[Bank of China 3988 Performance] Bank of China: This year's net interest margin is expected to narrow significantly year-on-year, and net interest income is expected to recover and grow.

BOC （03988） At a performance briefing, BO C’s Deputy Governor and Board Secretary, Liu Chenggang, said that looking ahead to this year, the year-on-year decline in the Group’s net interest margin is expected to narrow significantly, and that net interest income is expected to achieve positive growth.

Liu Chenggang said that since the second half of last year, the Group’s foreign-currency net interest margin has stabilized and rebounded, driving the overall net interest margin to remain in line with the first half. In the second half, net interest income recorded positive year-on-year growth and also grew compared with the first half.

Liu Chenggang also said that this year, the Group needs to strengthen the basic foundation of asset-liability management to effectively control the decline in RMB interest spreads; build a globalized service system of higher quality to keep foreign-currency business interest spreads broadly stable; and refine interest-rate pricing management to lay a solid foundation for steady development.

BOC’s 2025 net interest margin was 1.26%, down 14 bps

Among the four major domestic banks including BOC, their net interest margins continued to fall last year, and net interest income declined year-on-year across the board. They need to rely on growth in non-interest income—such as fees and commissions—to drive overall revenue growth year-on-year. BOC said that the Group’s net interest margin was 1.26% last year, down 14 bps, mainly due to factors such as the decline in domestic RMB loan market quotation rates (LPR) and lower interest rates in foreign-currency markets, which caused the average yield on interest-earning assets to fall by 49 bps year-on-year.

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