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Bank of China

SEHK:3988
Snowflake Description

Flawless balance sheet 6 star dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3988
SEHK
HK$1,312B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

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. The last earnings update was 24 days ago. More info.


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3988 Share Price and Events
7 Day Returns
2.7%
SEHK:3988
2%
HK Banks
0.3%
HK Market
1 Year Returns
-7.7%
SEHK:3988
-9.9%
HK Banks
-4.8%
HK Market
3988 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bank of China (3988) 2.7% 4.1% 9.5% -7.7% 20.2% 12.7%
HK Banks 2% 1.4% 5.3% -9.9% 29% 25.3%
HK Market 0.3% 2.3% 10.5% -4.8% 27.1% 20.8%
1 Year Return vs Industry and Market
  • 3988 outperformed the Banks industry which returned -9.9% over the past year.
  • 3988 underperformed the Market in Hong Kong which returned -4.8% over the past year.
Price Volatility
3988
Industry
5yr Volatility vs Market

Value

 Is Bank of China undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bank of China to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of China.

SEHK:3988 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 13 analysts.
= Stable Book Value * Return on Equity
= CN¥6.02 * 11.2%
CN¥0.68
Book Value of Equity per Share Weighted future Book Value estimates from 16 analysts. CN¥6.02
Discount Rate (Cost of Equity) See below 12.6%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:3988
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 25%) (352.14%))
1.777
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.78
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.777 * 5.96%)
12.59%

Discounted Cash Flow Calculation for SEHK:3988 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Bank of China is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:3988 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.2% – 12.59%) * CN¥6.02)
CN¥-0.08
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥-0.08 / (12.59% - 2%)
CN¥-0.77
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥6.02 + CN¥-0.77
CN¥5.25
SEHK:3988 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:3988)
1.169
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥5.25 x 1.169
HK$6.13
Value per share (HKD) From above. HK$6.13
Current discount Discount to share price of HK$3.81
= -1 x (HK$3.81 - HK$6.13) / HK$6.13
37.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Bank of China is available for.
Intrinsic value
38%
Share price is HK$3.81 vs Future cash flow value of HK$6.13
Current Discount Checks
For Bank of China to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bank of China's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bank of China's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:3988 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.59
SEHK:3988 Share Price ** SEHK (2019-04-18) in HKD HK$3.81
SEHK:3988 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥3.26
Hong Kong Banks Industry PE Ratio Median Figure of 31 Publicly-Listed Banks Companies 6.24x
Hong Kong Market PE Ratio Median Figure of 1,474 Publicly-Listed Companies 12.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bank of China.

SEHK:3988 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:3988 Share Price ÷ EPS (both in CNY)

= 3.26 ÷ 0.59

5.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Bank of China's expected growth come at a high price?
Raw Data
SEHK:3988 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
4.7%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.9x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.87x

*Line of best fit is calculated by linear regression .

SEHK:3988 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.53x ÷ 4.7%

1.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of China is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bank of China's assets?
Raw Data
SEHK:3988 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥5.14
SEHK:3988 Share Price * SEHK (2019-04-18) in HKD HK$3.81
SEHK:3988 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥3.26
Hong Kong Banks Industry PB Ratio Median Figure of 31 Publicly-Listed Banks Companies 0.75x
Hong Kong Market PB Ratio Median Figure of 2,149 Publicly-Listed Companies 1.03x
SEHK:3988 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:3988 Share Price ÷ Book Value per Share (both in CNY)

= 3.26 ÷ 5.14

0.63x

* Primary Listing of Bank of China.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of China is good value based on assets compared to the HK Banks industry average.
X
Value checks
We assess Bank of China's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Bank of China has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Bank of China expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bank of China expected to grow at an attractive rate?
  • Bank of China's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Bank of China's earnings growth is positive but not above the Hong Kong market average.
  • Bank of China's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:3988 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:3988 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 4.7%
SEHK:3988 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 15.1%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 6.2%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 13.8%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 11.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:3988 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:3988 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 607,693 200,910 3
2020-12-31 588,627 190,182 12
2019-12-31 532,899 181,584 6
SEHK:3988 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 403,593 -386,397 173,295
2018-09-30 401,247 -166,327 173,421
2018-06-30 396,794 -470,756 171,051
2018-03-31 398,301 -180,480 168,005
2017-12-31 394,990 -306,253 165,653
2017-09-30 403,502 -289,984 168,553
2017-06-30 404,217 -452,177 168,513
2017-03-31 395,602 -848,158 157,890
2016-12-31 395,482 -1,066,628 157,860
2016-09-30 409,569 -1,343,908 169,101
2016-06-30 416,674 -1,158,690 168,124
2016-03-31 413,918 -740,956 166,614

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bank of China's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
  • Bank of China's revenue is expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:3988 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Bank of China Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3988 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.69 0.73 0.67 5.00
2020-12-31 0.66 0.74 0.60 18.00
2019-12-31 0.62 0.64 0.60 15.00
SEHK:3988 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.59
2018-09-30 0.59
2018-06-30 0.58
2018-03-31 0.57
2017-12-31 0.56
2017-09-30 0.57
2017-06-30 0.57
2017-03-31 0.54
2016-12-31 0.54
2016-09-30 0.58
2016-06-30 0.58
2016-03-31 0.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bank of China is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bank of China's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bank of China has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Bank of China performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bank of China's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (4.6% vs 0.7%)
  • Bank of China's earnings growth has not exceeded the HK Banks industry average in the past year (4.6% vs 5.2%).
Earnings and Revenue History
Bank of China's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bank of China Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3988 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 403,593.00 173,295.00 141,610.00
2018-09-30 401,247.00 173,421.00 136,963.00
2018-06-30 396,794.00 171,051.00 136,963.00
2018-03-31 398,301.00 168,005.00 136,963.00
2017-12-31 394,990.00 165,653.00 136,963.00
2017-09-30 403,502.00 168,553.00 135,820.00
2017-06-30 404,217.00 168,513.00 135,820.00
2017-03-31 395,602.00 157,890.00 135,820.00
2016-12-31 395,482.00 157,860.00 135,820.00
2016-09-30 409,569.00 169,101.00 93,542.00
2016-06-30 416,674.00 168,124.00 93,542.00
2016-03-31 413,918.00 166,614.00 93,542.00
2015-12-31 414,303.00 165,833.00 93,542.00
2015-09-30 411,490.00 170,007.00 91,103.00
2015-06-30 410,727.00 170,617.00 91,103.00
2015-03-31 410,262.00 170,070.00 91,103.00
2014-12-31 407,515.00 169,595.00 91,103.00
2014-09-30 403,610.00 167,834.00 86,360.00
2014-06-30 398,318.00 165,914.00 86,360.00
2014-03-31 390,944.00 162,440.00 86,360.00
2013-12-31 383,337.00 156,911.00 86,360.00
2013-09-30 376,869.00 153,712.00 78,965.00
2013-06-30 367,464.00 148,894.00 78,965.00
2013-03-31 353,519.00 142,692.00 78,965.00
2012-12-31 345,783.00 139,656.00 78,965.00
2012-09-30 333,884.00 134,062.00 71,421.00
2012-06-30 323,756.00 129,203.00 71,421.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bank of China has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bank of China used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.
  • 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.
X
Past performance checks
We assess Bank of China's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bank of China has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Bank of China's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Bank of China's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bank of China Company Filings, last reported 3 months ago.

SEHK:3988 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,725,397.00 3,950,112.00 1,859,529.00
2018-09-30 1,689,080.00 3,918,897.00 3,445,157.00
2018-06-30 1,610,661.00 3,629,171.00 1,752,330.00
2018-03-31 1,583,670.00 3,560,317.00 3,510,580.00
2017-12-31 1,576,679.00 3,396,395.00 1,222,880.00
2017-09-30 1,561,779.00 3,398,368.00 1,509,902.00
2017-06-30 1,527,872.00 3,465,825.00 1,465,285.00
2017-03-31 1,528,632.00 3,005,094.00 1,482,298.00
2016-12-31 1,487,092.00 2,883,224.00 1,217,820.00
2016-09-30 1,464,901.00 2,829,401.00 1,430,719.00
2016-06-30 1,420,303.00 3,070,303.00 1,116,646.00
2016-03-31 1,402,957.00 2,656,101.00 1,158,671.00
2015-12-31 1,357,605.00 2,851,928.00 928,756.00
2015-09-30 1,309,061.00 3,098,328.00 1,348,016.00
2015-06-30 1,267,149.00 2,920,539.00 1,705,915.00
2015-03-31 1,272,042.00 2,685,492.00 1,508,103.00
2014-12-31 1,183,428.00 2,566,934.00 1,019,672.00
2014-09-30 1,046,257.00 2,858,472.00 1,591,549.00
2014-06-30 1,006,456.00 2,810,522.00 1,862,130.00
2014-03-31 1,012,369.00 2,635,965.00 1,700,475.00
2013-12-31 961,477.00 2,264,749.00 1,393,069.00
2013-09-30 925,661.00 2,239,760.00 1,488,755.00
2013-06-30 886,333.00 2,065,082.00 1,257,468.00
2013-03-31 902,470.00 2,060,234.00 1,475,187.00
2012-12-31 861,542.00 2,144,819.00 1,337,150.00
2012-09-30 827,729.00 2,213,765.00 1,220,354.00
2012-06-30 791,617.00 2,199,629.00 1,755,697.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Bank of China has an acceptable proportion of non-loan assets held.
  • Bank of China's liabilities are made up of primarily low risk sources of funding.
  • Loans at Bank of China are broadly funded by customer deposits.
  • Bank of China's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Bank of China has a sufficient allowance for bad loans.
  • Bank of China has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Bank of China's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bank of China has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Bank of China's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.65%
Current annual income from Bank of China dividends. Estimated to be 6.2% next year.
If you bought HK$2,000 of Bank of China shares you are expected to receive HK$113 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bank of China's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.94%).
  • Bank of China's dividend is above the markets top 25% of dividend payers in Hong Kong (5.34%).
Upcoming dividend payment

Purchase Bank of China before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:3988 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 5%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 965 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 1.9%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:3988 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.24 1.00
2022-12-31 0.22 1.00
2021-12-31 0.21 6.00
2020-12-31 0.20 22.00
2019-12-31 0.19 18.00
SEHK:3988 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-01 0.184 5.731
2018-05-10 0.176 5.702
2017-06-29 0.168 4.988
2016-06-16 0.175 5.624
2015-04-30 0.190 6.408
2014-03-26 0.196 6.340
2013-05-30 0.175 6.565
2012-06-05 0.155 5.905
2011-03-24 0.146 5.541
2010-03-25 0.140 3.930
2010-03-23 0.140 3.974
2009-04-23 0.130 3.841

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Bank of China's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
X
Income/ dividend checks
We assess Bank of China's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bank of China afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bank of China has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Bank of China's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Liange Liu
COMPENSATION CN¥232,000
AGE 57
TENURE AS CEO 0.8 years
CEO Bio

Mr. Liu Liange has been the Vice Chairman and Executive Director at Bank of China Limited since October 2018 and President of Bank of China since August 2018. Mr. Liu has been Vice Chairman of BOC Hong Kong (Holdings) Ltd. and Bank of China (Hong Kong) Limited since December 15, 2018. He served as Vice Chairman and President of the Export-Import Bank of China from July 2015 to June 2018. Mr. Liu served as Vice President of the Export-Import Bank of China from March 2007 to February 2015. He also served as Director of the African Export-Import Bank from September 2007 to February 2015, Chairman of the Board of Supervisors of Sino-Italian Mandarin Capital Partners from March 2009 to June 2015, and Chairman of the Board of Directors of Regional Credit Guarantee and Investment Facility (Asia) from March 2014 to May 2015. Mr. Liu worked in the People’s Bank of China for many years, and successively served as Deputy Director – General of the International Department of the People’s Bank of China, President of the Fuzhou Central Sub-branch of the People’s Bank of China and Director of the Fujian Branch of the State Administration of Foreign Exchange, Director General of the Anti-Money Laundering Bureau (the Security Bureau) of the People’s Bank of China. He graduated from Graduate School of the People’s Bank of China with a Master’s degree in Economics in 1987. He holds the title of Senior Economist.

CEO Compensation
  • Insufficient data for Liange to compare compensation growth.
  • Liange's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Bank of China management team in years:

0.8
Average Tenure
56
Average Age
  • The average tenure for the Bank of China management team is less than 2 years, this suggests a new team.
Management Team

Siqing Chen

TITLE
Chairman of the Board
COMPENSATION
CN¥690K
AGE
58

Liange Liu

TITLE
Vice Chairman & President
COMPENSATION
CN¥232K
AGE
57
TENURE
0.8 yrs

Qiuwan Liu

TITLE
Chief Information Officer
COMPENSATION
CN¥552K
AGE
57
TENURE
0.8 yrs

Wei Xiao

TITLE
Chief Audit Officer
COMPENSATION
CN¥1M
AGE
58
TENURE
4.4 yrs

Jingzhen Lin

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥477K
AGE
53
TENURE
1.1 yrs

Yu Sun

TITLE
Executive Vice President
COMPENSATION
CN¥273K
AGE
45
TENURE
0.6 yrs

Feiqi Mei

TITLE
Secretary to the Board of Directors & Company Secretary
COMPENSATION
CN¥758K
AGE
56
TENURE
1.1 yrs

Zhe Yang

TITLE
IR Manager

Zhiheng Wang

TITLE
GM of Human Resources Department - Head Office & Employee Supervisor
AGE
45

Jiandong Liu

TITLE
Chief Risk Officer
AGE
49
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the Bank of China board of directors in years:

2.2
Average Tenure
56
Average Age
  • The average tenure for the Bank of China board of directors is less than 3 years, this suggests a new board.
Board of Directors

Siqing Chen

TITLE
Chairman of the Board
COMPENSATION
CN¥690K
AGE
58
TENURE
1.7 yrs

Liange Liu

TITLE
Vice Chairman & President
COMPENSATION
CN¥232K
AGE
57
TENURE
0.8 yrs

Muhua Chen

TITLE
Honorary Chairperson of the Board
AGE
97
TENURE
14.7 yrs

Jingzhen Lin

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥477K
AGE
53
TENURE
0.2 yrs

Zhiheng Wang

TITLE
GM of Human Resources Department - Head Office & Employee Supervisor
AGE
45
TENURE
0.3 yrs

Fulin Wu

TITLE
Executive VP & Executive Director
AGE
55
TENURE
0.2 yrs

Wanming Liu

TITLE
Deputy GM of the Audit Department - Head Office & Shareholder Supervisor
COMPENSATION
CN¥927K
AGE
60
TENURE
14.7 yrs

Zhengfei Lu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥550K
AGE
55
TENURE
5.8 yrs

Cheuk Yan Leung

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥400K
AGE
67
TENURE
5.6 yrs

Changyun Wang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥493K
AGE
54
TENURE
2.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
13. Nov 18 Sell National Social Security Fund Company 09. Nov 18 09. Nov 18 -8,000,000 HK$3.43 HK$-27,423,225
X
Management checks
We assess Bank of China's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bank of China has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is It Time To Consider Buying Bank of China Limited (HKG:3988)?

Today we're going to take a look at the well-established Bank of China Limited (HKG:3988). … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s examine Bank of China’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Simply Wall St -

Investors Who Bought Bank of China (HKG:3988) Shares Three Years Ago Are Now Up 17%

For example, the Bank of China Limited (HKG:3988) share price return of 17% over three years lags the market return in the same period. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During three years of share price growth, Bank of China achieved compound earnings per share growth of 1.6% per year.

Simply Wall St -

Here's What Bank of China Limited's (HKG:3988) P/E Ratio Is Telling Us

How Do I Calculate Bank of China's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 5.21 = CN¥3.09 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.59

Simply Wall St -

Is Bank of China Limited (HKG:3988) A Smart Choice For Dividend Investors?

Over the past 10 years Bank of China Limited (HKG:3988) has been paying dividends to shareholders. … Let's dig deeper into whether Bank of China should have a place in your portfolio. … Check out our latest analysis for Bank of China

Simply Wall St -

Grab Bank of China Limited (HKG:3988) Today With A Solid 5.7% Dividend Yield

If you are an income investor, then Bank of China Limited (HKG:3988) should be on your radar. … 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. … Currently yielding 5.7%, let's take a closer look at Bank of China's dividend profile.

Simply Wall St -

Can These Factors Give You An Edge In Bank of China Limited (HKG:3988)?

Post-GFC recovery has driven major financial institutions’ return to health, increasing market confidence in these “too-big-to-fail” banks. … The Basel III reforms are aimed at banking regulations to improve financial institutions’ ability to absorb shocks caused by economic stress which could expose banks to vulnerabilities. … We should we cautious when it comes to investing in financial stocks due to the various risks large banks tend to face.

Simply Wall St -

Real Risks You Need To Know Before Investing In Bank of China Limited (HKG:3988)

Post-GFC recovery has strengthened economic growth and credit quality, benefiting large banks such as Bank of China Limited (HKG:3988), with a market capitalisation of HK$1.1t. … A borrower’s demand for, and ability to repay, loans is driven by economic growth which directly impacts the level of risk Bank of China takes on. … The level of risky assets a bank holds on its accounts affects the attractiveness of the company as an investment.

Simply Wall St -

Should You Investigate Bank of China Limited (HKG:3988) At HK$3.44?

received a lot of attention from a substantial price movement on the SEHK over the last few months, increasing to HK$3.63 at one point, and dropping to the lows of HK$3.23. … A question to answer is whether Bank of China's current trading price of HK$3.44 reflective of the actual value of the? … Let’s take a look at Bank of China’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Why Bank of China Limited (HKG:3988) Should Be In Your Portfolio

There is a lot to be liked about Bank of China Limited (HKG:3988) as an income stock. … The stock currently pays out a dividend yield of 5.9%, and has a market cap of HK$1.1t. … Let's take a look at Bank of China in more detail.

Simply Wall St -

Here's What Bank of China Limited's (HKG:3988) P/E Ratio Is Telling Us

We'll look at Bank of China Limited's (HKG:3988) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Bank of China's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

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: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other Operations. The Corporate Banking segment offers current accounts, deposits, overdrafts, loans, trade-related products and other credit facilities, foreign exchange, derivatives, and wealth management products to corporate customers, government authorities, and financial institutions. The Personal Banking segment provides savings deposits, personal loans, credit and debit cards, payments and settlements, wealth management products, and funds and insurance agency services to retail customers. The Treasury Operations segment is involved in the foreign exchange transactions, customer-based interest rate and foreign exchange derivative transactions, money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment offers debt and equity underwriting, financial advisory, stock brokerage, investment research and asset management, and private equity investment services, as well as sells and trades in securities. The Insurance segment underwrites general and life insurance products; and provides insurance agency services. As of December 31, 2018, it had a total of 11,741 institutions, which included 11,193 institutions in Chinese mainland; and 548 institutions in Hong Kong, Macau, Taiwan, and other countries. The company is also involved in the aircraft leasing business. Bank of China Limited was founded in 1912 and is headquartered in Beijing, China.

Details
Name: Bank of China Limited
3988
Exchange: SEHK
Founded: 1912
HK$1,311,779,756,790
294,364,991,241
Website: http://www.boc.cn
Address: Bank of China Limited
No. 1 Fuxingmen Nei Dajie,
Beijing,
100818,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 3988 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 01. Jun 2006
OTCPK BACH.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 01. Jun 2006
DB W8V Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 01. Jun 2006
SHSC 3988 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 01. Jun 2006
SZSC 3988 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 01. Jun 2006
OTCPK BACH.Y ADR Pink Sheets LLC US USD 22. Oct 2008
SHSE 601988 Domestic Shares Shanghai Stock Exchange CN CNY 05. Jul 2006
XSSC 601988 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 05. Jul 2006
Number of employees
Current staff
Staff numbers
310,119
Bank of China employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 12:46
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.