Bank of China Ltd. Q4 FY2025 earnings call

Operating efficiency steadily improved. Resilience of development significantly enhanced. Balanced asset and liability growth. Asset quality remained stable and excellent. Market recognition and shareholder returns remained high. Firmly supporting high-quality development of the real economy. Firmly expanding global advantage and supporting high-level opening up. Firmly consolidate the client end base and enhance competitiveness in key businesses. Firmly coordinated development and safety, safeguard risk and compliance. Firmly promote digital transformation and deepen intelligent environment. Firmly practice in sustainable development and fulfill social responsibility.

Operating income reached about RMB 659.9 billion, an increase of 4.28% year-on-year. Net profit and net profit attributable to shareholders grew by 2.06% and 2.18%, respectively. Group total assets reached RMB 38.36 trillion, up by 9.4% from last year. Total liability reached about RMB 35.15 trillion, up by 9.47%. NPL ratio stood at 1.23%, down by 0.02 ppt from last year-end. Noninterest income increased 19.21% year-on-year and maintained a high proportion of 33.21% of operating income. Overseas pretax profit contribution increased to 27.99%.

2026 is the first year of the 15th 5-year plan period. Will mainly focus in 5 areas: high-quality support for the real economy, high-quality support for opening up, promote high-quality value creation, high-quality digital and intelligent empowerment, high-quality foundation for development. Celebrating 20th anniversary of A+H share listing since listing, total assets have increased 6.2x and cumulative dividends have exceeded RMB 970 billion.

External environment full of uncertainties, global economic growth slowing down, geopolitical situations, trade policies unstable. Frequent regional conflicts and tensions threaten safety of some overseas branches, disruption of industrial and supply chains affect safe development of Chinese enterprise customers. Real estate market transformation, personal loan business pressure, overseas external environment changes challenges.

Q: Regarding strategic planning and business strategy for 15th 5-year plan period, A: BOC will align with strategic deployment for building a strong country in finance, focus on 6 capabilities improvements and 2 transformation promotions.

Q: View on growth trend, structural changes and room for cost improvement of deposits in 2026, A: M2 steady growth, customer deposits steady, time deposit maturity impact limited, structure to change.

Q: NIM in low interest rate environment, A: NIM 1.26% in 2025, 2026 expected NIM decline narrow, focus on optimizing asset liability, global service, interest rate pricing.

Q: Growth of commission rate, A: Noninterest income increased 19.21%, driven by wealth management, settlement, financial market business, 2026 to continue.

Q: Asset quality outlook, A: 2025 asset quality stable, 2026 confident in stability, but face real estate, personal loan, overseas challenges.

Q: Global operation opportunities and challenges, A: Opportunities in national opening up, foreign investment trade, RMB internationalization, etc., challenges in external uncertainty, regional conflicts.

Q: Fintech in sci-tech self-reliance, A: Sci-tech loans over RMB 4.8 trillion, customer base consolidated, comprehensive services remarkable, asset quality sound.

Q: Consumption measures, A: Launched consumer benefit campaign, helped income, served consumption upgrading, smooth cross-border services.

Q: Loans supply and globalization, A: Loan growth steady, structure optimized, globalization expanded customer, currency, product.

Q: RMB international use, A: RMB status rising, BOC made efforts in service network, payment, bond issuance, loans.

Q: Digital finance breakthroughs, A: Consolidated foundation, empowered service quality, established risk control system, future to promote digital transformation.