Bank of China net inches up to 237.8b yuan

Bank of China's (3988) net profit last year inched up by 2.6 percent to 237.8 billion yuan (HK$254.5 billion) as lower interest rates hurt its income.

The state-owned bank's revenue rose by 1.4 percent to 632.8 billion yuan, for the year ended in December 2024.

The net interest income fell by 4 percent to 448.9 billion yuan, as the net interest margin narrowed by 19 basis points to 1.4 percent. The bank cited the decreases in yuan loan prime rates and interest rates associated with the outstanding mortgages amid Beijing's push to reinvigorate the property market as reasons for the decline.

Non-interest income rose by about 17 percent to 183.8 billion yuan.

The bad loan ratio declined by 0.02 percentage points to 1.25 percent, while the ratio of provisions covering non-performing loans climbed by nearly 9 percentage points to 200.6 percent.

BOC declared a final dividend of 1.216 yuan per 10 shares, down by over 48 percent from a year ago.

Staff reporter