Dividend Distribution - Bank of China approved the distribution of dividends for the third phase of domestic preferred shares at a rate of 3.48%, amounting to RMB 2.5404 billion, and for the fourth phase at a rate of 3.27%, amounting to RMB 0.8829 billion[6]. - The bank's independent non-executive directors expressed that the proposed dividend distribution complies with legal regulations and the company's articles of association, ensuring no harm to the bank or shareholders[6]. Financial Bonds - The bank plans to issue financial bonds with a total scale not exceeding RMB 350 billion for general purposes, effective from the date of shareholder meeting approval until the next annual shareholder meeting[7]. - The bank's total issuance of financial bonds is aimed at enhancing its capital structure and supporting its general operational needs[7]. Board of Directors - The board of directors unanimously approved the first quarter report for 2025, with all 15 directors voting in favor[4]. - The board approved the nomination of Giovanni Tria for reappointment as an independent non-executive director, with 14 votes in favor and 1 abstention due to conflict of interest[11]. - The bank's board of directors has made adjustments to the professional committee chairpersons and members, with new appointments effective upon regulatory approval[15]. - The board approved amendments to the company's articles of association and meeting rules, with all proposals receiving unanimous support[8]. - The bank will hold its 2024 annual general meeting, with several key proposals submitted for shareholder approval[17]. Independent Director Nomination - Giovanni Tria - Giovanni Tria has over 40 years of academic and professional experience in macroeconomics, price policy, and economic development[22]. - Giovanni Tria served as Italy's Minister of Economy and Finance from 2016 to 2018 and was a member of the IMF Board[22]. - Giovanni Tria has held various advisory roles, including as an advisor to the Italian government from March 2021 to October 2022[22]. - Giovanni Tria has confirmed his independence and compliance with the qualifications required for independent directors as per Chinese regulations[24]. - Giovanni Tria has no significant business relationships or conflicts of interest that would affect his independence[25]. - Giovanni Tria has not been subject to any administrative or criminal penalties by the China Securities Regulatory Commission in the last 36 months[27]. - Giovanni Tria has committed to fulfilling his duties as an independent director without influence from major shareholders or related parties[28]. - Giovanni Tria's tenure as an independent director at Bank of China will not exceed six years[27]. - Giovanni Tria has participated in training and obtained relevant certification recognized by the stock exchange[24]. - Giovanni Tria's experience includes roles at the World Bank and the International Labour Organization, enhancing his qualifications for the position[22]. Independent Director Nomination - Other Candidates - The nominee possesses over 5 years of experience in legal, economic, accounting, finance, or management, essential for fulfilling independent director responsibilities[31]. - The nominee has participated in training and obtained certification recognized by the stock exchange[31]. - The nominee does not hold any shares exceeding 1% of the company's issued shares, ensuring independence[32]. - The nominee has no adverse records, having passed the qualification review by the Bank of China Limited's Human Resources and Compensation Committee[33]. - The nominee has not been subject to administrative penalties or criminal sanctions by the China Securities Regulatory Commission in the last 36 months[34]. - The nominee's concurrent positions as an independent director in domestic listed companies do not exceed three, and tenure at Bank of China Limited has not surpassed six years[34]. - The nominee has extensive experience in auditing, corporate restructuring, and risk management, holding qualifications as a Hong Kong Certified Public Accountant[36]. - The nominee holds a Bachelor's degree in Commerce from the University of Toronto and an MBA from York University[36]. - The nomination is backed by the Board of Directors of Bank of China Limited, ensuring a thorough verification of the nominee's qualifications[34]. Independent Director Candidate - Hu Zhanyun - The independent director candidate, Hu Zhanyun, has over 5 years of relevant work experience in law, economics, accounting, finance, or management[38]. - Hu Zhanyun has confirmed compliance with the qualifications required by the Company Law of the People's Republic of China and other relevant regulations[39]. - There are no conflicts of interest or relationships that could affect Hu Zhanyun's independence as an independent director[40]. - Hu Zhanyun has not been subject to any administrative or criminal penalties by the China Securities Regulatory Commission in the last 36 months[41]. - The number of domestic listed companies where Hu Zhanyun serves as an independent director does not exceed 3[41]. - Hu Zhanyun possesses a registered accountant qualification and has over 5 years of full-time work experience in accounting, auditing, or financial management[41]. - Hu Zhanyun commits to comply with all relevant laws, regulations, and rules during the tenure as an independent director[42]. - Hu Zhanyun will resign if any circumstances arise that affect his qualifications as an independent director[42]. - The nomination has been reviewed and approved by the Human Resources and Compensation Committee of the Board of Directors of the Bank of China[40]. - The statement confirms the independence and qualifications of Hu Zhanyun as an independent director candidate[43]. Independent Director Nomination - General Qualifications - The nominee for the independent director position at Bank of China has over 5 years of relevant work experience in law, economics, accounting, finance, or management[45]. - The nominee has passed the qualification review by the Bank of China's Human Resources and Compensation Committee, confirming no conflicts of interest[47]. - The nominee has not been subject to any administrative penalties or criminal sanctions by the China Securities Regulatory Commission in the last 36 months[48]. - The nominee has extensive accounting knowledge and experience, holding a CPA qualification with over 5 years of full-time work in accounting, auditing, or financial management[48]. - The nominee's tenure as an independent director at Bank of China will not exceed 6 years, and they serve as an independent director at no more than three domestic listed companies[48]. - The nominee has participated in training and obtained relevant certification recognized by the stock exchange[45]. - The nominee does not hold more than 1% of the issued shares of the listed company or is not among the top ten shareholders[46]. - The nominee has no significant business dealings with the listed company or its controlling shareholders[46]. - The nominee has not been publicly reprimanded by the stock exchange or received three or more critical notices in the last 36 months[48]. - The nominee has a clean record with no major credit issues or other disqualifying circumstances[48]. Independent Director Nomination - Gao Meiyi - The nominee, Gao Meiyi, has over 5 years of relevant experience in law, economics, accounting, finance, and management, qualifying her for the independent director position at Bank of China Limited[53]. - The nominee has participated in training and obtained certification recognized by the securities exchange, confirming her qualifications[60]. - The nominee confirms independence, stating she does not hold more than 1% of the company's issued shares or have significant relationships that could affect her independence[54]. - The nominee has no adverse records that would impact her integrity or qualifications for the independent director role[55]. - The nominee has not been subject to administrative penalties or criminal charges by the China Securities Regulatory Commission in the last 36 months[56]. - The nominee's concurrent positions as an independent director in domestic listed companies do not exceed three, ensuring compliance with regulations[56]. - The nominee commits to adhering to laws, regulations, and the rules of the Shanghai Stock Exchange during her tenure[57]. - The nominating party, Bank of China Limited, believes the nominee meets all legal and regulatory requirements for the independent director position[60]. - The nominee has confirmed her understanding of the responsibilities of an independent director and the consequences of false statements[55]. - The nominee will resign if any circumstances arise that affect her qualifications as an independent director[57]. Independent Director Nomination - General Compliance - The nominated individual has passed the qualification review by the Board of Directors and the Human Resources and Compensation Committee of China Bank[62]. - The nominated individual has no adverse records in the last 36 months, including administrative penalties or criminal charges by the China Securities Regulatory Commission[63]. - The nominated individual has not been publicly reprimanded by the stock exchange or received more than three critical notices in the last 36 months[63]. - The nominated individual does not hold positions in more than three domestic listed companies as an independent director[63]. - The nominated individual has not served as an independent director for more than six consecutive years at China Bank[63]. - The nominated individual has no close relationships that could affect independent performance[62]. - The nominated individual has confirmed compliance with the requirements of the Shanghai Stock Exchange's self-regulatory guidelines for independent directors[62]. - The nominated individual has not been involved in any significant business dealings with the company or its major shareholders[63]. - The nominated individual has not been dismissed from independent director positions due to absence from board meetings[63]. - The nominated individual has no circumstances that would affect their integrity or qualifications as an independent director[63].

Financial Performance - For Q1 2025, the operating income was RMB 164.91 billion, representing a year-on-year increase of 2.41%[5] - The net profit after tax for the same period was RMB 58.64 billion, showing a decrease of 2.22% compared to the previous year[5] - In Q1 2025, the group achieved a net profit of RMB 58.644 billion, a year-on-year decrease of 2.22%[15] - Total operating income reached RMB 164.911 billion, an increase of RMB 3.873 billion or 2.41% year-on-year[15] - The basic and diluted earnings per share were RMB 0.18, down from RMB 0.32 in the same period last year[5] - The weighted average return on equity (annualized) was 9.09%, a decrease of 0.77 percentage points compared to the previous year[5] - Net interest income was RMB 107.727 billion, down RMB 4.985 billion or 4.42% year-on-year, with a net interest margin of 1.29%[15] - Non-interest income totaled RMB 57.184 billion, up RMB 8.858 billion or 18.33% year-on-year, accounting for 34.68% of total operating income[15] Assets and Liabilities - The total assets as of March 31, 2025, amounted to RMB 35.99 trillion, an increase of 2.64% from the end of 2024[5] - Total assets amounted to RMB 35,987.147 billion, an increase of RMB 925.848 billion or 2.64% from the end of the previous year[16] - Customer loans and advances reached RMB 32,260.874 billion, up RMB 1,014.680 billion or 4.70% year-on-year[16] - Total liabilities increased to RMB 33,019.414 billion, a rise of RMB 911.079 billion or 2.84% from the end of the previous year[17] - Total liabilities increased to RMB 33,019,414 million as of March 31, 2025, up from RMB 32,108,335 million as of December 31, 2024[25] Shareholder Information - As of March 31, 2025, the total number of ordinary shareholders was 581,247, including 419,116 A-share shareholders and 162,131 H-share shareholders[9] - The top ten ordinary shareholders held a combined 64.13% of the shares, with the largest shareholder being Central Huijin Investment Ltd.[10] - The total number of preferred shareholders was 104, all of whom were domestic investors[12] - The total equity attributable to shareholders was RMB 2.83 trillion, reflecting a slight increase of 0.36% from the end of the previous year[5] - Total equity attributable to shareholders was RMB 2,967.733 billion, an increase of RMB 14.769 billion or 0.50%[18] Cash Flow and Dividends - The net cash flow from operating activities was a net outflow of RMB 40.46 billion, a significant decline from a net inflow of RMB 3.24 billion in the same period last year[7] - The net cash flow from operating activities for Q1 2025 was a negative RMB 40,463 million, compared to a positive RMB 3,240 million in Q1 2024[27] - The company announced a cash dividend of RMB 1.208 per 10 shares, totaling RMB 35.562 billion, and a second phase of overseas preferred stock dividends amounting to approximately USD 10.15 million[20][21] - Cash dividends paid to ordinary shareholders in Q1 2025 amounted to 35,562 thousand, marking a new distribution compared to no dividends in Q1 2024[29] Investment Activities - Cash flow from investment activities for Q1 2025 was a net outflow of 370,671 thousand, compared to a net outflow of 148,016 thousand in Q1 2024, indicating a significant increase in investment expenditures[29] - Cash paid for the purchase of financial investments in Q1 2025 was 1,600,188 thousand, compared to 1,368,275 thousand in Q1 2024, reflecting increased investment activity[29] - Cash paid for the acquisition of fixed assets in Q1 2025 was 5,122 thousand, significantly higher than 2,526 thousand in Q1 2024, suggesting expansion in capital expenditures[29] Customer Deposits and Loans - The company reported a significant increase in customer deposits, with a net increase of RMB 1,412,785 million in Q1 2025 compared to RMB 1,208,403 million in Q1 2024[27] - Customer loans and advances net amount reached RMB 22,052,439 million as of March 31, 2025, an increase from RMB 21,055,282 million as of December 31, 2024[24] Other Financial Metrics - The non-performing loan ratio remained stable at 1.25%, with a provision coverage ratio of 197.97%, down 2.63 percentage points from the end of the previous year[18] - Other comprehensive income for Q1 2025 was a negative RMB 23,648 million, contrasting with a positive RMB 8,602 million in Q1 2024[23] - Interest income received in Q1 2025 was 205,639 thousand, down from 224,791 thousand in Q1 2024, indicating a decline in interest earnings[29] - Interest paid in Q1 2025 was 137,416 thousand, down from 150,442 thousand in Q1 2024, indicating improved interest expense management[29] - The cash balance at the end of Q1 2025 was 1,803,874 thousand, a decrease from 2,416,045 thousand at the end of Q1 2024, showing a reduction in liquidity[29] - The net decrease in cash and cash equivalents for Q1 2025 was 565,055 thousand, compared to a decrease of 100,680 thousand in Q1 2024, highlighting increased cash outflows[29]

Financial Reports and Approvals - The Board of Directors approved the 2024 Annual Report, which includes the financial statements, with a unanimous vote of 14 in favor[4] - The 2024 profit distribution plan was also approved unanimously, ensuring compliance with legal regulations and the company's articles of association[6] - The internal control evaluation report for 2024 was passed, reflecting the actual state of internal controls within the bank[7] - The 2024 third pillar information disclosure report was approved, ensuring transparency in financial reporting[5] - The 2024 related party transaction management report was also approved, confirming adherence to legal and regulatory requirements[9] Social Responsibility and Governance - The 2024 annual social responsibility report was approved, focusing on environmental, social, and governance aspects[10] Auditing and External Oversight - The Board approved the reappointment of Ernst & Young as external auditors for the year 2025, confirming their capability to provide auditing services[11] Market Value and Management - The bank's market value management measures for 2025 were approved, aimed at enhancing valuation and efficiency[12] Executive Appointments - The nomination of Liu Jin as an executive director was approved, with his qualifications and nomination process deemed compliant with regulations[13] Shareholder Meetings - The first extraordinary general meeting of shareholders for 2025 will address the financial resolution for 2024 and other key proposals[15]

Brand and Recognition - Bank of China ranked 4th in the Global Banking 1000 list by The Banker[6] - The bank's brand value is ranked 4th in the Global Banking Brand Value 500 by Brand Finance[6] - The bank has been recognized as the best bank in China and the best ESG bank by Euromoney[6] - The bank has received the AAA Financial Technology Award for Best Cloud Application Project[6] Global Operations and Strategy - Bank of China is the only official banking partner for both the 2008 Beijing Summer Olympics and the 2022 Beijing Winter Olympics[3] - The bank operates in 64 countries and regions, providing a comprehensive financial service system[4] - The bank aims to enhance its global layout capabilities and focus on technology finance, green finance, inclusive finance, pension finance, and digital finance[5] - The bank has been selected as a global systemically important bank for 14 consecutive years[3] Financial Performance - The company reported a total operating income of RMB 632,771 million for 2024, showing a growth compared to previous years[16] - Basic earnings per share for 2024 were RMB 1.216, with a total cash dividend of RMB 2.424 per 10 shares for the year[12] - The net interest margin for 2024 was 0.74%, indicating a slight increase from the previous year[16] - The non-performing loan ratio stood at 1.59% for 2024, reflecting a stable credit quality[16] - The company achieved a return on average total assets of 1.46% in 2024, maintaining a strong performance[16] - The cost-to-income ratio was reported at 28.77% for 2024, demonstrating effective cost management[16] - The coverage ratio for non-performing loan provisions was 177.84% in 2024, indicating a robust risk management strategy[16] Risk Management and Integrity - The bank's financial report indicates a commitment to high-quality development and risk prevention[5] - There were no significant non-operational fund occupations by controlling shareholders during the reporting period, ensuring financial integrity[13] - The company is actively managing various risks, including credit risk and market price fluctuations, to safeguard its operations[14] Income and Expenses - Net interest income for 2022 was RMB 448,934 million, a decrease of 3.3% from RMB 466,545 million in 2021[18] - Non-interest income increased to RMB 183,837 million in 2022, up 16.6% from RMB 157,593 million in 2021[18] - Total operating income reached RMB 632,771 million, a slight increase of 1.0% compared to RMB 624,138 million in 2021[18] - Operating expenses rose to RMB 235,770 million, an increase of 5.8% from RMB 222,933 million in 2021[18] Asset and Loan Growth - Total assets at the end of 2022 were RMB 35,061,299 million, up 8.0% from RMB 32,432,166 million in 2021[18] - Customer loans and advances totaled RMB 21,594,068 million, an increase of 8.2% from RMB 19,961,779 million in 2021[18] - The non-performing loan ratio remained stable at 1.25% in 2022, unchanged from 2021[18] - Basic earnings per share for 2022 were RMB 0.75, up from RMB 0.74 in 2021[18] - The core tier 1 capital adequacy ratio improved to 12.20% in 2022, compared to 11.63% in 2021[18] Market Presence and Technology Investment - The company plans to continue expanding its market presence and investing in new technologies to enhance service offerings[14] - The group achieved a net profit of RMB 252.72 billion in 2024, an increase of RMB 6.35 billion, or 2.58% year-on-year[38] - The total assets of the Chinese banking industry reached RMB 444.6 trillion by the end of 2024, growing by 6.5% compared to the previous year[37] - The group reported a net interest income of RMB 448.93 billion in 2024, a decrease of RMB 17.61 billion, or 3.77% year-on-year[39] Digital Transformation and Innovation - The group plans to focus on high-quality development and accelerate digital transformation by 2025[34] - The group completed a 96% transformation rate for low-efficiency branches[34] - The group added over 900 new application scenarios for artificial intelligence and other new technologies[34] - The bank's digital financial services are continuously enhanced, with a focus on data governance and integration to support precise marketing and risk control[106] Green Finance Initiatives - The domestic green credit balance reached RMB 4,070.752 billion, an increase of 31.03% compared to the end of the previous year[99] - The bank issued USD 700 million in offshore green financial bonds and RMB 10 billion in domestic non-capital green bonds, leading the domestic market in green bond underwriting with a total of RMB 261.837 billion[99] - The bank's green financial product management scale reached RMB 76.524 billion, while the management scale of green and ESG public funds was approximately RMB 3.515 billion[102] - The bank's green bond underwriting amounted to RMB 45.874 billion, showcasing its leadership in the green bond market[102] Inclusive Finance and Social Responsibility - The balance of inclusive small and micro enterprise loans reached CNY 2,279.66 billion by the end of 2024, an increase of 29.63% year-on-year, exceeding the average growth rate of all loans in the bank[105] - The average interest rate for newly issued inclusive small and micro enterprise loans was 3.24%, actively benefiting the real economy[105] - Agricultural loan balance reached CNY 2.50 trillion, increasing by CNY 501.13 billion compared to the end of the previous year[105] - The bank provided special loans exceeding CNY 370 billion to stabilize and expand employment for over 67,100 enterprises[105] Customer Engagement and Service Enhancement - The bank's mobile banking registered customers reached 293 million, a year-on-year increase of 6.90%[31] - The number of active personal mobile banking users increased to 97.9315 million, reflecting an 11.59% year-on-year growth[108] - The bank's online personal mobile banking services have been upgraded, significantly improving customer experience[148] - The bank's "Wealth Night Market" service extends transaction hours to midnight, enhancing customer service efficiency[125] International Expansion and Cross-Border Services - The bank has established cross-border RMB interbank accounts for 1,540 institutions across 114 countries and regions, maintaining a leading position in the domestic industry[114] - The bank processed cross-border RMB clearing of 13.1383 trillion yuan in 2024, representing a year-on-year growth of 40.05%[152] - The bank actively supported high-level opening up and quality development of the "Belt and Road" initiative, enhancing international market influence[142] - The overseas personal financial services cover over 30 countries and regions, serving more than 7.5 million customers as of the end of 2024[147] Financial Services and Product Development - The bank's corporate finance business is steadily growing, with a focus on comprehensive financial service solutions for blue-chip and quality SMEs in Hong Kong[168] - The bank has signed strategic cooperation agreements with sovereign institutions and international multilateral financial institutions, enhancing its global partnerships[114] - The bank's credit card issuance reached 147.94 million cards by the end of 2024, with a credit card loan balance of CNY 593.4 billion, reflecting a year-on-year growth of 2.66% and 7.62% respectively[131] - The bank's self-service currency exchange machines increased by 71.70% compared to the previous year, maintaining market leadership[129] Asset Management and Investment Performance - The asset management scale of BOC Wealth Management reached 18.8 trillion yuan by the end of 2024[182] - The group’s custodial asset scale surpassed CNY 20 trillion by the end of 2024, with the growth rate ranking first among major peers[138] - BOC Fund launched 10 new funds during the year, including ESG-themed and index funds, enhancing its product portfolio[181] - Bank of China Group Investment issued CNY 4.5 billion in Panda bonds during the year, enhancing its diversified funding channels[190]

Financial Performance - Bank of China reported audited financial results for the year ending December 31, 2024[4]. - The bank reported a total operating income of RMB 632,771 million for 2024, showing a growth compared to previous years[18]. - Basic earnings per share for 2024 were RMB 1.216, reflecting a consistent dividend policy with a total cash dividend of RMB 2.424 per 10 shares for the year[14]. - The net interest margin for 2024 was recorded at 1.75%, indicating a slight decrease from previous years[18]. - The non-performing loan ratio stood at 1.40% for 2024, demonstrating effective risk management strategies[18]. - The bank achieved a return on average total assets of 1.32% in 2024, maintaining a stable performance[18]. - The cost-to-income ratio was reported at 28.77% for 2024, reflecting operational efficiency[18]. - The bank's provision coverage ratio for non-performing loans was 177.84%, indicating strong risk mitigation measures[18]. - The group achieved a net profit of RMB 252.72 billion in 2024, an increase of RMB 6.35 billion, representing a growth of 2.58% year-on-year[40]. - The group's net interest income for 2024 was RMB 448.93 billion, a decrease of RMB 17.61 billion, or 3.77% year-on-year[41]. - The group's non-interest income increased by 16.65% year-on-year, reaching RMB 183.84 billion in 2024[41]. - The group's operating income for 2024 was RMB 632.77 billion, reflecting a slight increase of 1.38% from the previous year[41]. - The group's net profit before tax for 2024 was RMB 294.95 billion, slightly down from RMB 295.61 billion in 2023, indicating a decrease of 0.22%[88]. Awards and Recognition - The bank has received multiple awards, including the Best Bank in China and the Best ESG Bank by Euromoney[8]. - Bank of China has been recognized as a global systemically important bank for 14 consecutive years, reflecting its international competitiveness[5]. - The bank's commitment to social responsibility is highlighted through various awards and recognitions for its contributions to society[8]. - The bank has been recognized with multiple awards for its contributions to the bond market and risk management capabilities in 2024[138]. Strategic Focus and Initiatives - The bank aims to enhance its global layout capabilities and focus on technology finance, green finance, inclusive finance, pension finance, and digital finance[5]. - The bank plans to continue expanding its market presence and enhancing its product offerings in the coming years[16]. - The bank's management discussion and analysis section provides insights into its financial performance and strategic direction for future growth[9]. - The bank plans to enhance its digital transformation and improve the efficiency of its financial services[36]. - The bank aims to provide personal pension account management services to over 10 million customers by the end of 2024, with a focus on comprehensive pension solutions[126]. Risk Management - The bank emphasizes risk control and aims to support the real economy while adhering to the new development philosophy[7]. - The bank has faced risks from macroeconomic conditions and is actively managing various operational risks[16]. - The bank's risk management framework was enhanced, with a focus on early identification and response to risks, maintaining stable asset quality[35]. Customer and Market Engagement - The bank's mobile banking registered customers reached 293 million, a year-on-year increase of 6.90%[33]. - The bank's personal financial business achieved operating income of ¥232.10 billion in 2024, with the total number of personal customers reaching nearly 540 million, a growth of 2.75% year-on-year[125]. - The bank's digital financial services are continuously enhanced, with a focus on data governance and integration to support precise marketing and risk control[108]. - The bank's cross-border e-commerce settlement scale grew by approximately 40% year-on-year, reflecting its strong market position[118]. Green Finance and Social Responsibility - The bank's domestic green credit balance reached RMB 4,070.75 billion, an increase of 31.03% compared to the end of the previous year[101]. - The bank issued USD 700 million in offshore green financial bonds and RMB 10 billion in domestic non-capital green bonds, leading the domestic market in green bond underwriting with a total of RMB 261.84 billion[101]. - The bank participated in poverty alleviation and education assistance, issuing over 370 billion yuan in special loans across 177,000 cases in 2024[34]. - The bank's green bond investment scale exceeded RMB 100 billion, ranking first among investors in green debt financing tools in China[101]. International Operations - The bank has established 543 overseas branches covering 64 countries and regions, including 45 "Belt and Road" co-construction countries[142]. - The overseas personal financial services cover over 30 countries and regions, serving more than 7.5 million customers as of the end of 2024[149]. - The bank's loans to over 40,000 "specialized, refined, and innovative" SMEs exceeded ¥600 billion, supporting technological innovation and new production capacity[121]. - The bank's international settlement volume of domestic institutions exceeded USD 4 trillion, with a growth rate exceeding 20%[28]. Digital Transformation - The bank's digital transformation initiatives, including the "BOC Digital Letter" and "BOC Cross-Border Remittance Express," have significantly improved customer experience and processing times[119]. - The bank launched a digital version of the EMV card to meet the online cross-border transaction needs of students studying abroad[150]. - The upgraded overseas personal mobile banking service has significantly improved customer experience with a comprehensive redesign[150]. - The bank's "Hui Ru Yuan" APP won the "Innovation Achievement Award" at the 6th China Digital Inclusive Finance Conference, showcasing its commitment to enhancing service quality[121].

Investment Rating - The report assigns a rating of "Accumulate" to the company with a target price of 4.43 HKD, representing a potential upside of 12.7% from the current price of 3.79 HKD [5][11]. Core Insights - The company has shown strong growth in non-interest income, with a year-on-year increase of 21.32%, while net interest income decreased by 4.81% due to a slight reduction in net interest margin [3][11]. - The total assets of the company reached 340,690 billion RMB, reflecting a 5.05% increase from the previous year, indicating steady growth in the asset-liability scale [4]. - The company maintains a solid provision coverage ratio of 198.86%, which has improved by 7.20 percentage points compared to the previous year, demonstrating effective management of non-performing loans [4][11]. Financial Performance Summary - For the first three quarters of 2024, the company reported operating income of 479.1 billion RMB, a year-on-year increase of 1.74%, and a net profit attributable to shareholders of 175.8 billion RMB, up by 0.52% [2]. - The net interest income for the same period was 336 billion RMB, down 4.81%, while non-interest income was 143.1 billion RMB, up 21.32% [3]. - The company’s basic earnings per share (EPS) for the first three quarters of 2024 was 0.55 RMB [2]. Asset and Liability Management - As of September 2024, total liabilities amounted to 311,950 billion RMB, an increase of 5.12% from the end of the previous year, with customer deposits totaling 237,106 billion RMB, up 3.51% [4]. - The loan balance reached 214,359 billion RMB, reflecting a growth of 7.38% year-on-year, with corporate loans accounting for 145,965 billion RMB and personal loans for 67,833 billion RMB [4]. Valuation Metrics - The report forecasts the company's EPS for 2024, 2025, and 2026 to be 0.75, 0.77, and 0.80 RMB respectively, with corresponding price-to-book (P/B) ratios of 0.44, 0.41, and 0.38 [11][26]. - The company has a dividend yield of 6.84%, indicating a strong dividend-paying capability [11].

Board Approval and Meetings - The Board of Directors approved the Q3 2024 report with unanimous support (13 votes in favor) and no opposition or abstentions[1] - The meeting was attended by 12 out of 13 directors, with one independent non-executive director voting by proxy due to other commitments[1] - The Board's Audit Committee has approved the Q3 2024 report prior to submission to the Board[1] - The Board will convene the third extraordinary general meeting of 2024 to discuss the compensation plans for the Chairman and Executive Directors[7] Compensation Plans - The compensation distribution plan for the Chairman and Executive Directors for 2023 has been reviewed and will be submitted for shareholder approval[4][6] - The Chairman's 2023 salary is set at RMB 6.812 million, while the Executive Director's salary is RMB 8.123 million[9] - The compensation for other senior management personnel has also been approved and will be presented at the upcoming shareholder meeting[7] - The total pre-tax compensation for directors, supervisors, and senior management in 2023 amounted to RMB 18.0592 million[13] - The company’s compensation structure adheres to national regulations regarding the remuneration of senior management[14] - The company’s board and compensation committee have reviewed the 2023 compensation details for directors and senior management[16] Transparency and Reporting - The Q3 2024 report and the third pillar information disclosure report are available on the Hong Kong Stock Exchange and the Bank of China's websites[2][3] - The Bank of China is committed to transparency by publishing detailed reports on its official platforms[2][3] Salaries and Performance-Based Compensation - Liu Jin, the Vice Chairman and President, received a salary of RMB 90.83 million for the period from June 2021 to August 2024[12] - The independent director, E Wei Nan, has a salary of RMB 35 million from July 2022 to July 2024[13] - The risk director, Liu Jian Dong, earned a salary of RMB 172.17 million, with additional performance-based income of RMB 2 million[13] - Zhang Yi, the Executive Director and Vice President, is set to receive RMB 68.06 million from April 2024 to May 2024[12] - The company has implemented a deferred payment system for over 50% of performance-based salaries for key management positions, with a deferral period of no less than three years[15] - Non-executive directors did not receive any compensation from the company in 2023[15] - The total pre-tax compensation for the risk director and other key positions includes significant performance-based components[15] Compliance and Oversight - The independent non-executive directors expressed that the compensation plans comply with legal regulations and do not harm the interests of the bank or shareholders[5][7]

Financial Performance - Operating income for Q3 2024 reached RMB 161,176 million, representing a year-on-year increase of 6.58%[2] - Net profit after tax for Q3 2024 was RMB 60,953 million, up 3.64% compared to the same period last year[2] - The group achieved a net profit of RMB 187.49 billion for the first three quarters of 2024, representing a year-on-year growth of 0.53%[10] - The net profit attributable to shareholders for Q3 2024 was RMB 57,162 million, an increase of 2.3% from RMB 54,763 million in Q3 2023[16] - The total comprehensive income for Q3 2024 was RMB 67,283 million, compared to RMB 52,711 million in Q3 2023, reflecting a growth of 27.7%[17] Cash Flow and Investments - The net cash flow from operating activities for the first nine months of 2024 was RMB 168,139 million, a significant decrease of 65.41% year-on-year[3] - Operating cash flow for the first nine months of 2024 was RMB 225,360 million, a decrease of 58.0% compared to RMB 536,577 million in the same period of 2023[21] - Net cash flow from investing activities was RMB (816,714) million, compared to RMB (278,812) million in the first nine months of 2023, indicating a significant increase in cash outflow[22] - Cash flow from financing activities showed a net inflow of RMB 125,006 million, a turnaround from a net outflow of RMB (24,791) million in the same period last year[22] Assets and Liabilities - Total assets as of September 30, 2024, amounted to RMB 34,068,988 million, reflecting a 5.05% increase from the end of 2023[2] - The total liabilities as of September 30, 2024, were RMB 31,195,005 million, compared to RMB 29,675,351 million at the end of 2023[19] - Customer deposits totaled RMB 42,371.06 billion, up RMB 803.58 billion, or 3.51%, from the end of the previous year[12] - Customer loans amounted to RMB 42,143.59 billion, an increase of RMB 1,474.15 billion, or 7.38%[12] Shareholder Information - The total number of ordinary shareholders as of September 30, 2024, was 595,281, including 429,899 A-share shareholders and 165,382 H-share shareholders[5] - The largest shareholder, Central Huijin Investment Ltd., held 64.13% of the ordinary shares[5] - The first ten shareholders accounted for a significant portion of the total shares, with the top three holding a combined 94.61%[5] - As of September 30, 2024, the total number of preferred shareholders is 98, with the top ten shareholders holding a combined 58.57% of the preferred shares[8] Income and Expenses - Net interest income decreased by RMB 16.98 billion, down 4.81%, while non-interest income increased by RMB 25.15 billion, up 21.32%[11] - Net interest income for Q3 2024 was RMB 109,237 million, a decrease of 7.4% from RMB 118,980 million in Q3 2023[16] - The company received interest income of RMB 672,390 million, an increase from RMB 651,082 million in the previous year[22] - The company paid interest expenses totaling RMB (383,260) million, compared to RMB (348,700) million in the same period of 2023[22] Capital Adequacy and Risk - The core Tier 1 capital adequacy ratio is 12.23%, and the total capital adequacy ratio is 19.01%[10] - The non-performing loan ratio is 1.26%, a decrease of 0.01 percentage points from the end of the previous year[12] Other Financial Metrics - The weighted average return on net assets for Q3 2024 was 9.45%, down 0.37 percentage points year-on-year[2] - The basic and diluted earnings per share for the first nine months of 2024 remained at RMB 0.55, unchanged from the same period in 2023[16] - The company declared a cash dividend of RMB 2.364 per 10 shares for ordinary shares, totaling RMB 69.593 billion[14] - The company reported a decrease in credit impairment losses for the first nine months of 2024, totaling RMB 85,734 million, down from RMB 91,069 million in the same period of 2023[16] - The company disposed of fixed assets and received cash of RMB 10,489 million, significantly higher than RMB 2,942 million in the same period last year[22] - The company issued bonds and received cash of RMB 1,030,346 million, up from RMB 813,314 million in the previous year[22]

Dividends and Shareholder Returns - The board proposed a cash dividend of RMB 1.208 per 10 shares for the 2024 interim period, subject to shareholder approval[7]. - The total cash dividend for the 2023 fiscal year was approximately RMB 69.593 billion, distributed at RMB 2.364 per 10 shares[6]. - The group issued cash dividends of RMB 695.93 billion for the fiscal year 2023, as approved by the shareholders' meeting[59]. Financial Performance - Net interest income for the first half of 2024 was RMB 226,760 million, a decrease of 3.5% compared to RMB 233,992 million in the same period of 2023[13]. - Non-interest income increased to RMB 91,169 million, up 6.4% from RMB 85,715 million year-on-year[13]. - Total operating income for the first half of 2024 was RMB 317,929 million, a slight decrease of 0.2% from RMB 319,707 million in the first half of 2023[13]. - The net profit attributable to shareholders for the first half of 2024 was RMB 118,601 million, down 1.2% from RMB 120,095 million in the same period of 2023[13]. - The group achieved operating income of CNY 317.929 billion and a net profit after tax of CNY 126.536 billion in the first half of 2024[17]. - The group achieved a net profit of RMB 126.54 billion in the first half of 2024, a decrease of 0.90% year-on-year[27]. Assets and Liabilities - Total assets as of June 30, 2024, reached RMB 33,907,267 million, an increase of 4.5% from RMB 32,432,166 million at the end of 2023[13]. - Customer loans totaled RMB 21,142,830 million, up 5.9% from RMB 19,961,779 million at the end of 2023[13]. - Customer deposits increased to RMB 23,630,706 million, a rise of 3.2% from RMB 22,907,050 million at the end of 2023[13]. - Total liabilities reached CNY 31,128.29 billion, an increase of CNY 1,452.94 billion or 4.90% from the end of the previous year[45]. - The group's total equity amounted to RMB 27,789.76 billion, reflecting an increase of RMB 221.61 billion or 0.80% compared to the end of the previous year[59]. Risk Management - The company is actively managing various risks, including credit risk from borrowers and market price fluctuations, while ensuring compliance with regulatory requirements[8]. - The company emphasizes the importance of risk awareness regarding macroeconomic conditions and geopolitical changes affecting its operations[8]. - The non-performing loan ratio remained stable at 1.24% as of June 30, 2024, unchanged from the end of 2023[13]. - The non-performing loan coverage ratio was 201.69% as of June 30, 2024, demonstrating strong risk management capabilities[21]. - The company is focusing on risk management by establishing a comprehensive risk management framework and enhancing proactive risk identification and response capabilities[153]. Capital Adequacy - The core tier 1 capital adequacy ratio improved to 12.03% from 11.63% at the end of 2023[13]. - The capital adequacy ratio stood at 18.91%, indicating a solid capital position[21]. - As of June 30, 2024, the capital adequacy ratio of the group was 18.91%, maintaining a stable and reasonable level, in line with the group's "14th Five-Year Plan" goals[192]. - The total capital adequacy ratio rose to 18.91% from 17.74% during the same period[193]. Green Finance Initiatives - The balance of green credit increased by 39.77% year-on-year, reflecting the company's commitment to sustainable finance[18]. - The company ranked first among Chinese banks in underwriting domestic green bond issuance, with a scale of 98.37 billion yuan in the first half of the year[72]. - The company launched the first natural benefit commercial ESG-linked loan in the country during the first half of the year[73]. - The company established 389 green finance specialty outlets to enhance competitiveness in green finance[75]. Digital Transformation and Innovation - The bank is advancing its digital transformation strategy, enhancing mobile banking functionalities to improve customer online payment experiences[126]. - The company is fostering a strong innovation atmosphere by promoting new technology applications and conducting competitions for innovative solutions[151]. - The bank is enhancing its digital transformation by integrating data-driven, intelligent, and ecological approaches into product design and service operations, aiming for seamless online service delivery[127]. International Presence and Cross-Border Services - The bank has established 546 overseas branches covering 64 countries and regions, including 44 countries involved in the Belt and Road Initiative[113]. - The bank actively promoted the internationalization of the RMB, hosting various events to support its development in Latin America and other regions[88]. - The bank's overseas institutions have seen stable growth in international settlement and cross-border RMB settlement businesses[116]. Customer and Market Development - The bank's total individual customer base in mainland China surpassed 531 million, marking a 1.19% increase from the end of the previous year[92]. - The number of clients for inclusive small and micro enterprise loans exceeded 1.3 million, with a loan balance of 2.09 trillion yuan, an increase of 18.94% compared to the end of the previous year[76]. - The bank's wealth management business has partnered with 17 asset management companies, maintaining a leading position in the industry[94]. Compliance and Internal Control - The company is enhancing its internal control and risk management mechanisms, focusing on compliance culture and continuous improvement of internal control systems[186]. - The company has established a three-line defense system for internal control, with business departments as the first line of defense[185]. - The bank has implemented a comprehensive liquidity risk management strategy, enhancing the forward-looking and scientific nature of liquidity risk management[178].

Dividends and Profit Distribution - The company declared a cash dividend of RMB 2.364 per 10 shares for the fiscal year 2023, totaling approximately RMB 69.593 billion before tax[6]. - The board proposed an interim dividend of RMB 1.208 per 10 shares for the fiscal year 2024, subject to shareholder approval[6]. - The company approved a profit distribution plan for 2023, allocating approximately RMB 20.824 billion to statutory surplus reserves and RMB 40.468 billion to general reserves, with a cash dividend of RMB 2.364 per 10 shares for ordinary shareholders, totaling about RMB 69.593 billion before tax[185]. - The board proposed a mid-term cash dividend of RMB 1.208 per 10 shares for 2024, pending shareholder approval, with expected payment dates for A-shares on January 23, 2025, and H-shares on February 19, 2025[185]. - The company approved a total dividend of approximately USD 10.15 million for the second phase of overseas preferred shares, with a dividend rate of 3.60% after tax, to be paid on March 4, 2024[185]. - The third phase of domestic preferred shares will have a total dividend of RMB 3.285 billion before tax, with a dividend rate of 4.50%, to be paid on June 27, 2024, and the fourth phase will have a total dividend of RMB 1.1745 billion before tax, with a dividend rate of 4.35%, to be paid on August 29, 2024[185]. Financial Performance - Net interest income for the first half of 2024 was RMB 226,760 million, a decrease of 3.5% compared to RMB 233,992 million in the same period of 2023[9]. - Total operating income for the first half of 2024 was RMB 317,929 million, slightly down from RMB 319,707 million in the first half of 2023[9]. - The bank's net profit attributable to shareholders for the first half of 2024 was RMB 118,601 million, compared to RMB 120,095 million in the same period of 2023, reflecting a decrease of 1.2%[9]. - The group achieved operating income of CNY 317.929 billion and net profit after tax of CNY 126.536 billion in the first half of the year[13]. - In the first half of 2024, the group achieved a net profit of RMB 126.54 billion, a decrease of 0.90% year-on-year[20]. - The group's total revenue for the first half of 2024 was RMB 317,929 million, slightly down from RMB 319,707 million in the same period of 2023[46]. Asset and Loan Management - The total assets of the bank reached RMB 33,907,267 million as of June 30, 2024, an increase of 4.5% from RMB 32,432,166 million at the end of 2023[9]. - Customer loans totaled RMB 21,142,830 million, up 5.9% from RMB 19,961,779 million at the end of 2023[9]. - The non-performing loan ratio remained stable at 1.24% as of June 30, 2024, unchanged from the end of 2023[9]. - The bank's core tier 1 capital adequacy ratio improved to 12.03% as of June 30, 2024, compared to 11.63% at the end of 2023[9]. - The total amount of loans in mainland China (RMB) was RMB 11,717.93 billion, representing 55.42% of total loans, up from 53.38% at the end of 2023[36]. - The total loan amount reached RMB 21,088,978 million, with a non-performing loan amount of RMB 261,267 million, resulting in a non-performing loan ratio of 1.24%[119]. Risk Management - The company is actively managing various risks, including credit risk from borrowers and market price fluctuations, while ensuring compliance with regulatory requirements[6]. - The company faced risks from macroeconomic conditions and political-economic changes in different countries and regions[6]. - The non-performing loan coverage ratio stood at 201.69%, demonstrating strong risk management capabilities[17]. - The company is focusing on optimizing credit structure and enhancing credit risk management policies to improve asset quality and risk management effectiveness[114]. - The company has established a comprehensive credit risk management system to enhance the identification, warning, exposure, and resolution of potential risks[114]. - The bank has established a comprehensive liquidity risk management system to ensure timely liquidity needs are met at reasonable costs[126]. Digital Transformation and Innovation - The number of active users of the personal mobile banking app grew by 9.98% year-on-year, showcasing the success of digital financial services[14]. - The bank's digital transformation in transaction banking has led to the launch of a new generation of bill pool systems, enhancing service capabilities[65]. - The bank has implemented 39 technology strategic projects, achieving significant progress in technology infrastructure and enhancing cybersecurity measures, with no major incidents reported in the first half of the year[111]. - The bank's online banking services have been upgraded with new features, including T+1/T+2 foreign exchange settlement and various financial management tools[108]. - The bank is enhancing its digital financial services by leveraging big data and AI technologies to improve operational efficiency and customer experience[57]. Corporate Governance - The company continues to enhance corporate governance mechanisms, aligning with capital market regulations and industry standards[176]. - The company emphasizes the protection of shareholders' rights to information, participation, and decision-making[177]. - The company has implemented a comprehensive review of its governance system, including articles of association and authorization systems[176]. - The company’s external supervisors actively participated in all supervisory board meetings and contributed to improving corporate governance and management levels[181]. - The bank's board includes a chairman and several non-executive and independent directors, ensuring diverse governance[168]. Sustainable Finance and Green Initiatives - The balance of green credit increased by 39.77% year-on-year, reflecting the company's commitment to sustainable finance[14]. - The company ranked first among Chinese banks in underwriting domestic green bond issuance, with a total of 98.37 billion yuan in the first half of the year[52]. - The bank has developed a green finance policy system to support national carbon neutrality goals, with specific measures for various sectors[143]. - The domestic green credit balance showed a year-on-year growth of 39.77%[146]. - The bank has not provided financing for new coal mining and coal power projects outside of China since Q4 2021, with no new financing for such projects as of June 2024[146]. Shareholder Information - As of June 30, 2024, the total number of ordinary shares is 294,387,791,241, consisting of 210,765,514,846 A-shares (71.59%) and 83,622,276,395 H-shares (28.41%)[156]. - The largest shareholder, Central Huijin Investment Ltd., holds 188,791,906,533 A-shares, representing 64.13% of the total A-shares issued[163]. - The top ten ordinary shareholders hold a significant portion of the shares, with the largest three shareholders collectively owning 90.43% of the total A-shares issued[163]. - The company is actively monitoring shareholder activities and potential increases in shareholdings by major stakeholders[162]. - The company has a total of 190,601,931,033 shares held by Central Huijin Investment Ltd., including controlled entities, representing 64.74% of the total ordinary shares issued[163]. Compliance and Legal Matters - The company did not engage in any significant asset acquisitions or disposals during the reporting period[187]. - There were no major related party transactions reported during the period[188]. - The company has not faced any significant legal disputes or arbitration matters that would materially impact its financial condition or operating results[187]. - The company has disclosed other significant matters as required by regulatory authorities on its official websites[198].