Bank of China Exceeds Expectations with 2.6% Net Profit Increase in 2024 Amidst Economic Headwinds

Bank of China (BoC) reported a 2.6% increase in net profit for 2024, surpassing analyst estimates. The bank's net profit reached 237.84 billion yuan ($32.74 billion), up from 231.90 billion yuan in 2023. This figure exceeded the median estimate of 221.47 billion yuan from a survey of 13 analysts. BoC's net interest margin (NIM), a crucial profitability indicator, stood at 1.40% at the end of 2024, slightly below the 1.41% recorded at the end of September. The NIM for Chinese commercial banks experienced a record low in the fourth quarter of the previous year, influenced by government stimulus measures, including policy rate and mortgage rate reductions. Looking ahead, Bank of China anticipates increased uncertainty in the external environment for 2025, citing multiple risks and challenges, with global economic growth expected to remain weak. The bank's non-performing loan ratio was 1.25% at the end of last year, a slight decrease from 1.26% at the end of September.