Bank of China shares jump 5% as H1 profit rises, dividend payout lifted

Bank of China (HK:3988) shares experienced a significant 5.3% increase on Monday, driven by the lender's stronger-than-expected first-half profit and a decision to raise its dividend payout ratio. The bank reported a net profit of RMB123.6 billion, surpassing analysts' expectations and marking a 5.1% growth compared to the previous quarter.

Notably, Bank of China opted to increase its dividend payout ratio to 31%, up from the longstanding 30% level, in honor of its 20th anniversary since going public. This move resulted in an interim cash dividend of RMB1.19 per 10 shares, up from RMB1.094 per 10 shares in the first half of 2025. The positive earnings were attributed to lower funding costs, as domestic renminbi deposit rates fell by 22 basis points, and stable asset quality, with a non-performing loan ratio of 1.2% and a high provision coverage of 285%.

Looking forward, Bank of China aims to sustain growth through its overseas operations and fee-generating businesses, with a focus on technology finance, green finance, and expanding fee-based businesses globally.

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