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Bank of China (BACHY)
OTHER OTC:BACHY

Bank of China (BACHY) AI Stock Analysis

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Bank of China

(OTC:BACHY)

Rating:78Outperform
Price Target:―
Bank of China's strong financial performance and attractive valuation are key strengths, supported by steady revenue growth and a robust balance sheet. Strategic initiatives in technology and green finance, along with a high dividend yield, enhance its investment appeal. However, the decline in operating cash flow and bearish technical indicators warrant cautious optimism.

Bank of China (BACHY) vs. SPDR S&P 500 ETF (SPY)

Bank of China Business Overview & Revenue Model

Company DescriptionBank of China Limited, together with its subsidiaries, provides various banking and financial services. It operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other Operations. The Corporate Banking segment offers current accounts, deposits, overdrafts, loans, trade-related products and other credit facilities, foreign currency, derivatives, and wealth management products to corporate customers, government authorities, and financial institutions. The Personal Banking segment provides savings deposits, personal loans, credit and debit cards, payments and settlements, wealth management products, and funds and insurance agency services to retail customers. The Treasury Operations segment is involved in foreign exchange transactions, customer-based interest rate and foreign exchange derivative transactions, money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment offers debt and equity underwriting, financial advisory, stock brokerage, investment research and asset management, and private equity investment services, as well as sells and trades in securities. The Insurance segment underwrites general and life insurance products; and provides insurance agency services. As of December 31, 2021, the company had 10,382 branches and outlets, which include 520 institutions in the Chinese mainland and 550 institutions in Hong Kong, Macao, Taiwan, and other countries. It is also involved in the aircraft leasing business. The company was founded in 1912 and is headquartered in Beijing, China.
How the Company Makes MoneyBank of China generates revenue primarily through interest income from loans and advances to customers, which is a significant portion of its earnings. Additionally, the bank earns income from fees and commissions related to services like wealth management, trade financing, and transaction banking. Another important revenue stream is its trading and investment activities, which involve dealing in securities, foreign exchange, and derivatives. The bank also benefits from strategic partnerships and collaborations with other financial institutions and corporations, enhancing its service offerings and expanding its market reach. Furthermore, its global operations allow for diversification of revenue sources across different regions.

Bank of China Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q4-2024)
|
% Change Since: 3.31%|
Next Earnings Date:Aug 30, 2025
Earnings Call Sentiment Positive
The Bank of China showed strong financial performance in 2024 with significant growth in assets, liabilities, and global business contributions. The bank's focus on technology and green finance also highlights its strategic innovations. However, challenges persist in the real estate sector and personal loans, exacerbated by global economic uncertainties. Despite these issues, the overall financial health and strategic developments paint a positive outlook.
Q4-2024 Updates
Positive Updates
Growth in Total Assets and Liabilities
Total assets exceeded RMB35 trillion, and total liabilities reached RMB32 trillion, with increases of 8.11% and 8.20% respectively from the previous year.
Increase in Operating Income and Profit
Operating income rose to RMB632.8 billion, a year-on-year growth of 1.38%. After-tax profit increased by 2.58% to RMB252.7 billion.
Strong Performance in Technology and Green Finance
Provided RMB1.91 trillion in credit to technology-based enterprises, and domestic green credit balance grew by 31.03%.
Significant Increase in Global Business Contribution
Pre-tax profit of foreign commercial banks increased by 40.75% year-on-year, contributing 26.78% to the group, up by 4.08%.
Dividend Implementation and Share Price Increase
For the first time, the bank implemented an interim dividend. Share prices of A and H shares rose by 55.24% and 42.97% respectively.
Negative Updates
Challenges in the Real Estate Market
The real estate industry remains the largest source of new non-performing loans (NPLs), with ongoing pressure on asset quality.
Pressure on Personal Loan Quality
New NPLs for personal operation and mortgage loans increased year-on-year, creating significant pressure on asset quality.
Impact of Global Economic Challenges
Global political and economic uncertainties, including in North America and Europe, pose challenges to overseas asset quality control.
Company Guidance
During the Bank of China's 2024 Annual Results Release Conference, the management provided comprehensive guidance on various financial metrics. The bank reported total assets exceeding RMB35 trillion and liabilities reaching RMB32 trillion, marking increases of 8.11% and 8.20% respectively. Operating income was approximately RMB632.8 billion, up by 1.38% year-on-year, while after-tax profit grew by 2.58% to about RMB252.7 billion. Key performance ratios included a net interest margin (NIM) of 1.4%, return on assets (ROA) of 0.75%, and return on equity (ROE) of 9.5%. The cost-to-income ratio was maintained at 28.77%. Asset quality remained stable with a non-performing loan (NPL) rate of 1.25% and a provision coverage ratio rising to 200.6%. The capital adequacy ratio stood at 18.76%. The bank also highlighted a significant rise in A share and H share prices by 55.24% and 42.97%, respectively. Looking ahead to 2025, the Bank of China aims to continue supporting the real economy, enhance its global presence, and improve risk management while focusing on key areas such as AI, green finance, and digital transformation.

Bank of China Financial Statement Overview

Summary
Bank of China demonstrates strong financial performance with steady revenue growth and a solid balance sheet. While profitability remains high, the decline in operating cash flow suggests a need to monitor cash generation. Overall, the bank is well-positioned with low leverage and strong equity.
Income Statement
85
Very Positive
Bank of China has shown a solid revenue growth trajectory with a significant increase in total revenue from 2023 to 2024. The net profit margin remains strong, reflecting consistent profitability. However, EBIT and EBITDA margins are not available for the most recent year, which limits a comprehensive assessment of operational efficiency.
Balance Sheet
90
Very Positive
The company maintains a robust balance sheet with a high equity ratio, indicating strong financial stability. The absence of total debt in the latest year further enhances the debt-to-equity profile. Historically, the bank has maintained a growing stockholders' equity, underscoring its financial strength.
Cash Flow
70
Positive
There is a notable decline in operating cash flow from 2023 to 2024, but free cash flow remains positive, illustrating effective capital expenditure management. The free cash flow to net income ratio suggests that cash generation supports profit levels, though the drop in operating cash flow is a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue786.32B629.41B518.28B617.36B604.08B565.37B
Gross Profit946.20B629.41B1.20T617.36B604.08B565.37B
EBITDA156.04B0.000.000.00302.94B273.52B
Net Income236.22B237.84B231.90B226.52B216.56B192.87B
Balance Sheet
Total Assets35.99T35.06T32.43T28.91T26.72T24.40T
Cash, Cash Equivalents and Short-Term Investments3.91T4.14T2.27T4.10T3.90T3.81T
Total Debt0.000.006.27T1.89T1.72T1.55T
Total Liabilities33.02T32.11T29.68T1.89T1.72T1.55T
Stockholders Equity2.83T2.82T2.63T2.43T2.23T2.04T
Cash Flow
Free Cash Flow651.54B523.73B787.30B-39.08B813.09B33.41B
Operating Cash Flow681.37B550.97B816.45B-11.34B843.26B73.03B
Investing Cash Flow-1.16T-805.99B-539.43B-22.24B-395.56B-17.07B
Financing Cash Flow-151.16B111.86B2.78T2.07T74.34B126.62B

Bank of China Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.68
Price Trends
50DMA
14.60
Positive
100DMA
14.30
Positive
200DMA
12.98
Positive
Market Momentum
MACD
0.03
Positive
RSI
49.58
Neutral
STOCH
24.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BACHY, the sentiment is Positive. The current price of 14.68 is below the 20-day moving average (MA) of 14.73, above the 50-day MA of 14.60, and above the 200-day MA of 12.98, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.58 is Neutral, neither overbought nor oversold. The STOCH value of 24.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BACHY.

Bank of China Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$211.18B11.2010.83%3.26%-1.91%-6.79%
78
Outperform
$215.48B5.319.57%8.31%6.84%-0.66%
SASAN
78
Outperform
$124.39B9.1113.25%2.93%0.26%19.35%
BABAC
76
Outperform
$366.88B14.549.46%2.13%8.23%16.15%
CC
76
Outperform
$162.04B13.716.30%2.58%2.97%87.82%
76
Outperform
$155.48B13.309.18%1.95%5.39%20.82%
61
Neutral
C$14.67B6.1420.17%5.70%26.93%-38.21%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BACHY
Bank of China
14.68
3.83
35.30%
BAC
Bank of America
48.93
9.49
24.06%
C
Citigroup
88.72
26.79
43.26%
HSBC
HSBC Holdings
60.67
19.85
48.63%
MUFG
Mitsubishi UFJ
13.96
3.00
27.37%
SAN
Banco Santander SA
8.55
3.90
83.87%
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.Date of analysis: Apr 24, 2025