Bank of China’s Hong Kong-listed shares advanced 5.3% to HK$5.875 on Thursday after the lender reported a 5.1% increase in first-half net profit, outpacing broader market declines.
The state-owned bank posted attributable net income of RMB123.6 billion for the six months ended June 30, exceeding the RMB122.0 billion consensus estimate compiled by Visible Alpha. Net interest margin edged up by 1 basis point to 1.27% at quarter-end, while non-interest income rose approximately 5%.
The bank proposed an interim cash dividend of RMB1.19 per 10 shares before tax, up from RMB1.094 in the same period last year. The payout ratio was raised to 31% from 30%, marking the 20th anniversary of its initial public offering.
Asset quality improved, with the non-performing loan ratio declining to 1.2% and provision coverage remaining robust at 285%. Capital adequacy strengthened to 18.3%, an 80-basis-point increase from the prior quarter. Domestic renminbi deposit rates fell by 22 basis points, easing funding costs.
Despite ongoing pressure on China’s banking sector from weak domestic credit demand and low interest rates, Bank of China plans to pursue loan growth above industry averages in the second half. The bank will prioritize technology finance, green finance, and expansion of fee-based businesses globally.
Shares outperformed the Hang Seng Index, which declined 0.7% during the session.
