Update: Bank of China Ltd.

BOC's mainland real estate nonperforming loan (NPL) ratio rose to 5.67% at the end of June 2022 from 5.05% at the end of 2021. But improvements in other sectors such as manufacturing helped to offset this. The bank's overall NPL ratio for its mainland book declined 3 basis points (bps) to 1.46%. BOC has limited exposure to stalled projects. The bank's mortgage NPL ratio remained low at 0.36% as of end-June 2022. Its overseas NPL ratio was also less than 1%. The overall NPL ratio improved to 1.31% as of Sept. 30, 2022, from 1.34% as of end-June 2022. Provision coverage could exceed 70% of nonperforming assets on average between 2022 and 2024, in our view. This would provide an

...Bank of China Ltd. (BOC) has maintained stable asset-quality metrics amid challenges from sporadic COVID outbreaks, mainland property strains, and geopolitical tensions. The bank's risk management capability, diversified loan portfolio, and focus on large borrowers support its asset-quality performance. It has modest exposure to Chinese developers. Mainland real-estate loans accounted for less than 5% of the group's loan book as of June 30, 2022. BOC's mainland real estate nonperforming loan (NPL) ratio rose to 5.67% at the end of June 2022 from 5.05% at the end of 2021. But improvements in other sectors such as manufacturing helped to offset this. The bank's overall NPL ratio for its mainland book declined 3 basis points (bps) to 1.46%. BOC has limited exposure to stalled projects. The bank's mortgage NPL ratio remained low at 0.36% as of end-June 2022. Its overseas NPL ratio was also less than 1%. The overall NPL ratio improved to 1.31% as of Sept. 30, 2022, from 1.34% as of end-June...

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