Tear Sheet: Bank of China Ltd.

This report does not constitute a rating action. The government's capital infusion into Bank of China's (BOC) earlier this year has strengthened the bank's capitalization amid profitability challenges, and its capacity to support national strategies. We expect BOC?s risk-adjusted capital (RAC) ratio to remain above 7% in 2025–2026, from 7.8% at end-June 2025. The bank received a capital injection of Chinese renminbi (RMB) 165 billion, boosting its core Tier 1 capital adequacy ratio to 12.57%, up by 37 basis points from end-2024. We expect BOC?s net interest margin to decline over the next 24 months, driven by persistently low interest rates. However, solid growth in non-interest income, a more favorable loan mix, and disciplined cost management should temper the impact.

...September 17, 2025 This report does not constitute a rating action. Strengthened capital base: The government's capital infusion into Bank of China's (BOC) earlier this year has strengthened the bank's capitalization amid profitability challenges, and its capacity to support national strategies. We expect BOC's risk-adjusted capital (RAC) ratio to remain above 7% in 2025¡2026, from 7.8% at end-June 2025. The bank received a capital injection of Chinese renminbi (RMB) 165 billion, boosting its core Tier 1 capital adequacy ratio to 12.57%, up by 37 basis points from end-2024. Margin contraction. We expect BOC's net interest margin to decline over the next 24 months, driven by persistently low interest rates. However, solid growth in non-interest income, a more favorable loan mix, and disciplined cost management should temper the impact. BOC's return on average assets declined to 0.7% in the first half of 2025, from 0.76% in the first half of 2024. Resilient asset quality: We believe BOC's...

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