Financial Data and Key Indicators Changes - The group achieved operating income of RMB 1.26 trillion, a year-on-year increase of 3.61%, with net fee income growing by 9.17% year on year [7] - Post-tax profit reached RMB 126.1 billion, with post-tax profit attributable to the bank's shareholders at RMB 117.6 billion, remaining stable year on year [7] - The NIM stood at 1.26%, ROA was 0.7%, and ROE was 9.11% [7] - Total assets reached RMB 36.79 trillion, an increase of 4.93% from the end of last year [8] - Total liabilities amounted to RMB 33.66 trillion, an increase of 4.85% from the end of last year [8] - The NPL ratio was 1.24, down by 0.01 percentage points from the end of last year, with an NPL coverage ratio of 197.39% [10][11] Business Line Data and Key Indicators Changes - The number of medium-sized corporate credit customers increased by 13.48% from the end of last year, and the proportion of mid-high-end individual customers rose by 0.16 percentage points [9] - Loans directed to the manufacturing sector grew by 12.99% from the end of last year, and loans to strategic emerging industries increased by 22.92% [13] - Personal consumption loans grew by 15.42%, and loans to private enterprises increased by 12.93% from the end of last year [14] Market Data and Key Indicators Changes - The volume of international settlement handled by domestic institutions exceeded $2.1 trillion, up 16.5% year on year [17] - The total transaction volume of cross-border e-commerce increased by 42.1% year on year [18] - The number of direct and indirect participants in the cross-border interbank payment systems remained the highest among peers [18] Company Strategy and Development Direction and Industry Competition - The company aims to optimize financial supply and improve its diverse product and service system while supporting domestic demand expansion and investment stabilization [23][24] - The focus will be on enhancing global layout capabilities and international competitiveness, particularly in Belt and Road cooperation [24][25] - The company plans to strengthen asset quality management and enhance forward-looking control of market risk [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a low-interest environment and emphasized the need to improve asset and liability structure while expanding non-interest income [39][41] - The company is confident in maintaining high-quality and stable development of assets in 2025, despite pressures from the real estate market and retail business [78] - Management highlighted the importance of leveraging global advantages to offset risks from the external environment [40][72] Other Important Information - The company completed the replenishment of RMB 165 billion in core Tier one capital, laying a solid foundation for medium to long-term development [11][12] - The interim dividend for 2025 was proposed at RMB 1.094 per 10 shares, totaling RMB 35.25 billion, maintaining a payout ratio of 30% [12] Q&A Session All Questions and Answers Question: How does the management evaluate performance in the first half of the year? - Management highlighted steady financial benefits, growth in assets and liabilities, effective risk control, and improved customer quality as key areas of performance [30][31] Question: What are the core drivers of non-interest income growth in the first half of the year? - Non-interest income reached RMB 114.6 billion, driven by wealth management income, corporate settlement fees, and contributions from financial market opportunities [50][51] Question: Can you provide an outlook on the NIM trend in the second half of the year? - Management expects continued pressure on NIM due to the low-interest environment but plans to optimize deposit management and enhance foreign currency investments [69][70] Question: What is the outlook for asset quality and credit strategy? - The NPL ratio remains stable, with management focusing on proactive credit risk management and supporting key industries while addressing structural conflicts [75][79] Question: Will BOC adjust its credit growth plan after the capital injection? - Management indicated that the capital injection will enhance credit supply capabilities, focusing on technology finance, infrastructure projects, and green finance [84][86]
BANK OF CHINA(03988) - 2025 H1 - Earnings Call Transcript