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Bank of China (BACHY)
OTHER OTC:BACHY
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Bank of China
(OTC:BACHY)
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Rating:69Neutral
Price Target:
$15.50
â–²(5.59% Upside)
Bank of China's strong financial performance and attractive valuation are key strengths, supported by a positive earnings call. However, technical indicators suggest potential bearish momentum, and challenges in revenue and cash flow growth need attention.
Positive Factors
Asset Growth
The increase in total assets indicates strong growth and expansion capabilities, enhancing the bank's ability to leverage opportunities and support financial stability.
Advances in Technology and Green Finance
Investments in technology and green finance position the bank as a forward-thinking institution, aligning with global sustainability trends and potentially attracting eco-conscious clients.
Improved Asset Quality
A lower NPL ratio reflects improved asset quality, reducing risk and enhancing financial health, which is crucial for long-term stability and investor confidence.
Negative Factors
Negative Revenue Growth
Negative revenue growth suggests challenges in expanding market share or product offerings, potentially impacting long-term profitability and competitive positioning.
Pressure on Net Interest Margin
Declining NIM indicates pressure on profitability from core banking operations, which could affect the bank's ability to generate income in a low-interest-rate environment.
Challenges in Retail and Overseas Business
Rising NPLs in retail and overseas segments highlight potential risk areas, which could lead to increased provisions and impact overall financial performance.
Bank of China (BACHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$234.31B
Dividend Yield4.04%
Average Volume (3M)5.14K
Price to Earnings (P/E)5.1
Beta (1Y)0.15
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. Volume3,877
30 Day Avg. Volume5,142
Financial Highlights & Ratios
PEG Ratio-0.97
Price to Book (P/B)0.41
Price to Sales (P/S)2.20
P/FCF Ratio2.23
Enterprise Value/Market Cap3.89
Enterprise Value/Revenue1.00
Enterprise Value/Gross Profit1.50
Enterprise Value/Ebitda2.33
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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:Mar 27, 2026
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 a high net profit margin and efficient operations. However, the negative revenue and cash flow growth are concerning, and the lack of equity ratio data limits a full assessment.Income Statement
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.75
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.60
Neutral
| 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 | 392.14B | 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
Neutral
14.68
Price Trends
14.28
Positive
14.32
Positive
14.35
Positive
Market Momentum
0.19
Positive
46.98
Neutral
15.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BACHY, the sentiment is Neutral. The current price of 14.68 is below the 20-day moving average (MA) of 14.99, above the 50-day MA of 14.28, and above the 200-day MA of 14.35, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 46.98 is Neutral, neither overbought nor oversold. The STOCH value of 15.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BACHY.
Bank of China Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $247.11B | 15.20 | 8.66% | 4.55% | -9.54% | -22.46% | |
77 Outperform | $181.21B | 14.33 | 9.01% | 2.72% | -1.09% | 8.53% | |
76 Outperform | $117.93B | 12.67 | 9.09% | 2.79% | -0.66% | 23.90% | |
72 Outperform | $160.46B | 10.79 | 12.54% | 2.00% | -15.34% | 16.71% | |
69 Neutral | $234.31B | 5.15 | 9.20% | 4.04% | -0.76% | 2.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $184.63B | 14.51 | 6.88% | 2.17% | -0.62% | 105.57% |
* Financial Sector Average
BACHY
Bank of China
14.39
3.27
29.35%
C
Citigroup
106.72
37.15
53.40%
HSBC
HSBC Holdings
72.01
27.14
60.49%
MUFG
Mitsubishi UFJ
15.80
3.97
33.56%
SMFG
Sumitomo Mitsui
18.55
3.58
23.91%
SAN
Banco Santander SA
10.93
6.34
138.13%
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.