first half, operating revenue was RMB 357.1 billion, profit before provision was RMB 230.4 billion, net profit attributable to shareholders rose 4.67%, and net profit attributable to shareholders of the bank rose 5.10%. NIM stabilized at 1.27%, net interest income grew 10.20%, and the cost-income ratio fell 1.68 percentage points. Total assets exceeded RMB 40 trillion, up 4.77% from the end of last year; total liabilities reached RMB 36.95 trillion, up 5.11%. Domestic RMB loans grew RMB 1.2 trillion, or 5.98%. The NPL ratio was 1.22%, down 0.01 percentage point, provision coverage was 285%, up 0.48 percentage point, and the CAR was 18.31%, up 80 basis points from the previous quarter. Non-interest income was RMB 120.38 billion, up 5.04%. Management said the bank will keep pushing balanced asset-liability growth, with support from tech, green, and inclusive lending, while continuing to optimize deposit costs, expand fee income, and sustain overseas growth. It also proposed a higher payout ratio of 31% and declared a cash dividend of CNY 1.19 per 10 shares.

Zhang Hui framed the quarter as evidence that BOC’s long-term strategy is working, citing stronger global reach, better governance, and sustained progress through the 14th Five-Year Plan. His emphasis was on balancing growth and quality, with domestic lending focused on key policy areas and overseas business positioned as a key profit engine. He sounded constructive and confident, repeatedly linking the results to BOC’s globalization, tech finance, and service to the real economy.

CFO-style commentary focused on stable margins, funding discipline, and fee-income diversification. Management said first-half NIM was 1.27%, RMB deposit costs fell 22 basis points, and foreign-currency NIM improved, helping offset pressure from lower loan pricing; they also said overseas current deposits were rising and foreign-currency deposit-loan spreads improved. On non-interest income, they cited RMB 120.38 billion of revenue, up 5.04%, driven by settlement/clearing, custody, wealth management, and financial-market businesses. Capital and asset quality were described as ample and stable, with NPL coverage at 285% and CAR at 18.31%, supporting a 31% payout ratio proposal.

Analysts focused on three main issues: asset-liability management, NIM outlook, and non-interest income durability. Management said RMB loan growth would remain above average while the bank keeps optimizing domestic and overseas mix, deposit structure, and non-interest revenue sources; on NIM, it said domestic loan yields are under pressure, but lower deposit costs and stronger foreign-currency NIM should support resilience even if USD rates stay uncertain. On fee income, management pointed to settlement, custody, wealth management, and financial-market businesses as the main drivers and said it expects these to remain supported by cross-border activity and wealth demand. Questions on globalization, tech finance, consumption, bond underwriting, asset quality, and AI were answered with similar themes: leverage the overseas network, deepen customer-service ecosystems, and keep risk management tight.