Bank of China dividend
Bank of China’s dividends have stayed in a narrow range, while it kept roughly two-thirds of common shareholders’ earnings and made no share buybacks in 2022–25. For a bank, conventional free cash flow misleads; the dividend remains dependent on credit costs, capital needs and future profits.
How much does Bank of China pay per share?
The five-year figures show a larger balance sheet alongside a falling NIM and credit charges. EPS has barely advanced, while dividends have stayed in a narrow range and the 4.3% yield depends on earnings and capital supporting distributions. The shares trade at 7.2x P/E and 0.6x price-to-book, signalling low expectations for returns.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 0.74 | 0.75 | 0.74 | 0.72 | 0.70 |
| − Dividends, per share | 0.24 | 0.24 | 0.24 | 0.23 | 0.22 |
| − Share buybacks, per share | 0.00 | 0.00 | 0.00 | 0.00 | |
| = Kept, per share | 0.50 | 0.51 | 0.50 | 0.49 |
Is Bank of China’s dividend covered by its cash?
BOC could either return earnings to owners or retain them to build the bank. It paid dividends and kept roughly two-thirds of common shareholders’ earnings. There were no share buybacks in 2022–25, so dividends were the direct way ordinary shareholders received cash. The table traces the five-year movement from profit after tax to common earnings, dividends, retained capital, acquisitions and diluted shares.
Conventional free cash flow also misleads because deposits create obligations and loans create earning assets. The investment case works if spreads hold, losses remain manageable, new capital earns acceptable returns and dividends grow without another material dilution. If those conditions weaken, both earnings and the multiple investors pay can fall.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Profit after tax | 257,936 | 252,719 | 246,371 | 236,725 | 227,339 |
| = Earnings for common shareholders | 229,187 | 221,541 | 216,608 | 213,103 | 205,908 |
| − Dividends declared on common shares | 72,917 | 71,360 | 69,593 | 68,298 | 65,060 |
| − Share buybacks | 0 | 0 | 0 | 0 | |
| = Kept to grow and build capital | 156,270 | 150,181 | 147,015 | 144,805 | |
| Paid out, % of earnings for common | 31.8% | 32.2% | 32.1% | 32.0% |
What could change Bank of China’s dividend?
The shares offer a moderate gain from HKD6.12, hinging on deposit-cost relief, manageable credit losses and capital discipline. Management promises distributions of at least 10% of profit attributable to ordinary shareholders; the proposed first-half 2026 payout ratio is 31%, subject to approval. It also set a RMB19.5 billion fixed-asset investment budget for 2026 without specifying how much creates new capacity.
Faster repricing of expensive deposits in late 2026 and 2027 could lift NIM. Migration of early-warning loans into impaired assets from 2027 to 2029 would pressure earnings and capital. Estimated 31 October 2026 results should show whether profit growth continues and CET1 holds. On 12 November 2026, BOC reaches its first optional redemption date. The RMB40 billion Tier 2 bond—a bank borrowing that can count toward regulatory capital and be repaid early—will test refinancing discipline.
What is Bank of China’s dividend yield against its share price?
| Today (Oct 11, 2026) | |
|---|---|
| Share price | 6.125 |
| P/E, last 12 months (calculated) | 7.2x |
| P/E, next 12 months (calculated) | 6.9x |
| Price to book (calculated) | 0.6x |
| Dividend yield (calculated) | 4.3% |