Bank of China Limited Class H (HK:3988)
:3988
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Bank of China
(3988)
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Rating:79Outperform
Price Target:
HK$6.00
â–˛(16.96% Upside)
Action:Reiterated
Date:04/30/26
The score is driven primarily by attractive valuation (low P/E and strong dividend yield) and a constructive technical trend (price above major moving averages with positive MACD). Financial performance is solid but held back by cash-flow volatility and some reported ratio inconsistencies; earnings call tone is broadly positive with key watchpoint on net interest margin pressure.
Positive Factors
Capital adequacy and replenishment
The RMB165bn capital replenishment raising CAR to 18.85% materially strengthens loss-absorbing capacity and regulatory buffer. That durable capital base supports ongoing loan growth, underwriting capacity, cross-border expansion and a stable dividend policy over the medium term.
Negative Factors
Net interest margin compression
A persistent NIM decline to 1.26% (‑14bp YoY) reflects structural pressure from a low-rate and competitive deposit environment. Even with liability cost control, sustained margin compression reduces core net interest income and limits room for durable loan-yield expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital adequacy and replenishment
The RMB165bn capital replenishment raising CAR to 18.85% materially strengthens loss-absorbing capacity and regulatory buffer. That durable capital base supports ongoing loan growth, underwriting capacity, cross-border expansion and a stable dividend policy over the medium term.
Read all positive factors
Bank of China (3988) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.97T
Dividend Yield5.67%
Average Volume (3M)216.39M
Price to Earnings (P/E)5.7
Beta (1Y)0.49
Revenue Growth-0.06%
EPS Growth5.64%
CountryHK
Employees312,757
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.80
Shares Outstanding83,622,270,000
10 Day Avg. Volume207,118,871
30 Day Avg. Volume216,387,257
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)0.43
Price to Sales (P/S)1.08
P/FCF Ratio1.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$6.07Price Target Upside18.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.75
Revenue Forecast (FY)HK$679.61B
Bank of China Business Overview & Revenue Model
Company Description
Bank 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...
How the Company Makes Money
Bank of China primarily earns money through a mix of interest-based income and fee/commission-based income, supplemented by trading/market-related income and other operating income.
1) Net interest income (core earnings driver)
- The bank collect...
Bank of China Earnings Call Summary
Earnings Call Date:Mar 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 28, 2026
Earnings Call Sentiment Positive
The call emphasized a strong set of operational achievements: robust asset and liability growth, notable expansion of non‑interest income, improved operating efficiency, strengthened capital ratios, resilient asset quality and meaningful progress in globalization, digitalization and targeted loan initiatives (sci‑tech, green, inclusive finance). The main negatives were pressure on net interest margin, modest net profit growth, competitive deposit market dynamics and external macro/geopolitical risks which pose ongoing vigilance needs. Overall, the positives are broad, quantifiable and strategic, while the lowlights are manageable risks acknowledged with mitigation plans.Positive Updates
Operating Income Growth
Operating income reached RMB 659.9 billion, up 4.28% year-on-year, reflecting steady top-line expansion despite a challenging environment.
Negative Updates
Net Interest Margin Pressure
Net interest margin (NIM) stood at 1.26%, down ~14 basis points YoY; management noted ongoing pressure from a low interest‑rate environment despite signs of stabilization and H2 improvement.
Read all updates
Q4-2025 Updates
Positive
Negative
Operating Income Growth
Operating income reached RMB 659.9 billion, up 4.28% year-on-year, reflecting steady top-line expansion despite a challenging environment.
Read all positive updates
Company Guidance
Management guided that 2026 will prioritize steady, high‑quality growth with a focus on narrowing the decline in net interest margin (NIM 1.26% in 2025) and delivering positive net interest income growth through optimized asset allocation (domestic RMB loans +RMB1.81tn / +9.9% in 2025; bond investment share of interest‑earning assets +21 ppt) and liability cost control (liability interest payout down 37 bps; M2 avg growth ~8.5% over 3 years; RMB deposits +RMB1.37tn in 2025), while keeping loan growth stable (domestic RMB loans to outperform market; overseas loans steady with faster overseas RMB loan growth) and preserving strong capital and credit metrics after the first capital replenishment (RMB165bn; CAR 18.85%) and with asset quality targets maintained (NPL ratio 1.23%; watch‑list 1.47%; provision coverage reported ~200%/coverage ~2.37). They also aim to expand non‑interest income (non‑interest income RMB219.2bn, 33.21% of operating income, +19.21% y/y; net fee income RMB82.2bn, +7.4%), grow transaction and wealth businesses (agency sales +11.8%; mutual funds +12.73%; personal clients ~554m; mobile banking MAU >100m), sustain strong globalization contribution (overseas pretax profit ~27.99%; international settlement USD4.45tn; cross‑border e‑commerce USD1.18tn; RMB clearing banks 18), accelerate digital/AI deployment (cloud >51,000 services; >400 intelligent assistants; RPA >3,600 scenarios), and scale sci‑tech and green finance (sci‑tech loans >RMB4.8tn; AI industry support ≥RMB1tn over 5 years; green loans +27.83%), all while maintaining a 30% payout (RMB0.2310/share) to shareholders.Bank of China Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.22T | 1.22T | 531.26B | 518.28B | 488.48B | 503.06B |
| Gross Profit | 635.28B | 657.18B | 531.26B | 518.28B | 584.72B | 604.08B |
| EBITDA | 308.70B | 329.32B | 324.18B | 0.00 | 312.51B | 305.41B |
| Net Income | 244.78B | 243.02B | 237.84B | 231.90B | 226.52B | 216.56B |
Balance Sheet | ||||||
| Total Assets | 39.46T | 38.36T | 35.06T | 32.43T | 28.91T | 26.72T |
| Cash, Cash Equivalents and Short-Term Investments | 2.84T | 5.09T | 5.27T | 4.46T | 4.10T | 3.90T |
| Total Debt | 2.59T | 2.78T | 2.52T | 2.21T | 1.89T | 1.72T |
| Total Liabilities | 36.49T | 35.15T | 32.11T | 29.68T | 26.33T | 24.37T |
| Stockholders Equity | 2.82T | 3.06T | 2.82T | 2.63T | 2.43T | 2.23T |
Cash Flow | ||||||
| Free Cash Flow | 790.67B | 760.76B | 523.73B | 787.30B | -39.08B | 813.09B |
| Operating Cash Flow | 848.53B | 812.03B | 550.97B | 816.45B | -11.34B | 843.26B |
| Investing Cash Flow | -1.11T | -1.07T | -805.99B | -539.43B | -22.24B | -395.56B |
| Financing Cash Flow | 169.37B | 188.63B | 111.86B | 119.86B | 53.05B | 74.34B |
Bank of China Technical Analysis
Positive
5.13
Price Trends
4.97
Positive
4.76
Positive
4.55
Positive
Market Momentum
0.07
Positive
58.34
Neutral
63.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3988, the sentiment is Positive. The current price of 5.13 is below the 20-day moving average (MA) of 5.16, above the 50-day MA of 4.97, and above the 200-day MA of 4.55, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 63.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3988.
Bank of China Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$1.97T | 5.73 | 8.19% | 5.67% | -0.06% | 5.64% | |
78 Outperform | HK$2.56T | 5.75 | 9.18% | 4.81% | 0.60% | 5.68% | |
73 Outperform | HK$2.81T | 6.18 | 9.18% | 5.46% | -3.35% | 0.57% | |
70 Outperform | HK$2.34T | 5.64 | 9.77% | 5.64% | 0.25% | 3.62% | |
70 Outperform | HK$1.09T | 7.29 | 11.91% | 4.26% | -4.57% | 1.77% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | HK$677.76B | 5.28 | 7.91% | 6.06% | -2.97% | -9.43% |
* Financial Sector Average
HK:3988
Bank of China
5.23
0.66
14.47%
HK:1288
Agricultural Bank of China
6.07
1.40
29.98%
HK:3328
Bank of Communications Co
7.19
0.23
3.36%
HK:0939
China Construction Bank
8.73
1.94
28.48%
HK:3968
China Merchants Bank Co
46.10
-0.27
-0.57%
HK:1398
Industrial and Commercial Bank of China
6.88
1.70
32.87%
Bank of China Corporate Events
Bank of China Publishes 2026 Q1 Pillar 3 Risk Disclosure
Apr 29, 2026
Bank of China has released its 2026 first-quarter Pillar 3 disclosure report, outlining its approach to risk management and key prudential metrics. The document details how the bank measures and manages capital adequacy, risk-weighted assets and l...
Bank of China Posts Higher Q1 Profit and Assets but Faces EPS Pressure
Apr 29, 2026
Bank of China reported first-quarter 2026 operating income of RMB178.8 billion, up 8.44% year on year, with profit attributable to equity holders rising 4.17% to RMB56.6 billion. Total assets expanded 3.22% since year-end 2025 to RMB39.6 trillion,...
Bank of China Clears Preference Share Dividends and Sets RMB350 Billion Bond Issuance Cap
Apr 29, 2026
Bank of China’s board met in Beijing on 29 April 2026 and unanimously approved its first-quarter 2026 report and Pillar 3 disclosure, confirming regulatory compliance and transparency in its financial and risk reporting. The meeting was duly...
Bank of China Shareholders Back Ge Haijiao’s Reappointment at High-Turnout EGM
Apr 22, 2026
Bank of China has disclosed the poll results of its first extraordinary general meeting of 2026, held on April 22 in Beijing, with both on-site and online participation. The meeting attracted 3,623 shareholders and proxies representing about 82.15...
Bank of China Completes RMB50 Billion Tier 2 Capital Bond Issuance
Apr 21, 2026
Bank of China has completed the issuance of RMB50 billion in write-down tier 2 capital bonds in China’s domestic interbank bond market, following prior shareholder and regulatory approvals for a broader capital instrument program of up to RM...
Bank of China Sets April Board Meeting to Review Q1 2026 Results and Preference Share Dividends
Apr 17, 2026
Bank of China has scheduled a board meeting for 29 April 2026 to review and approve the unaudited financial results for the first quarter ended 31 March 2026. The board will also consider dividend distribution plans for the bank’s preference...
Bank of China Names Huang Xueling Executive Vice President After Regulatory Nod
Mar 30, 2026
Bank of China has appointed Ms. Huang Xueling as Executive Vice President, following approval by the Board of Directors on 3 March 2026 and regulatory clearance from the National Financial Regulatory Administration. Her appointment took effect on ...
Bank of China Proposes Final 2025 Dividend for Hong Kong Shareholders
Mar 30, 2026
Bank of China has proposed a final ordinary cash dividend of RMB 1.169 per 10 shares for the financial year ended 31 December 2025, to be paid to holders of its Hong Kong-listed shares. Shareholders will be able to receive the payout in Hong Kong ...
Bank of China Board Clears 2025 Results, Risk Disclosures and Payout Plan
Mar 30, 2026
Bank of China’s board met in Beijing on 30 March 2026 and unanimously approved its 2025 annual report and financial statements, the Pillar 3 capital and risk disclosure, the internal control assessment, the sustainability report and the work...
Bank of China Calls April 2026 EGM to Vote on Director Reappointments and 2024 Pay
Mar 30, 2026
Bank of China has called its first extraordinary general meeting of 2026 for 22 April in Beijing to seek shareholder approval on key governance matters, including the reappointment of executive director Ge Haijiao and non-executive director Zhang ...
Bank of China Publishes 2025 Pillar 3 Risk and Capital Disclosure
Mar 30, 2026
Bank of China has released its 2025 Pillar 3 Disclosure Report, detailing its risk management framework, regulatory capital composition, total loss-absorbing capacity and risk-weighted assets at both consolidated and resolution group levels. The r...
Bank of China Publishes 2025 Audited Annual Results and Reaffirms Global Strategy
Mar 30, 2026
Bank of China has released its audited consolidated results for the year ended 31 December 2025, meeting Hong Kong listing requirements for preliminary annual disclosures and signalling stable regulatory compliance. The bank said its full 2025 ann...
Bank of China Sets March 30 Webcast for 2025 Annual Results
Mar 20, 2026
Bank of China has scheduled a live webcast to present its 2025 annual results on 30 March 2026 from 17:00 to 18:15 Hong Kong time, accessible via the Investor Relations section of its website. President Zhang Hui, board representatives and senior ...
Bank of China Redeems RMB15 Billion Tier 2 Capital Bonds at First Call Date
Mar 20, 2026
Bank of China has fully redeemed a tranche of its tier 2 capital bonds, originally issued in March 2021 with a total size of RMB25 billion, of which the first tranche comprised RMB15 billion in fixed-rate 10-year notes. Exercising its issuer call ...
Bank of China Sets March 30 Board Meeting on 2025 Results and Dividend
Mar 18, 2026
Bank of China has scheduled a board meeting for 30 March 2026 to review and approve the audited consolidated financial statements for the year ended 31 December 2025. The board will also consider a proposal for the final dividend distribution, a d...
Bank of China Board Backs Appointment of New Executive Vice President
Mar 3, 2026
Bank of China’s board of directors convened an on-site meeting in Beijing on 3 March 2026 and unanimously approved the appointment of Ms. Huang Xueling as Executive Vice President. The meeting complied with relevant Chinese corporate laws an...
Bank of China Board Backs 2026 Investment Budget and Elevates Zhang Hui to Compliance Role
Feb 13, 2026
Bank of China’s board met in Beijing on 13 February 2026 and approved the bank’s fixed asset investment budget for 2026, which will now be submitted to a shareholders’ meeting for consideration. The meeting was duly convened with...
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.