Bank of China (BACHY) AI Stock Analysis

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Bank of China

(OTC:BACHY)

Rating:69Neutral

Price Target:

$15.50

▲(8.32% Upside)

Bank of China's strong valuation and steady financial performance are key strengths, supported by a high dividend yield and low P/E ratio. However, technical indicators suggest potential bearish momentum, and challenges in revenue growth and cash flow management need attention. The earnings call provided a balanced view with more positives than negatives.

Positive Factors

Asset Growth

The growth in total assets indicates a strong capacity for expansion and increased market influence, supporting long-term business sustainability.

Advances in Technology and Green Finance

Investments in technology and green finance align with global trends, enhancing competitive positioning and future revenue streams.

Improved Asset Quality

A lower NPL ratio reflects better asset quality, reducing risk and enhancing financial stability, which is crucial for long-term success.

Negative Factors

Pressure on Net Interest Margin (NIM)

Declining NIM due to low interest rates can compress profitability, challenging the bank's ability to maintain earnings growth over time.

Negative Revenue Growth

Negative revenue growth suggests challenges in expanding business operations and market share, potentially impacting long-term profitability.

Challenges in Retail and Overseas Business

Increased NPLs in retail and overseas segments indicate operational risks and market uncertainties, which could hinder growth and stability.

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

Market Cap

$210.71B

Dividend Yield4.45%

Average Volume (3M)6.05K

Price to Earnings (P/E)5.1

Beta (1Y)0.13

Revenue Growth-0.76%

EPS Growth2.94%

CountryUS

Employees312,757

SectorFinancial

Sector Strength70

IndustryBanks - Diversified

Share Statistics

EPS (TTM)0.63

Shares Outstanding3,344,891,000

10 Day Avg. Volume4,027

30 Day Avg. Volume6,048

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap4.33

Enterprise Value/Revenue1.00

Enterprise Value/Gross Profit1.50

Enterprise Value/Ebitda3.05

Forecast

1Y Price Target

$15.50

Price Target Upside8.32% Upside

Rating ConsensusHold

Number of Analyst Covering0

Bank of China Business Overview & Revenue Model

Company DescriptionBank of China (BACHY) is one of the largest and oldest banks in China, offering a wide range of financial services and products including commercial banking, investment banking, insurance, and wealth management. As a key player in the global banking sector, BACHY operates across various segments such as corporate banking, personal banking, and treasury operations, with a strong presence both domestically and internationally. The bank is known for facilitating trade and investment, providing comprehensive financial solutions to its clients.

How the Company Makes MoneyBank of China generates revenue primarily through interest income from loans to individuals and businesses, as well as fees from various financial services such as account management, transaction processing, and advisory services. The bank's revenue model includes key streams such as net interest income (the difference between interest earned on loans and interest paid on deposits), service charges, and commissions from investment banking and wealth management activities. Additionally, the bank engages in foreign exchange trading and investment activities that contribute to its earnings. Significant partnerships with corporations, government entities, and international financial institutions enable BACHY to expand its service offerings and enhance its revenue-generating capabilities.

Bank of China Earnings Call Summary

Earnings Call Date:Aug 29, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Positive

The earnings call highlighted steady financial performance, asset growth, improved asset quality, and significant advances in technology and green finance. However, challenges remain, particularly in maintaining NIM and addressing retail and overseas business risks. Overall, the positive aspects slightly outweigh the negative challenges.

Q2-2025 Updates

Positive Updates

Steady Growth in Financial Performance

Operating income reached RMB 329.4 billion, a year-on-year increase of 3.61%, with net fee income growing 9.17% year-on-year. Post-tax profit reached RMB 126.1 billion.

Strong Asset and Liability Growth

Total assets rose to RMB 36.79 trillion, up 4.93% from last year, and total liabilities reached RMB 33.66 trillion, up 4.85%.

Improved Asset Quality

NPL ratio decreased to 1.24% from 1.25% at the end of last year, with a NPL coverage ratio of 197.39%.

High Dividend Payout

Interim dividend for 2025 proposed at RMB 1.094 per 10 shares totaling RMB 35.25 billion, maintaining a high payout ratio of 30%.

Significant Advances in Technology and Green Finance

Loans to strategic emerging industries increased by 22.92% and green loans increased by 16.95% from the end of last year.

Global Operations Contribution

Operating income and pretax profit for overseas institutions increased by 14.43% and 10.29% year-on-year, respectively.

Negative Updates

Pressure on NIM

NIM stood at 1.26%, down 14 bps year-on-year, with continued pressure due to low interest rates and LPR declines.

Challenges in Retail and Overseas Business

Retail operation loan and consumer loan NPLs increased year-on-year, and uncertainties remain in the external environment impacting overseas business.

Company Guidance

During the Bank of China 2025 Interim Results Press Conference, the bank provided a comprehensive outlook of its financial performance and strategic priorities. Key metrics highlighted include an operating income of RMB 329.4 billion, a year-on-year increase of 3.61%, with net fee income growing 9.17%. Post-tax profit reached RMB 126.1 billion, while post-tax profit attributable to shareholders was RMB 117.6 billion. The bank maintained a Net Interest Margin (NIM) of 1.26%, a Return on Assets (ROA) of 0.7%, and a Return on Equity (ROE) of 9.11%. Asset quality remained stable with a Non-Performing Loan (NPL) ratio of 1.24%, a slight decrease from the previous year. The bank's total assets increased to RMB 36.79 trillion, marking a 4.93% rise from the end of last year, while total liabilities grew to RMB 33.66 trillion, up by 4.85%. The bank also emphasized a significant increase in loans to strategic emerging industries, which rose by 22.92%, and a 15.42% growth in personal consumption loans. A proposed interim dividend of RMB 1.094 per 10 shares, totaling RMB 35.25 billion, was announced, maintaining a high payout ratio of 30%. The bank's leadership underscored their commitment to serving the real economy through strategic focus areas such as technology finance, infrastructure development, and green finance, while leveraging global operations to enhance financial services and asset management capabilities.

Bank of China Financial Statement Overview

Summary

Bank of China demonstrates strong profitability with high net profit and EBIT margins. However, the negative revenue growth and cash flow challenges are concerns. The balance sheet shows moderate leverage, but the lack of equity ratio data limits a full assessment.

Income Statement

Positive

Bank of China shows a strong net profit margin of 30.21% in TTM, indicating robust profitability. However, the revenue growth rate is negative at -0.66%, suggesting a decline in revenue. The EBIT margin is solid at 28.64%, reflecting efficient operations, but the negative revenue growth is a concern.

Balance Sheet

Positive

The debt-to-equity ratio is moderate at 0.89, indicating a balanced approach to leveraging. Return on equity is healthy at 8.33%, showing effective use of equity. However, the equity ratio is not provided, limiting a full assessment of financial stability.

Cash Flow

Neutral

Free cash flow to net income ratio is strong at 1.03, indicating good cash generation relative to net income. However, the free cash flow growth rate is negative at -5.80%, suggesting challenges in maintaining cash flow levels. The operating cash flow to net income ratio is negative, indicating potential issues in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	908.85B	531.26B	518.28B	488.48B	503.06B	450.76B
Gross Profit	608.93B	531.26B	518.28B	584.72B	604.08B	450.76B
EBITDA	298.77B	324.18B	0.00	312.51B	302.94B	273.52B
Net Income	236.83B	237.84B	231.90B	226.52B	216.56B	192.87B
Balance Sheet
Total Assets	36.79T	35.06T	32.43T	28.91T	26.72T	24.40T
Cash, Cash Equivalents and Short-Term Investments	3.80T	4.14T	2.27T	4.10T	3.90T	3.81T
Total Debt	2.67T	1.03T	907.17B	1.89T	1.72T	1.20T
Total Liabilities	33.66T	32.11T	29.68T	26.33T	24.37T	22.24T
Stockholders Equity	2.99T	2.82T	2.63T	2.43T	2.23T	2.04T
Cash Flow
Free Cash Flow	613.72B	523.73B	787.30B	-39.08B	813.09B	33.41B
Operating Cash Flow	651.05B	550.97B	816.45B	-11.34B	843.26B	73.03B
Investing Cash Flow	-1.29T	-805.99B	-539.43B	-11.72B	-395.56B	-17.07B
Financing Cash Flow	22.35B	111.86B	2.78T	2.07T	74.34B	126.62B

Bank of China Technical Analysis

Technical Analysis Sentiment

Positive

Last Price14.31

Price Trends

50DMA

14.46

Negative

100DMA

14.51

Negative

200DMA

13.72

Positive

Market Momentum

MACD

-0.10

Negative

RSI

54.89

Neutral

STOCH

99.59

Negative

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 14.31 is above the 20-day moving average (MA) of 14.04, below the 50-day MA of 14.46, and above the 200-day MA of 13.72, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 99.59 is Negative, 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 (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	81 Outperform	$237.48B	13.55	10.69%	4.74%	-2.96%	-13.66%
SMFG	76 Outperform	$107.81B	13.72	8.23%	2.44%	0.67%	11.85%
MUFG	74 Outperform	$178.39B	14.65	9.43%	2.23%	0.82%	28.48%
SAN	74 Outperform	$148.78B	10.33	12.85%	2.31%	-14.74%	17.03%
C	70 Outperform	$181.92B	14.37	6.64%	2.31%	0.52%	89.25%
BACHY	69 Neutral	$210.71B	5.14	9.20%	4.45%	-0.76%	2.94%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%

* Financial Sector Average

Performance Comparison

BACHY

Bank of China

14.31

4.03

39.20%

Citigroup

98.82

42.87

76.62%

HSBC

HSBC Holdings

69.16

27.96

67.86%

MUFG

Mitsubishi UFJ

15.65

5.58

55.41%

SMFG

Sumitomo Mitsui

16.73

3.89

30.30%

SAN

Banco Santander SA

10.08

5.32

111.76%

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: Sep 11, 2025