Finance
Bank of China Ltd.
Company Background
Bank of China was founded in 1912 as the central bank of the Republic of China by order of Sun Yat-sen, the leader of the 1911 revolution. Since the People's Republic of China was established in 1949, it has served as the sole bank that specializes in foreign exchange transactions. Among four major state-owned banks in China, Bank of China has the largest presence in the country's international banking operations.
The bank is the forefront of the government's efforts to internationalize its currency, the yuan. In Hong Kong, Frankfurt and other financial centers across the globe, the bank functions as clearing house of the currency. The bank is also the issuer of overseas yuan-denominated bonds.
In 2006, Bank of China was listed on Hong Kong Stock Exchange in June and on Shanghai Stock Exchange in July.
Tian Guoli has served as Chairman of the bank since May 2013. His prior positions include vice chairman at Citic Group and assistant executive president at China Construction Bank. In September 2014, Tian announced a program to convert the bank's 58,000 temporary workers to permanent employees. It was a groundbreaking move in the country, where temp workers are becoming major source of manpower.
Business Summary
Bank of China Ltd. engages in the provision of banking and financial services. It operates through the following business segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Others. The Corporate Banking segment offers services to corporate customers, government authorities, and financial institutions such as current accounts, deposits, overdrafts, loans, custody, trade related products and other credit facilities, foreign currency, and derivative products. The Personal Banking segment provides services to retail customers such as current accounts, savings, deposits, investment savings products, credit and debit cards, consumer loans, and mortgages. The Treasury Operations segment deals in 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 includes debt and equity underwriting and financial advisory, sales and trading of securities, stock brokerage, investment research and asset management services, and private equity investment services. The Insurance segment specializes in the underwriting of general and life insurance business and insurance agency services. The Others segment comprises of investment holding and miscellaneous activities. The company was founded on February 5, 1912 and is headquartered in Beijing, China.
Financial Highlights
| Dec 2022 | HKD | USD |
| Revenue | 1,215.16B | 155,184.05M |
| Gross Profit | -- | -- |
| Operating income | 327,925.83M | 41,878.07M |
| Income before tax | 330,199.26M | 42,168.40M |
| Net income | 264,483.85M | 33,776.16M |
| EBITDA | -- | -- |
| Diluted EPS | 0.84 | 0.10 |
| Dividends Per Share | 0.25 | 0.03 |
| Total Assets | 32,462.73B | 4,159.24B |
| Total liabilities | 29,860.65B | 3,825.86B |
| Total equity | 2,444.91B | 313,252.01M |
| Operating cash flow | 426,364.63M | 54,449.29M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | |
| Revenue | 988,981.09M | 1,048.60B | 1,031.59B | 1,171.34B | 1,215.16B |
| Gross Profit | -- | -- | -- | -- | -- |
| Operating income | 267,666.44M | 280,833.69M | 283,035.88M | 331,535.45M | 327,925.83M |
| Income before tax | 269,502.34M | 283,011.94M | 276,675.78M | 331,604.15M | 330,199.26M |
| Net income | 213,303.56M | 212,501.61M | 216,726.73M | 260,999.27M | 264,483.85M |
| EBITDA | -- | -- | -- | -- | -- |
| Diluted EPS | 0.69 | 0.69 | 0.69 | 0.84 | 0.84 |
| Dividends Per Share | 0.21 | 0.20 | 0.23 | 0.25 | 0.25 |
| Total Assets | 24,252.28B | 25,470.13B | 28,932.77B | 32,688.60B | 32,462.73B |
| Total liabilities | 22,284.72B | 23,303.74B | 26,522.52B | 30,057.85B | 29,860.65B |
| Total equity | 1,839.37B | 2,026.56B | 2,262.73B | 2,477.35B | 2,444.91B |
| Operating cash flow | 245,674.68M | 265,855.79M | 532,855.39M | 517,109.01M | 426,364.63M |
| Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | |
| Revenue | 126,185.05M | 133,832.19M | 133,005.76M | 150,697.01M | 155,184.05M |
| Gross Profit | -- | -- | -- | -- | -- |
| Operating income | 34,151.82M | 35,842.57M | 36,492.53M | 42,653.08M | 41,878.07M |
| Income before tax | 34,386.06M | 36,120.58M | 35,672.50M | 42,661.91M | 42,168.40M |
| Net income | 27,215.60M | 27,121.40M | 27,943.12M | 33,578.38M | 33,776.16M |
| EBITDA | -- | -- | -- | -- | -- |
| Diluted EPS | 0.08 | 0.08 | 0.08 | 0.10 | 0.10 |
| Dividends Per Share | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 |
| Total Assets | 3,097.61B | 3,268.83B | 3,731.40B | 4,192.83B | 4,159.24B |
| Total liabilities | 2,846.30B | 2,990.80B | 3,420.56B | 3,855.39B | 3,825.86B |
| Total equity | 234,933.08M | 260,090.01M | 291,820.55M | 317,760.37M | 313,252.01M |
| Operating cash flow | 31,345.87M | 33,930.95M | 68,702.38M | 66,527.70M | 54,449.29M |
Valuation Measures
| Dec 2022 | |
| PER | 2.99 |
| ROA | 0.81% |
| ROE | 10.74% |
| Operating margin | 26.98% |
| Profit margin | 21.76% |
Management
- Vice Chairman & President: Jin Liu
- Chief Information Officer: Qian Meng
- Executive Director & Executive Vice President: Jing Zhen Lin
- Executive Vice President: Xiao Dong Zhang
- Executive Vice President: Yi Zhang
Shareholders
- National Council for Social Security Fund (4.9%)
- The Vanguard Group, Inc. (3.5%)
- BlackRock Fund Advisors (2.7%)
- Hang Seng Investment Management Ltd. (1.4%)
- Norges Bank Investment Management (1.2%)
- Dimensional Fund Advisors LP (0.8%)
- BlackRock Advisors (UK) Ltd. (0.7%)
- Geode Capital Management LLC (0.6%)
- Mitsubishi UFJ Financial Group, Inc. (0.6%)
- Charles Schwab Investment Management, Inc. (0.4%)
Contact Details
- Website:http://www.boc.cn
- Address: No. 1 Fuxingmen Nei Dajie, Xicheng District, Beijing, 100818, China
- Phone: +86.10.6659.6688
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Competitors
- Kasikornbank Public Co. Ltd.
- MMTec, Inc.
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