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Bank of Communications Co Ltd Class H (HK:3328)
:3328

Bank of Communications Co (3328) AI Stock Analysis

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HK:3328

Bank of Communications Co

(3328)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
HK$7.00
▲(9.03% Upside)
The score is primarily supported by attractive valuation (low P/E and high dividend yield). This is tempered by moderate financial-risk concerns—especially the sharp TTM increase in leverage and inconsistent cash-flow history—while technical indicators suggest only neutral-to-weak momentum.
Positive Factors
Diversified business model and network
The bank's breadth across corporate, retail, treasury and fee businesses and an extensive network supports diversified revenue streams and customer touchpoints. This scale and product mix provide durable cross‑sell advantages and resilience to isolated segment shocks over months.
Recent revenue acceleration and strong margins
A sharp TTM revenue uptick combined with high reported net and EBIT margins indicates robust core earnings generation. Sustained top‑line momentum and margin durability support internal capital formation for lending and provisioning, improving medium‑term financial flexibility.
Scale with steady net income and ROE
Consistent net income and mid‑single digit ROE reflect a large, stable earnings base. Scale enables funding diversity, distribution reach and operating leverage, helping the bank absorb shocks and maintain market position over a multi‑month horizon.
Negative Factors
Material rise in leverage
A sharp step‑up in leverage reduces balance‑sheet flexibility and raises vulnerability to tighter credit or funding conditions. Higher debt levels can increase regulatory and market pressure on capital ratios, constraining lending capacity and dividend policy over the medium term.
Volatile and declining cash generation
Inconsistent operating and free cash flow, including large year‑to‑year swings, weakens the predictability of internal funding for loan growth, capital returns and provisioning. This volatility elevates refinancing and liquidity planning risk over coming quarters.
Inconsistent profitability quality across years
Uneven margins suggest parts of reported profitability may be influenced by volatile items (trading, one‑offs or accounting timing), reducing confidence in sustained core earnings. That unpredictability complicates long‑term forecasting and capital allocation decisions.

Bank of Communications Co (3328) vs. iShares MSCI Hong Kong ETF (EWH)

Bank of Communications Co Business Overview & Revenue Model

Company DescriptionBank of Communications Co., Ltd. provides commercial banking products and services. The company offers personal banking products and services, including demand, time, call, withdrawal, foreign currency, swap management, and education deposits, as well as certificate of deposits; credit and debit cards; housing and personal loans; and wealth management products, and wealth management advisory and consulting services. It also provides corporate banking products and services, such as corporate time and demand structured deposits; cash management services, such as accounts receivable/accounts payable management, account management, liquidity management, and investment and financing management; financing, settlement, and risk management services; financing services; syndicated loans; overdrafts; investment banking services; offshore banking services, including forex deposit and loan, inter-bank loan, international settlement, forex trading and guarantee, business advisory, and other services; and precious metal leasing and commodity trading services. In addition, the company offers international banking services comprising corporate foreign exchange wealth management, import and export settlement, document settlement, remittance and bill, trade finance, and offshore banking services. Further, it provides treasury, asset management, trustee, insurance, financial leasing, debt-to-equity swap, and other financial services; trust investment, fund management, securities dealing and brokerage, and reinsurance services; and e-banking services. It has 245 branches and 3,025 banking outlets in Mainland China; 22 overseas branches and 68 overseas banking outlets, as well as representative offices in 17 countries. Bank of Communications Co., Ltd. was founded in 1908 and is headquartered in Shanghai, the People's Republic of China.
How the Company Makes MoneyBank of Communications generates revenue primarily through interest income from loans and advances to customers, which constitutes a significant portion of its earnings. The bank charges interest on various types of loans, including personal loans, corporate loans, and mortgages. Additionally, it earns fees and commissions from services such as transaction banking, wealth management, and investment banking activities. The bank also generates income through the management of assets and investments. Significant partnerships with corporations and government entities enhance its service offerings and contribute to revenue growth. Furthermore, the bank's diversified financial services portfolio allows it to capitalize on various market opportunities, thereby stabilizing its income streams.

Bank of Communications Co Financial Statement Overview

Summary
Strong revenue growth and efficient cost management are evident with high gross profit margins. The balance sheet shows balanced leverage, though return on equity has slightly declined. Cash flow metrics indicate improved cash generation, despite challenges in converting income to cash.
Income Statement
78
Positive
The income statement shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 26.69%. The gross profit margin is high at 80.24%, indicating efficient cost management. However, the net profit margin has decreased from 45.20% in 2024 to 29.19% in TTM, suggesting increased expenses or reduced profitability. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.
Balance Sheet
56
Neutral
The balance sheet indicates a moderate debt-to-equity ratio of 0.92 in TTM, showing a balanced approach to leveraging. Return on equity is slightly lower at 7.97% compared to previous years, indicating a slight dip in profitability relative to equity. The equity ratio remains stable, suggesting a strong capital structure.
Cash Flow
48
Neutral
Cash flow analysis reveals a significant improvement in free cash flow growth at 27.23% in TTM, indicating better cash generation capabilities. The operating cash flow to net income ratio is low, suggesting potential challenges in converting income to cash. However, the free cash flow to net income ratio is healthy at 80.62%, reflecting good cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue303.07B207.03B200.62B196.38B202.74B184.49B
Gross Profit163.74B207.03B200.62B196.38B202.74B184.49B
EBITDA108.33B122.85B0.00114.27B108.80B0.00
Net Income97.11B93.59B92.73B92.10B87.58B78.27B
Balance Sheet
Total Assets16.94T14.90T14.06T12.99T11.67T10.70T
Cash, Cash Equivalents and Short-Term Investments0.001.44T1.56T1.44T1.29T1.35T
Total Debt3.53T641.92B1.07T955.47B970.54B482.89B
Total Liabilities15.64T13.75T12.96T11.96T10.69T9.82T
Stockholders Equity1.29T1.14T1.09T1.02T964.65B866.61B
Cash Flow
Free Cash Flow77.05B-99.52B89.73B336.57B-57.72B125.25B
Operating Cash Flow119.30B-57.35B137.32B368.22B-34.77B149.40B
Investing Cash Flow-313.59B-98.09B-116.62B-284.90B-75.55B-94.59B
Financing Cash Flow233.61B42.52B4.89B-32.98B1.31B88.28B

Bank of Communications Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.42
Price Trends
50DMA
6.78
Negative
100DMA
6.66
Negative
200DMA
6.77
Negative
Market Momentum
MACD
-0.06
Negative
RSI
49.44
Neutral
STOCH
86.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3328, the sentiment is Neutral. The current price of 6.42 is below the 20-day moving average (MA) of 6.49, below the 50-day MA of 6.78, and below the 200-day MA of 6.77, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3328.

Bank of Communications Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$2.84T6.2610.39%4.81%-2.85%10.49%
75
Outperform
$1.79T5.095.67%-3.68%2.67%
72
Outperform
HK$2.08T5.335.64%-4.61%0.94%
72
Outperform
$2.86T5.679.40%5.46%-3.35%0.58%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
HK$615.11B5.016.06%-4.42%-2.55%
62
Neutral
HK$668.56B6.039.30%5.37%-1.54%-3.95%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3328
Bank of Communications Co
6.58
0.96
17.02%
HK:1288
Agricultural Bank of China
5.58
1.57
38.98%
HK:3988
Bank of China
4.48
0.84
23.08%
HK:0939
China Construction Bank
7.77
2.08
36.65%
HK:1398
Industrial and Commercial Bank of China
6.24
1.57
33.59%
HK:1658
Postal Savings Bank of China Co., Ltd. Class H
5.14
0.88
20.66%

Bank of Communications Co Corporate Events

Bank of Communications Gains Regulatory Approval for New Independent Director, Marks Board Transition
Jan 5, 2026

Bank of Communications has received approval from China’s National Administration of Financial Regulation for the qualification of Liu Ruixia to serve as an independent non-executive director, after which she has officially taken office. Following this regulatory clearance, Liu has also joined the bank’s Risk Management and Related Party Transactions Control Committee and its Personnel and Remuneration Committee, while long-serving independent non-executive director Shi Lei has stepped down from the board and its key committees, marking a governance transition that refreshes the bank’s independent oversight without reported disagreement or controversy.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Updates Board and Committee Role Allocation
Jan 5, 2026

Bank of Communications Co., Ltd. has published an updated list of its directors and their respective roles across key board committees, detailing the distribution of responsibilities among executive, non-executive and independent non-executive directors. The announcement clarifies leadership positions in strategy, risk management and related-party transactions control, audit, personnel and remuneration, and social responsibility (including ESG and consumer protection), underscoring the bank’s focus on robust corporate governance and committee-based oversight as it manages regulatory, risk and stakeholder expectations.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Updates HKD Payout and Tax Details for 2025 Interim Dividend
Dec 30, 2025

Bank of Communications Co., Ltd. has updated its previously announced interim dividend for the six months ended 30 June 2025, confirming a distribution of RMB 1.563 per 10 shares for the financial year ending 31 December 2025, with Hong Kong shareholders to receive the default payment in HKD at 1.729253 per 10 shares based on an exchange rate of RMB 1 to HKD 1.106368. The ex-dividend date is set for 17 December 2025, with a record date of 24 December 2025 and payment due on 28 January 2026, while both non-resident enterprise and individual shareholders registered outside the PRC will generally face a 10% withholding tax on the dividend, underscoring the bank’s ongoing capital return to investors and the tax implications for its international shareholder base.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Updates Interim Dividend Details
Dec 12, 2025

Bank of Communications Co., Ltd. has announced an update regarding its interim dividend distribution for the six months ending June 30, 2025. The update includes changes to the closing date and time for currency option election and details on withholding tax. The interim dividend declared is RMB 1.563 per 10 shares, with the payment date set for January 28, 2026. The announcement also outlines the tax obligations for non-resident enterprise and individual shareholders, emphasizing the bank’s compliance with relevant regulatory requirements.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Approves 2025 Interim Dividend Plan
Dec 12, 2025

Bank of Communications Co., Ltd. held its fourth extraordinary shareholders’ meeting on December 12, 2025, where the 2025 interim profit distribution plan was approved. The meeting saw significant shareholder participation, with over 76% of eligible shares represented. The resolution passed with an overwhelming majority, allowing for an interim cash dividend of RMB1.563 per 10 shares to be distributed to shareholders. This decision underscores the bank’s strong financial performance and commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Boosts Registered Capital with New Share Offering
Dec 11, 2025

Bank of Communications Co., Ltd. has announced an increase in its registered capital following the issuance of over 14 billion A Shares to a specified investor. This capital increase, approved by the National Financial Regulatory Administration, raises the bank’s registered capital from RMB74.26 billion to RMB88.36 billion, potentially strengthening its financial position and market competitiveness.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Reschedules 2025 Shareholders’ Meeting
Dec 9, 2025

Bank of Communications Co., Ltd. announced a change in the timing of its 2025 fourth extraordinary shareholders’ meeting, originally scheduled for 9:30 on December 12, 2025, now rescheduled to 14:00 on the same day. This adjustment is due to work scheduling needs, and while the proxy forms remain unchanged, shareholders are reminded to submit them in accordance with the instructions provided. The announcement underscores the bank’s commitment to maintaining transparent communication with its stakeholders, despite the inconvenience caused by the rescheduling.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Schedules Extraordinary Shareholders’ Meeting
Nov 20, 2025

Bank of Communications Co., Ltd. has announced an extraordinary shareholders’ meeting scheduled for December 12, 2025, in Shanghai. The meeting aims to approve the 2025 interim profit distribution plan, which could have significant implications for the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Updates Interim Dividend Details
Nov 20, 2025

Bank of Communications Co., Ltd. has announced an update to its proposed interim dividend distribution for the six months ending June 30, 2025. The dividend is set at RMB 1.563 per 10 shares, with the ex-dividend date on December 17, 2025, and payment scheduled for January 28, 2026. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its market positioning by reinforcing investor confidence.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Completes RMB30 Billion Bond Issuance
Nov 14, 2025

Bank of Communications Co., Ltd. has successfully completed the issuance of its 2025 Third Tranche of Total Loss-Absorbing Capacity Non-Capital Bonds in the national inter-bank bond market, raising RMB30 billion. This issuance, consisting of fixed and floating rate bonds, aims to enhance the bank’s total loss-absorbing capacity, thereby strengthening its financial stability and resilience in compliance with regulatory requirements.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Enhances Audit Committee Governance
Oct 30, 2025

Bank of Communications Co., Ltd. has revised the working rules of its Audit Committee to improve decision-making and governance. The Audit Committee, consisting mainly of independent directors, is tasked with overseeing financial reviews, audits, and internal controls, thereby reinforcing the bank’s commitment to transparency and accountability.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Updates Governance Structure for Enhanced Management
Oct 30, 2025

Bank of Communications Co., Ltd. has revised the working rules for its Personnel and Remuneration Committee, aiming to enhance the governance structure and improve nomination and remuneration management. The committee, consisting mainly of independent directors, is tasked with managing these areas and ensuring effective communication with other committees and senior management, thereby strengthening the decision-making mechanism of the Board of Directors.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Enhances Governance with Revised Committee Rules
Oct 30, 2025

The Bank of Communications Co., Ltd. has revised the working rules of its Personnel and Remuneration Committee to enhance its governance structure and improve decision-making mechanisms. This revision aims to streamline the management of nomination and remuneration matters, ensuring effective communication with other committees and senior management, thereby reinforcing the bank’s operational efficiency and strategic alignment.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Reports Steady Growth in Q3 2025 Financial Results
Oct 30, 2025

Bank of Communications Co., Ltd. announced its unaudited financial results for the third quarter of 2025, showing a steady increase in total assets and loans to customers compared to the previous year. The bank reported a 4.02% increase in total assets and a 6.04% rise in loans to customers, reflecting robust operational growth. Despite a slight decrease in net assets per share, the bank’s net operating income and profit before tax showed positive growth, indicating a stable financial performance. These results suggest a strong positioning in the financial market, with implications for continued shareholder confidence and potential future growth.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications to Announce Q3 2025 Results and Host Investor Briefing
Oct 27, 2025

Bank of Communications Co., Ltd. announced that it will release its third-quarter results for 2025 on October 30, 2025, via the Hong Kong Stock Exchange website. To enhance investor understanding, the bank will host an online results briefing on November 7, 2025, featuring key executives to discuss the bank’s performance and address investor questions.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Announces Board Meeting for Quarterly Results
Oct 20, 2025

Bank of Communications Co., Ltd. has announced a board meeting scheduled for October 30, 2025, to discuss the unaudited quarterly results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the bank’s financial performance and could impact its market positioning and stakeholder decisions.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

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: Jan 14, 2026