Executive Summary
Bank of China Limited, together with its subsidiaries, provides a range of banking and related financial services in the People’s Republic of China and internationally.
Snowflake
Fundamentals
Very undervalued with flawless balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Bank of China's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
3.6%
SEHK:3988
3.7%
HK Banks
2.5%
HK Market
1 Year Return
-6.2%
SEHK:3988
-7.1%
HK Banks
-3.9%
HK Market
3988 matched the Banks industry (-7.1%) over the past year.
3988 underperformed the Market in Hong Kong which returned -3.9% over the past year.
Share holder returns
| 3988 | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.6% | 3.7% | 2.5% |
| 30 Day | 7.0% | 7.4% | 7.6% |
| 90 Day | 0% | -2.8% | 0.8% |
| 1 Year | -0.3%-6.2% | -2.2%-7.1% | -0.4%-3.9% |
| 3 Year | 6.6%-9.9% | 17.0%0.5% | 19.6%7.6% |
| 5 Year | 16.9%-11.6% | 29.6%-0.6% | 17.7%-1.7% |
Price Volatility Vs. Market
How volatile is Bank of China's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Is Bank of China Limited's (HKG:3988) Share Price Doing?1 month ago | Simply Wall St
Bank of China Limited (HKG:3988) Is An Attractive Dividend Stock - Here's Why1 month ago | Simply Wall St
Should Investors Buy Bank of China Limited (HKG:3988) And Lock In The 6.4% Dividend Yield?Valuation
Is Bank of China undervalued based on future cash flows and its price relative to the stock market?
>50%
Discount to future cash flow value
Intrinsic Value Based on Future Cash Flows
Bank of China's share price is below the future cash flow value, and at a moderate discount (> 20%).
Bank of China's share price is below the future cash flow value, and at a substantial discount (> 40%).
Price Based on Earnings
Bank of China is good value based on earnings compared to the HK Banks industry average.
Bank of China is good value based on earnings compared to the Hong Kong market.
Price Based on Expected Growth
Bank of China is good value based on expected growth next year.
Price Based on Value of Assets
Bank of China is good value based on assets compared to the HK Banks industry average.
Next Steps
Future Growth
How is Bank of China expected to perform in the next 1 to 3 years based on estimates from 19 analysts?
5.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Estimates
Future Annual Growth Analysis
Bank of China's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Bank of China's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Bank of China's revenue growth is positive but not above the Hong Kong market average.
Bank of China's earnings growth is positive but not above the Hong Kong market average.
Bank of China's earnings growth is expected to exceed the low risk savings rate of 2%.
Earnings per Share Growth Estimates
Future Return on Equity
Bank of China is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Next Steps
Past Performance
How has Bank of China performed over the past 5 years?
0.6%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Bank of China's year on year earnings growth rate has been positive over the past 5 years.
Bank of China's 1-year earnings growth exceeds its 5-year average (5.2% vs 0.6%)
Bank of China's earnings growth has not exceeded the HK Banks industry average in the past year (5.2% vs 5.2%).
Return on Equity
Bank of China has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Return on Assets
Bank of China used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.
Return on Capital Employed
Unable to establish if Bank of China improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
Next Steps
Financial Health
How is Bank of China's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Information is not available.
Information is not available.
Financial Institutions Analysis
Bank of China has an acceptable proportion of non-loan assets held.
Bank of China has a sufficient allowance for bad loans.
Bank of China's liabilities are made up of primarily low risk sources of funding.
Bank of China's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
Loans at Bank of China are broadly funded by customer deposits.
Bank of China has an acceptable level of bad loans (less than 2%).
Next Steps
Dividend
What is Bank of China's current dividend yield, its reliability and sustainability?
7.00%
Expected Dividend Yield
Dividend Yield and Payments Analysis
Bank of China's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).
Bank of China's dividend is above the markets top 25% of dividend payers in Hong Kong (6.06%).
Dividends per share have been stable in the past 10 years.
Dividends per share have increased over the past 10 years.
Current Payout to Shareholders
Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to Shareholders
Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
Next Steps
Management
What is the CEO of Bank of China's salary, the management and board of directors tenure and is there insider trading?
1.2yrs
Average management tenure
CEO
Liange Liu (58yo)
1.2yrs
Tenure
CN¥232,000
Compensation
Mr. Liu Liange serves as a Chairman at Bank of China Limited since April 28, 2019. Mr. Liu serves as Chairman of Board at Bank Of China (Hungária) Hitelintézet Zrt. since 2019. Mr. Liu served as a Vice Cha ...
CEO Compensation Analysis
Liange's remuneration is lower than average for companies of similar size in Hong Kong.
Insufficient data for Liange to compare compensation growth.
Management Age and Tenure
1.2yrs
Average Tenure
56yo
Average Age
The average tenure for the Bank of China management team is less than 2 years, this suggests a new team.
Board Age and Tenure
1.4yrs
Average Tenure
55yo
Average Age
The average tenure for the Bank of China board of directors is less than 3 years, this suggests a new board.
Insider Trading
No 3 month open market individual insider trading information.
Recent Insider Transactions
| Entity | Company |
| Shares | 140,896,000 |
| Max Price | CN¥2.96 |
| Entity | Company |
| Shares | 8,000,000 |
| Max Price | CN¥3.43 |
Ownership Breakdown
Management Team
Liange Liu (58yo)
Chairman & President
- Tenure: 1.2yrs
- Compensation: CN¥232.00k
Wei Xiao (59yo)
Chief Audit Officer
- Tenure: 4.8yrs
- Compensation: CN¥1.17m
Jiandong Liu (50yo)
Chief Risk Officer
- Tenure: 0.6yrs
Yu Sun (46yo)
Executive Vice President
- Tenure: 1yrs
- Compensation: CN¥272.50k
Zhe Yang
IR Manager
- Tenure: 0yrs
Feiqi Mei (57yo)
Secretary to the Board of Directors & Company Secretary
- Tenure: 1.5yrs
- Compensation: CN¥757.50k
Jingzhen Lin (54yo)
Executive VP & Executive Director
- Tenure: 0.6yrs
- Compensation: CN¥477.40k
Qiuwan Liu (58yo)
Chief Information Officer
- Tenure: 1.3yrs
- Compensation: CN¥551.80k
Zhiheng Wang (46yo)
GM of Human Resources Department - Head Office & Employee Supervisor
- Tenure: 0.8yrs
Fulin Wu (56yo)
Executive VP & Executive Director
- Tenure: 0.6yrs
Board Members
Muhua Chen (98yo)
Honorary Chairperson of the Board
- Tenure: 15.1yrs
Angela A. Chao (46yo)
Independent Non-Executive Director
- Tenure: 2.7yrs
- Compensation: CN¥425.00k
Liange Liu (58yo)
Chairman & President
- Tenure: 1.2yrs
- Compensation: CN¥232.00k
Xiquan Wang (59yo)
Chairman of Board of Supervisors
- Tenure: 2.8yrs
Xiaoya Wang (55yo)
Non-Executive Director
- Tenure: 2.1yrs
Changyun Wang (55yo)
Independent Non-Executive Director
- Tenure: 3.1yrs
- Compensation: CN¥493.00k
Jingzhen Lin (54yo)
Executive VP & Executive Director
- Tenure: 0.6yrs
- Compensation: CN¥477.40k
Guohua Jiang (48yo)
Independent Non-Executive Director
- Tenure: 0.8yrs
- Compensation: CN¥17.00k
Zhiheng Wang (46yo)
GM of Human Resources Department - Head Office & Employee Supervisor
- Tenure: 0.8yrs
Fulin Wu (56yo)
Executive VP & Executive Director
- Tenure: 0.6yrs
Company Information
Bank of China Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Bank of China Limited
- Ticker: 3988
- Exchange: SEHK
- Founded: 1912
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: HK$1.120t
- Shares outstanding: 294.37b
- Website: https://www.boc.cn
Number of Employees
Location
- Bank of China Limited
- No. 1 Fuxingmen Nei Dajie
- Beijing
- 100818
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BACH.F | OTCPK (Pink Sheets LLC) | Yes | Foreign Shares-Foreign Listed | US | USD | Jun 2006 |
| 3988 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jun 2006 |
| W8V | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | Jun 2006 |
| 3988 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jun 2006 |
| 3988 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jun 2006 |
| 601988 | SHSE (Shanghai Stock Exchange) | Domestic Shares | CN | CNY | Jul 2006 | |
| 601988 | XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect) | Domestic Shares | CN | CNY | Jul 2006 | |
| BACH.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Oct 2008 |
Biography
Bank of China Limited, together with its subsidiaries, provides a range of banking and related financial services in the People’s Republic of China and internationally. It operates in six segments: Corpora ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/09/15 12:44 |
| End of Day Share Price | 2019/09/13 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.