Bank of China nine-month operating income rises 7%

Overview

• China banking group's operating income for nine months rose 7%, driven by higher net interest income

• Profit attributable to equity holders for nine months up 6% year-on-year

• Net cash flow from operating activities surged on higher inflow from banks and financial institutions

Outlook

• Bank of China did not provide specific guidance for future quarters or the full year in its press release

Result Drivers

• NET INTEREST INCOME - Co said higher net interest income drove overall operating income growth

• OPERATING EXPENSES - Co said lower operating expenses contributed to profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Bank of China Ltd is HK$6.99, about 13.9% above its October 29 closing price of HK$6.14

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Oct 28 - China's Bank of Zhengzhou 9M net profit rises on higher net interest income

• Oct 28 - China's Bank of Qingdao nine-month net profit rises 15.7%

• Oct 30 - China's Bank of Communications Q3 profit rises 10.05%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)