Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — H1 2025 Earnings Presentation
35 slides from Boc Hong Kong (holdings)'s earnings presentation, Aug 29, 2025
Slide 1: 2025 Interim Results
2025 Interim Results August 29, 2025
Slide 2: Disclaimer
Disclaimer This presentation and subsequent discussions may contain forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward-looking terminology such as believe, expect, anticipate, estimate, plan, project, target, may or will, o
Slide 3: Agenda
Agenda Strategy Review Financial & Outlook Business Results
Slide 4: Strategy Review
PRE 8 (2B) AR A Strategy Review
Slide 5: Increased Shareholder Returns on Solid Operating Results
Increased Shareholder Returns on Solid Operating Results Profit Attributable to Equity Holders ROE Dividend per Share HK$22,152mn 12.92% HK$0.58 (1H) +10.5% YoY +0.53 ppt YoY +1.8% YoY 5
Slide 6: Deepened Local Market Focus with Enhanced Service Quality
Deepened Local Market Focus with Enhanced Service Quality Personal Banking Corporate Banking Financial Markets #1 in cumulative number of new residential Remained the #1 lead arranger for HK/Macao Facilitated BOC Group’s leadership in offshore RMB mortgage loans for 6 consecutive years syndicated lo
Slide 7: Cemented GBA Business Advantages by Capturing Mutual Market Access Opportunities
Cemented GBA Business Advantages by Capturing Mutual Market Access Opportunities Facilitating MMA Serving Cross-border Expanded Quality Actively Captured Development Financial Needs Services and Products Policy Opportunities Supported all payment scenarios in BoC Pay+ transaction volumes in the Exte
Slide 8: Refined SEA Business Growth while Solidifying Financial Infrastructure Construction
Refined SEA Business Growth while Solidifying Financial Infrastructure Construction Fully supported Belt and Road cooperation, major “Going Global” projects and large corporates in the region, and launched a new corporate service brand for “Going Global” enterprises Enhanced “Wealth Management” bran
Slide 9: Deeply Involved in Offshore Market Development and Enhanced RMB Business Advantages
Deeply Involved in Offshore Market Development and Enhanced RMB Business Advantages RMB Customer Loans Offshore RMB Public Bond HK’s RMB Clearing Volume Accounted for Underwriting over 70%* of the Global Offshore Total Cementing Business Advantages Supporting Financial Development RMB clearing volum
Slide 10: Supported Local Financial Infrastructure Development while Advancing our Digitalisation
Supported Local Financial Infrastructure Development while Advancing our Digitalisation Fully supported the launch of Payment Connect and served as its sole clearing bank Became the first bank to launch a simplified process for personal unsecured loan and credit card applications via HKMA’s IADS Joi
Slide 11: Actualised ESG Concepts by Fulfilling Corporate Social Responsibilities
Actualised ESG Concepts by Fulfilling Corporate Social Responsibilities Corporate Green & ESG Bonds ESG Bond Sustainability-linked Loans Underwritten Investments +25% +124% +12% Acted as global coordinator for the HKSAR Government's issuance of public green bonds and infrastructure bonds denominated
Slide 12: Financial & Business Results
Financial & Business Results
Slide 13: Steady and Resilient Operating Performance
Steady and Resilient Operating Performance HK$m 3,282 (189) (1,237) (695) (232) 22,796 1,292 20,463 112 (+0.4%) (+25.8%) (+216.1%) (+2.3%) (+59.4%) (+234.8%) (+5.3%) (+11.4%) 1H24 Net Net Fee & Other Operating Impairment Net Loss from Taxation 1H25 Profit after Interest Commission Non- Expenses Allo
Slide 14: Well-optimised Deposit Structure
Well-optimised Deposit Structure Customer Deposits up 5.6% Strong Market Position HK$m 2,875,521 2,724,221 CASA ratio Market Share 57.9% 15.26% +11.5 ppt +31.7% 2024.12 2025.06 Time and Other Deposits Current and Saving Deposits (CASA) Deposit Market Share
Slide 15: Stable Loan Growth
Stable Loan Growth Customer Loans up 2.0% Leading Market Share Total: 1,710,380 /+2.0% HK$m Loans for use in HK - 680,252 Corporates +1.6% Loans for use in HK - 594,110 Individuals +1.7% Market Share 16.20% Loans for use 391,859 outside HK +3.5% Trade 44,159 Financing -1.5% 2024.12 2025.06 Loan Mark
Slide 16: Steady Net Interest Income
Steady Net Interest Income Net Interest Income up 0.4% Strive to Stabilise NIM HK$m HK$m 1H25: 1.54% / -7bp YoY 3,784,544 4.32% 3,580,673 1.70% 28,929 1.63% 1.55% 1.53% 28,817 0.73% 14,787 15,252 14,778 +0.4% +5.7% 14,151 1H24 1H25 1H24 1H25 3Q24 4Q24 1Q25 2Q25 Net Interest Income* Average Interest-
Slide 17: Notable Rebound in Fee Income
Notable Rebound in Fee Income Strong Growth in Investment and 文字可编辑 Net Fee Income up 25.8% 文字可编辑income Insurance-related HK$m 6,292 Securities brokerage 5,000 +64.1% 3,563 3,493 Funds distribution 3,241 Others +37.8% Loan commissions Funds management 1,662 +223.5% 1,352 1,355 Bills Safe deposit box
Slide 18: Remarkable Cost Efficiency Performance
Remarkable Cost Efficiency Performance Satisfying Core Requirements Outperforming the Market while Focusing on Key Initiatives in Cost-to-income Ratio HK$m 38.3% 23 (62) 95 35.9% * 133 8,310 8,121 23.0% 20.8% 1H24 Staff Premises & Depre- Others 1H25 1H24 1H25 Costs Equipment ciation Market Average B
Slide 19: Manageable Asset Quality
Manageable Asset Quality Better-than-market NPL Ratio Consistently Solidifying Risk Provisions HK$m 1,858 3,264 1.96% 1.97% 1H25 763 0.39% 643 1.05% 1.02% 1,080 2,067 1H24 412 0.25% 575 2024.12 2025.06 Net Charge of Impairment Allowances – Advances and Other Accounts Market Average BOCHK Annualised
Slide 20: Solid Capital and Liquidity Position
Solid Capital and Liquidity Position 文字可编辑 Solid Capital Ratios Abundant Liquidity Total 25.69% Capital Ratio +3.69ppt 237.19% 216.44% 208.42% Tier 1 23.69% Capital Ratio +3.67ppt 140.66% 141.06% 140.01% CET 1 23.69% Capital Ratio +3.67ppt 1H24 2H24 1H25 2024.12 2025.06 LCR (Average) NSFR (Average)
Slide 21: Outlook
“PSR SS (18 Ae) APR AS 5) BOC HONG KONG (HOLDINGS) LIMITED, c | = ] J 4 Outlook
Slide 22: Second Half Outlook: Challenges and Opportunities
Second Half Outlook Challenges Opportunities Deep restructuring of the global economy and Major national strategies and plans for deepening geopolitical situation adds uncertainty to the comprehensive reform in the Mainland continue to inject world’s economic and trade outlook new impetus to the mac
Slide 23: Key Priorities in the Second Half
Key Priorities in the Second Half Devise a new 5-year plan with a view to expanding the Group’s globalised advantages Build a business centre for the Group’s private banking, asset management and custody services, in support of Establish AI governance mechanism and continually Hong Kong’s developmen
Slide 24: Appendices
Slide 25: Income Statement and Balance Sheet Summary
Income Statement and Balance Sheet Summary Income statement summary (HK$m) 1H2025 1H2024 Change Net interest income* 28,929 28,817 0.4% Net fee and commission income 6,292 5,000 25.8% Other non-interest income* 4,801 1,519 216.1% Net operating income before impairment allowances 40,022 35,336 13.3%
Slide 26: Average Balances and Average Interest Rates
Average Balances and Average Interest Rates (HK$m / %) 1H2025 1H2024 Assets Average balance Average yield Average balance Average yield Balances and placements with banks and 633,508 2.14% 627,359 1.81% other financial institutions Debt securities investments and other debt instruments 1,467,450 3.2
Slide 27: Fee and Commission Income
Fee and Commission Income HK$m 1H2025 1H2024 Change Securities brokerage 1,579 962 64.1% Loan commissions 1,355 1,352 0.2% Credit card business 1,314 1,229 6.9% Insurance 1,162 360 222.8% Trust and custody services 509 431 18.1% Funds distribution 445 323 37.8% Payment services 388 364 6.6% Currency
Slide 28: Operating Expenses
Operating Expenses HK$m 1H2025 1H2024 Change Staff costs 5,484 5,351 2.5% Premises & equipment expenses 756 733 3.1% Depreciation and amortisation 1,374 1,436 -4.3% Others 1,256 1,193 5.3% Less: Costs directly attributable to insurance contracts (560) (592) -5.4% Total operating expenses 8,310 8,121
Slide 29: Customer Deposits
Customer Deposits HK$m 2025.06 2024.12 Change Total deposits from customers 2,875,521 2,724,221 5.6% CASA 1,664,187 1,263,804 31.7% Demand deposits and current accounts 339,370 230,347 47.3% Savings deposits 1,324,817 1,033,457 28.2% Time, call and notice deposits 1,205,262 1,449,606 -16.9% Structur
Slide 30: Advances to Customers
Advances to Customers HK$m 2025.06 2024.12 Change Loans for use in Hong Kong - industrial, commercial and financial 680,252 669,434 1.6% Property development 154,183 166,412 -7.3% Property investment 92,994 90,844 2.4% Financial concerns 24,040 16,140 48.9% Stockbrokers 4,589 3,475 32.1% Wholesale a
Slide 31: Gross Advances and Other Accounts by Internal Credit Grade and Stage Classification
Gross Advances and Other Accounts by Internal Credit Grade and Stage Classification 2025.06 2024.12 HK$m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Advances to customers 1,654,576 38,360 17,444 1,710,380 1,624,103 34,322 17,652 1,676,077 Pass 1,652,484 17,950 - 1,670,434 1,621,815 1
Slide 32: Non-bank Mainland Exposures
Non-bank Mainland Exposures On-balance sheet exposure Off-balance Total HK$m Total loans and O/W: for use in Debt securities sheet exposure exposure Subtotal advances Mainland and others Central government, central government-owned entities and their subsidiaries and joint ventures 276,797 62,228 12
Slide 33: Loan Exposure to Property Companies
Loan Exposure to Property Companies As at end of June 2025, commercial real-estate (CRE) related loans to corporates amounted to HK$329.7bn, down 1.9% from the end of 2024; accounting for 19.3% of Group’s total loans, down 0.7ppt Loan for use in HK, Mainland, SEA and other regions accounted for 75.0
Slide 34: Personal Banking and Wealth Management
Personal Banking and Wealth Management Rapid Growth in Personal Banking Effective Business Transformation of Private Banking + 35% + 44% +33% YoY 1H24 1H25 1H24 1H25 1H24 1H25 New-to-bank High-end Customers* Cross-border High-end Customers* Non-interest Income Wealth management income increased by 5
Slide 35: BOC Life Business Development
BOC Life Business Development HK$m 1H25 1H24 Change MOODY’S A1 Standard new premiums 14,831 11,100 33.6% Value of new business (VNB) STANDARD 2,178 1,600 36.1% A &POOR’S VNB Margin 14.7% 14.4% 0.3 pp Leading position in overall market and #1 in RMB insurance Leading position maintained in e-channel,
BOC Hong Kong (Holdings) — H1 2025 Earnings Presentation on 6ix