Bank of China (3988.HK): Asia Financials Corporate Day Takeaways

Research evidence excerpt

Bank of China (3988.HK): Asia Financials Corporate Day Takeaways

Equity Research

23 June 2026 | 9:12PM HKT

Shuo Yang, Ph.D.

+852-2978-0701 | shuo.yang@gs.com

Goldman Sachs (Asia) L.L.C.

Claire Ouyang

+852-2978-6686 |

claire.x.ouyang@gs.com

Bottom line:

We hosted Bank of China IR team and business line managers in a group meeting

and summarize key takeaways as follows: According to the company, 1) NIM:

Management anticipates NIM stabilization or improvement going forward, driven by

an estimated 10bps funding cost reduction over the next three quarters from

repricing 3-year deposits, alongside increased foreign currency asset deployment.

Full-year NII is projected to achieve mid-to-high single-digit growth. 2) Loan: The

bank targets 8-10% full-year loan growth. New corporate loan rates rose 3bps QoQ

in 1Q, while retail loan rates remained stable. 3) Investment: Rmb bond investments

will continue to expand. Duration management and increased AC allocation will

maintain portfolio stability, mitigating rate volatility and boosting the bond income

contribution. 4) Asset Quality: Despite 1Q improvements in the NPL ratio and NPL

coverage ratio, short-term pressure persists within the property and retail sectors,

partially offset by improving overseas asset quality. 5) Performance Outlook: The

bank maintains a positive outlook for full-year revenue and net profit, targeting

sequential quarterly improvement. 6) Shareholder returns: A stable 30% dividend

payout ratio is maintained.

Key Takeaways

1. NIM

n The NIM stood at 1.26% in 1Q26, maintaining stability for four sequential

quarters. Should the LPR remain unchanged, coupled with enhanced asset and

liability management, the bank anticipates NIM to stabilize or even improve