BANK OF CHINA(601988) 光大证券·2025-05-01 11:32Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Insights - The company reported a revenue of 164.9 billion, a year-on-year increase of 2.6%, while the net profit attributable to shareholders was 54.4 billion, a decrease of 2.9% [4] - The weighted average return on equity (ROE) was 9.09%, down 0.77 percentage points year-on-year [4] - Non-interest income accounted for 34.7% of total revenue, an increase of 5.9 percentage points compared to the previous year [5] Revenue Performance - In Q1 2025, the revenue growth rate improved by 1.4 percentage points compared to the previous year, with non-interest income contributing positively [5] - The year-on-year growth rates for net interest income and non-interest income were -4.4% and 18.9%, respectively [5] - The main contributors to revenue growth were scale expansion and non-interest income, contributing 13.8 and 14.6 percentage points to performance growth [5] Asset and Loan Growth - As of the end of Q1 2025, interest-earning assets and loans grew by 7.3% and 8.3% year-on-year, respectively [6] - The loan-to-interest-earning asset ratio increased by 1.1 percentage points to 65% [6] - The company focused on key areas for credit support, with significant growth in loans for technology finance, small and micro enterprises, and green credit [6] Liability and Deposit Growth - Interest-bearing liabilities and deposits grew by 6.9% and 6.1% year-on-year, respectively [7] - The proportion of deposits in interest-bearing liabilities increased by 1.9 percentage points to 79.9% [7] Net Interest Margin - The net interest margin for Q1 2025 was 1.29%, down 11 basis points from 2024, but the decline was less than the previous year [8] - The yield on interest-earning assets decreased to 2.96%, primarily due to LPR adjustments and the rolling repricing of existing loans [8] Non-Interest Income - Non-interest income grew by 18.9% year-on-year, with net fee and commission income increasing by 2.1% to 25.65 billion [9] - The significant growth in foreign exchange net income and other business income contributed to the overall increase in non-interest income [9] Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.25% as of the end of Q1 2025 [10] - The provision coverage ratio was 198%, indicating a reasonable and sufficient risk buffer [10] Capital Adequacy - The capital adequacy ratio decreased to 17.98% as of the end of Q1 2025, with core tier 1 capital ratio at 11.82% [10] - The company is expected to enhance its capital base following a planned 165 billion capital increase [10] Earnings Forecast and Valuation - The earnings per share (EPS) forecast for 2025-2027 has been adjusted to 0.76, 0.79, and 0.81 yuan, respectively [11] - The current stock price corresponds to a price-to-book (PB) ratio of 0.68, 0.63, and 0.59 for the respective years [11]