Bank of China Reports Net Profit of 187.482 Billion Yuan for First Three Quarters, Up 5.53% YoY
nashnova research
Bank of China (03988.HK) earned RMB 187.5 billion in net profit attributable to shareholders in the first three quarters, up 5.53% year-on-year — net interest income grew double digits, but a 19% surge in impairment losses signals rising bad-debt pressure.
How much did it earn, and how fast is it growing?
Group after-tax profit reached RMB 199.2 billion; net profit attributable to shareholders was RMB 187.5 billion, up 5.09% and 5.53% respectively.
This means → Bank of China's profit growth sits in the middle-to-upper range among major state banks — no surprise, but no stumble either.
Return on average total assets (ROA) came in at 0.67%; weighted-average return on equity (ROE) at 8.70%.
What is driving revenue higher?
Group operating revenue hit RMB 526.8 billion, up 7.05% year-on-year — an increase of RMB 34.7 billion.
The main driver was net interest income — the money earned from the spread between lending and deposit rates — at RMB 359.6 billion, up 10.38%. This means → loan-book expansion combined with a stabilizing spread made interest income the core engine of revenue growth.
Non-interest income totaled RMB 167.2 billion, up just 0.52%; net fee and commission income was RMB 65.6 billion, essentially flat. In plain terms = fee-based businesses barely grew — nearly all the revenue gain came from "earning the spread."
How well is it controlling costs?
Operating expenses fell to RMB 185.8 billion, down 0.42% year-on-year — revenue up, costs down.
The cost-to-income ratio — how much the bank spends for every RMB 100 earned — was 25.72%. This means → expense discipline held firm, with roughly RMB 26 spent to earn every RMB 100.
Is bad-debt risk growing?
Non-performing loans (NPLs) totaled RMB 304.1 billion; the NPL ratio was 1.22%, down 0.01 percentage points from year-end — on the surface, asset quality is improving.
But impairment losses — provisions the bank sets aside for loans it may never recover — hit RMB 295.8 billion, up RMB 15.3 billion or 19.03% year-on-year. This means → the bank itself judges that future bad-debt risk is rising and is front-loading its loss buffers.
The NPL provision-coverage ratio — how many times provisions cover existing bad loans — was 198.30%, down 2.07 percentage points from year-end. In plain terms = even though the bank set more money aside, the coverage ratio still narrowed slightly, suggesting bad loans may be growing a touch faster than provisions — full-year data is needed to confirm the trend.
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