Bank of Communications Co Ltd Class H 03328

Morningstar Rating
HK$8.14 −0.18 (2.16%)
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Company Report

Bocom's Yangtze River Delta Strength Supports Margin

Striving to become China's leading wealth-management bank, Bocom is building its international presence and developing a wide range of financial service businesses. The bank achieved solid progress in the transformation, as evidenced by its growing retail customer base, customer assets under management, and a booming credit card business, leveraging its solid customer base in the affluent Yangtze River Delta. Its deposit base remained weaker than those of moaty peers, resulting in higher funding costs. We expect Bocom still has a long way toward its goal of being a leading wealth management bank.

Price vs Fair Value

03328 is trading at a LOCK|T!nJ!q premium.
Price
HK$8.14
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
LOCK|XK
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Bocom has a deep and entrenched foothold in the Yangtze River Delta, which is the most developed area of China's private economy. Its nearly 20% contribution to China’s gross domestic product makes it fertile ground for future loan growth.

Bears

Credit card loan quality remains under pressure, with the special mentioned loan ratio increasing to 4.2%, the highest level among all retail loan categories.

Trading Information

Previous Close Price
HK$8.32
Day Range
HK$7.95–8.35
52-Week Range
HK$6.35–8.70
Bid/Ask
HK$8.14 / HK$8.16
Shares Outstanding
88.36B
Market Cap
HK$719.28B
Volume/Avg
79M / 30M

Key Statistics

Price/Earnings (Normalized)
7.29
Price/Sales
2.55
Dividend Yield (Trailing)
4.51%
Dividend Yield (Forward)
4.51%
Dividend Payment Schedule
Jan, Aug
Total Yield
4.51%

Company Profile

Bank of Communications stands as the only nationwide state-owned commercial bank headquartered in Shanghai and ranks among China's four oldest financial institutions. Following its 1987 restructuring as the nation's first state-owned shareholding commercial bank, Bocom is now executing a strategic pivot toward becoming a global wealth management institution with integrated operations spanning insurance, brokerage, trust, and asset management.The bank operates a comprehensive financial services platform encompassing corporate finance, personal banking, and money market activities. Bocom plays a strategic role in RMB internationalization as one of the inaugural participants in the Cross-Border Interbank Payment System.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
97,932

Competitors

Valuation

Metric
03328
601998
601988
Price/Earnings (Normalized)
7.297.259.37
Price/Book Value
0.530.660.81
Price/Sales
2.552.423.41
Price/Cash Flow
9.303.6113.60
Price/Earnings
03328
601998
601988

Financial Strength

Metric
03328
601998
601988
Quick Ratio
———
Current Ratio
———
Interest Coverage
———
Quick Ratio
No chart available

Profitability

Metric
03328
601998
601988
Return on Assets (Normalized)
0.62%0.72%0.93%
Return on Equity (Normalized)
8.48%10.00%13.31%
Return on Invested Capital (Normalized)
———
Return on Assets
03328
601998
601988

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