BOC Hong Kong (2388) investor relations material

Executive summary

• Profit attributable to equity holders rose 7.1% year-over-year to HK$23,739 million, with ROE at 13.18% and ROA at 1.08%.

• Board declared total interim dividends of HK$0.5800 per share and a special dividend of HK$0.2388 per share for 2026, as part of a three-year shareholder return program targeting at least HK$10.5 billion in extra returns.

• Maintained market leadership in residential mortgages, syndicated loans, IPO receiving bank business, and offshore RMB clearing.

• Completed acquisition of BOCI Private Bank, enhancing private banking and wealth management competitiveness.

• Advanced digital transformation, with nearly 90% of personal banking transactions online and significant progress in AI and digital platforms.

Financial highlights

• Net interest income rose 3.3% year-over-year to HK$29,934 million; NIM at 1.57%, up 3 bps year-over-year.

• Customer deposits increased 3.2% to HK$3,037,174 million; customer loans grew 5.9% to HK$1,818,618 million.

• Net fee and commission income fell 5.8% year-over-year to HK$5,979 million, mainly due to lower insurance and trust/custody commissions.

• Operating expenses increased 6.7% year-over-year to HK$8,980 million; cost-to-income ratio at 22.5%.

• Asset quality improved: impaired loan ratio at 0.89%, down from 1.14% at year-end; annualized credit cost at 0.27%.

Outlook and guidance

• Board approved a three-year shareholder return programme (2026-2028), targeting at least HK$10.5 billion in extra returns and an orderly increase in regular dividend payout ratio.

• Expects continued global uncertainty and evolving financial markets, with focus on digitalization, regional business management, and sustainable development.

• NIM expected to face pressure due to interest rate trends and yield curve steepening.

• Operating expenses to grow steadily, with CIR to remain better than peers.

• Wealth management business to focus on high-end and cross-border customers, product innovation, and channel synergies.