BOCHK dividend: payout, coverage and yield
BOCHK pays a regular dividend, with payout guided at 40%–60% of earnings, while distributions compete with retained capital and future credit losses. The memo shows dividends, buybacks and capital kept to grow and build capital rather than a simple free-cash-flow cover test.
How much does BOCHK pay in dividends per share?
For a bank, retained earnings are not simply cash left in a drawer. They become equity that can support new loans and investments, absorb losses or remain as a safety cushion. BOCHK’s common earnings rose over the five years, and its common-dividend payout ratio also increased. The share count stayed unchanged, so the earnings improvement was spread across the same number of shares.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 3.80 | 3.62 | 3.10 | 2.45 | 2.17 |
| − Dividends, per share | 2.12 | 1.99 | 1.67 | 1.36 | 1.13 |
| − Share buybacks, per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| = Kept, per share | 1.67 | 1.63 | 1.42 | 1.10 | 1.04 |
| Net asset value per share | 34.08 | 32.04 | 30.28 | 28.35 | 28.19 |
| Diluted shares (average of the year), change | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
What this means. The amount kept can differ by one cent from profit minus dividends because the displayed figures are rounded, while the calculation uses more precise numbers.
Does BOCHK's dividend fit its cash and capital allocation?
A dividend transfers cash to shareholders and reduces retained capital. BOCHK’s implied payout rose between 2021 and 2025. Management’s regular payout range is 40%–60%, and its 2026–2028 programme targets at least HK$10.5 billion of additional shareholder returns.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Profit after tax | 41,216 | 39,118 | 34,857 | 27,230 | 24,999 |
| = Earnings for common shareholders | 40,148 | 38,233 | 32,723 | 25,940 | 22,970 |
| − Dividends declared on common shares | 22,467 | 21,029 | 17,678 | 14,347 | 11,947 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Kept to grow and build capital | 17,681 | 17,204 | 15,045 | 11,593 | 11,023 |
| Paid out, % of earnings for common | 56.0% | 55.0% | 54.0% | 55.3% | 52.0% |
What this means. The 2025 and 2022 profit figures were changed later to reflect business and accounting changes, so they are not exactly the numbers first reported.
What could change BOCHK's dividend?
Base paid DPS is HK$2.00 in October 2027. It rises to HK$2.25 in October 2028 and HK$2.40 in October 2029. The path reflects rising earnings and a payout within management’s 40%–60% target. The bear case gives HK$1.80, HK$1.60 and HK$1.50 as margin and credit pressure restrain distributions. The bull case gives HK$2.20, HK$2.65 and HK$3.00 as earnings and payouts improve. The already-paid special dividend is not counted again.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Book value | 369,609 (358,461 / 375,925) | 386,711 (360,336 / 398,825) | 410,538 (369,000 / 431,013) |
| Shares (millions) | 10,573 (10,573 / 10,555) | 10,573 (10,573 / 10,500) | 10,573 (10,573 / 10,500) |
| Dividends per share | 2.00 (1.80 / 2.20) | 2.25 (1.60 / 2.65) | 2.40 (1.50 / 3.00) |
| Price to book value | 1.45 (1.10 / 1.65) | 1.40 (1.00 / 1.75) | 1.35 (0.90 / 1.85) |