Tear Sheet: Bank of China Ltd.

This report does not constitute a rating action. Bank of China Ltd. (BOC) will benefit from its business and geographic diversity, primarily in lower-risk economies such as Hong Kong. Operations outside of mainland China contributed 28.0% of the bank?s profit before tax in 2025, up from 26.7% a year ago. BOC's better-yielding offshore businesses will ease profitability pressure from a compression in net interest margin in the home market, in our view. The bank's return on average assets declined by 5 basis points to 0.70% in 2025, still better than the national average. We anticipate BOC can weather shocks from the Middle East War, thanks to its risk control and portfolio diversification. The bank?s direct exposure to the Middle East

...(Editor's Note: S&P Global Ratings believes there is a high degree of unpredictability around the duration and scale of the Middle East war and its potential effect on commodity prices, supply chains, economies, and credit conditions. As a result, our baseline forecasts carry a significant amount of uncertainty. As situations evolve, we will gauge the macro and credit materiality of potential shifts and reassess our guidance accordingly. )...

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