Executive Summary
Bank of China Limited, together with its subsidiaries, provides a range of banking and related financial services. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet 6 star dividend payer.
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
Stable Share Price: 3988's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-2.4%
3988
-3.6%
HK Banks
-2.6%
HK Market
1 Year Return
-22.1%
3988
-23.2%
HK Banks
-2.3%
HK Market
Return vs Industry: 3988 exceeded the Hong Kong Banks industry which returned -23.2% over the past year.
Return vs Market: 3988 underperformed the Hong Kong Market which returned -2.3% over the past year.
Shareholder returns
| 3988 | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.4% | -3.6% | -2.6% |
| 30 Day | -5.5% | -10.4% | -7.3% |
| 90 Day | -18.6% | -18.0% | -0.5% |
| 1 Year | -16.6%-22.1% | -18.4%-23.2% | 1.8%-2.3% |
| 3 Year | -28.5%-40.6% | -24.9%-36.0% | -10.2%-20.1% |
| 5 Year | -10.0%-33.5% | 5.0%-20.6% | 14.7%-4.9% |
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
5 days ago | Simply Wall St
Reflecting on Bank of China's (HKG:3988) Share Price Returns Over The Last Three Years1 month ago | Simply Wall St
What Type Of Shareholders Make Up Bank of China Limited's (HKG:3988) Share Registry?2 months ago | Simply Wall St
Bank of China Limited (HKG:3988) Is An Attractive Dividend Stock - Here's WhyValuation
Is Bank of China undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 3988 (HK$2.4) is trading below our estimate of fair value (HK$6.68)
Significantly Below Fair Value: 3988 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 3988 is good value based on its PE Ratio (3.9x) compared to the HK Banks industry average (5.3x).
PE vs Market: 3988 is good value based on its PE Ratio (3.9x) compared to the Hong Kong market (11.1x).
Price to Earnings Growth Ratio
PEG Ratio: 3988 is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: 3988's PB Ratio (0.3x) is in line with the HK Banks industry average.
Next Steps
Future Growth
How is Bank of China forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
8.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3988's forecast earnings growth (8.6% per year) is above the savings rate (1.6%).
Earnings vs Market: 3988's earnings (8.6% per year) are forecast to grow slower than the Hong Kong market (22.4% per year).
High Growth Earnings: 3988's earnings are forecast to grow, but not significantly.
Revenue vs Market: 3988's revenue (9.3% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).
High Growth Revenue: 3988's revenue (9.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 3988's Return on Equity is forecast to be low in 3 years time (9.5%).
Next Steps
Past Performance
How has Bank of China performed over the past 5 years?
1.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3988 has a high level of non-cash earnings.
Growing Profit Margin: 3988's current net profit margins (37.9%) are lower than last year (41.8%).
Past Earnings Growth Analysis
Earnings Trend: 3988's earnings have grown by 1.2% per year over the past 5 years.
Accelerating Growth: 3988's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 3988 had negative earnings growth (-8.8%) over the past year, making it difficult to compare to the Banks industry average (-6%).
Return on Equity
High ROE: 3988's Return on Equity (9%) is considered low.
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
Financial Institutions Analysis
Asset Level: 3988's Assets to Equity ratio (11.6x) is moderate.
Allowance for Bad Loans: 3988 has a sufficient allowance for bad loans (186%).
Low Risk Liabilities: 77% of 3988's liabilities are made up of primarily low risk sources of funding.
Loan Level: 3988 has an appropriate level of Loans to Assets ratio (56%).
Low Risk Deposits: 3988's Loans to Deposits ratio (81%) is appropriate.
Level of Bad Loans: 3988 has an appropriate level of bad loans (1.4%).
Next Steps
Dividend
What is Bank of China current dividend yield, its reliability and sustainability?
9.05%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 3988's dividend (9.05%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.31%).
High Dividend: 3988's dividend (9.05%) is in the top 25% of dividend payers in the Hong Kong market (7.03%)
Stability and Growth of Payments
Stable Dividend: 3988's dividends per share have been stable in the past 10 years.
Growing Dividend: 3988's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.9%), 3988's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 3988's dividends in 3 years are forecast to be well covered by earnings (31.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Jiang Wang (57 yo)
0.75
Tenure
Mr. Jiang Wang serves as Vice Chairman and Non-Executive Director of BOC Hong Kong (Holdings) Ltd. and Bank of China (Hong Kong) Limited since March 20, 2020. Mr. Wang serves as Vice Chairman of Bank of Ch ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 1.17yrs | CN¥725.80k | no data | |
| Chief Information Officer | 2.25yrs | CN¥1.13m | no data | |
| Chief Audit Officer | 5.83yrs | CN¥1.12m | no data | |
| Chief Risk Officer | 1.5yrs | CN¥940.30k | no data | |
| Executive Vice President | 2yrs | CN¥666.40k | 0% CN¥ 0 | |
| Executive Vice President | 1.67yrs | CN¥387.90k | no data | |
| Executive VP & Executive Director | 1.5yrs | CN¥666.40k | no data | |
| Executive VP & Executive Director | 0.25yr | CN¥55.40k | no data | |
| Secretary to the Board of Directors & Company Secretary | 2.5yrs | CN¥1.11m | no data | |
| President & Vice Chairman | 0.75yr | no data | no data | |
| IR Manager | no data | no data | no data | |
| GM of Human Resources Department - Head Office & Employee Supervisor | 1.75yrs | no data | no data |
2.0yrs
Average Tenure
57yo
Average Age
Experienced Management: 3988's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 1.17yrs | CN¥725.80k | no data | |
| Executive VP & Executive Director | 1.5yrs | CN¥666.40k | no data | |
| Executive VP & Executive Director | 0.25yr | CN¥55.40k | no data | |
| President & Vice Chairman | 0.75yr | no data | no data | |
| GM of Human Resources Department - Head Office & Employee Supervisor | 1.75yrs | no data | no data | |
| Honorary Chairperson of the Board | 16.08yrs | no data | no data | |
| Independent Non-Executive Director | 3.67yrs | CN¥450.00k | no data | |
| Chairman of Board of Supervisors | 3.83yrs | no data | no data | |
| Non-Executive Director | 3.08yrs | no data | no data | |
| Independent Non-Executive Director | 4.08yrs | CN¥620.80k | no data | |
| Independent Non-Executive Director | 1.75yrs | CN¥454.90k | no data | |
| Independent Non-Executive Director | no data | no data | no data |
1.8yrs
Average Tenure
56.5yo
Average Age
Experienced Board: 3988's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$966.748b
- Shares outstanding: 294.39b
- Website: https://www.boc.cn
Number of Employees
Location
- Bank of China Limited
- No. 1 Fuxingmen Nei Dajie
- Beijing
- Beijing Province
- 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) | UNSP ADR EACH REP 25 ORD | US | USD | Oct 2008 | |
| W8VS | DB (Deutsche Boerse AG) | UNSP ADR EACH REP 25 ORD | DE | EUR | Oct 2008 |
Biography
Bank of China Limited, together with its subsidiaries, provides a range of banking and related financial services. It operates in six segments: Corporate Banking, Personal Banking, Treasury Operations, Inv ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/30 12:38 |
| End of Day Share Price | 2020/09/30 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.