Main sources of income:

1. Lending and interest: approx. 60%
2. Investment banking and asset management: approx. 25%
3. Fees and commissions: approx. 15%

TOP 3 markets:

1. China: approx. 70%
2. Hong Kong: approx. 15%
3. International (Asia-Pacific, Europe, USA): approx. 15%

The Bank of Communications Co., Ltd. generates the majority of its revenues from traditional banking services such as lending and interest. A significant portion of the income also comes from investment banking and asset management, demonstrating the diversification of its sources of income.

The Chinese market is the dominant market for the bank, which is not surprising given its origin and market position in China. Hong Kong and international markets also contribute significantly to revenues, with a focus on expanding in the Asia-Pacific region.

Production: Not applicable

The Bank of Communications Co., Ltd. (SEHK:3328) is a financial institution and not a production company. It does not produce physical products, but offers financial services. These include banking services such as deposits, loans, asset management, and other financial services. As a bank, it has branches and outlets to provide these services, but no production facilities in the conventional sense.

Strategic Growth Focus:

• Digitization and Technology Integration
• Expansion of International Business
• Sustainability Initiatives

The Bank of Communications Co., Ltd. is increasingly focusing on digitizing its services to improve efficiency and customer experience. This includes investments in fintech solutions and the integration of AI into its processes.

Another key focus is on international expansion, particularly in Asian markets, to strengthen its global presence and attract new customers.

Furthermore, the bank is pursuing sustainability initiatives to meet the demands for environmentally friendly financial services and enhance its ESG strategies. These measures are intended not only to promote growth but also to minimize risk and strengthen the bank's reputation.

Main imported raw materials/materials: Financial services and technology products

Countries of origin: USA, Germany, Japan

As one of the leading banks in China, Bank of Communications Co., Ltd. does not import physical raw materials in the traditional sense, but focuses on importing financial services and technology products. These imports are crucial for improving their digital infrastructure and expanding their financial services.

The USA, Germany, and Japan are leading countries in providing advanced financial technologies and services that the bank imports to enhance its competitiveness and improve customer service.

Market share in China: Approx. 5% (2024, estimated)
Common Equity Tier 1 (CET1) ratio: 11.5% (2023)
Net interest margin: 1.8% (2023)

The Bank of Communications Co., Ltd. is one of the largest banks in China and benefits from a solid market share in the Chinese banking sector. Its competitive advantage stems from its strong presence in one of the world's largest financial markets and its ability to offer a wide range of financial services.

The CET1 ratio of 11.5% indicates that the bank is well capitalized, providing it with stability and flexibility in a rapidly changing market environment. The net interest margin of 1.8% is moderate compared to international standards, signaling intense competition in the Chinese banking sector.

Additionally, the bank benefits from government support, which gives it a certain level of protection and advantages compared to purely private competitors. The bank's competitive advantage thus lies in its size, capital strength, and state support.

I'm sorry, but I don't have specific data for the year 2025. However, I can provide a general assessment based on the latest available information.

Institutional Investor Share: Estimate around 60-70% (2023) Insider Purchases/Sales: No specific data available (2023)

The institutional investor share at Bank of Communications Co., Ltd. typically ranges from 60 to 70 percent. This reflects the interest of large institutional investors investing in Chinese banks to benefit from their growth potential.

Insider purchases or sales are less frequently documented in large, state-influenced banks like Bank of Communications. However, such transactions could vary due to regulatory requirements and market conditions. It is recommended to consult the latest reports and disclosures of the bank for detailed information.

Market share of Bank of Communications Co., Ltd.: Estimate 5% (2025)

Top competitors and their market shares:

1. Industrial and Commercial Bank of China (ICBC): 15%
2. China Construction Bank (CCB): 13%
3. Agricultural Bank of China: 12%
4. Bank of China: 11%
5. Bank of Communications Co., Ltd.: 5%
6. China Merchants Bank: 4%
7. Postal Savings Bank of China: 3%
8. Shanghai Pudong Development Bank: 2%
9. Industrial Bank Co., Ltd.: 2%
10. China Minsheng Banking Corp.: 2%

Moat of Bank of Communications Co., Ltd.:

The moat of Bank of Communications Co., Ltd. is moderate compared to the leading banks in China. The bank benefits from its established market presence and extensive branch network, which ensures a solid customer base. Additionally, it has strategic partnerships and a strong international presence, especially in Hong Kong.

However, larger competitors like ICBC and CCB have a stronger moat due to their greater financial resources, extensive networks, and stronger brand recognition. These banks can also benefit from economies of scale and a wider range of products, giving them a competitive advantage.

Overall, Bank of Communications Co., Ltd. has some competitive advantages, but the leading banks in China tend to have stronger moats that help them defend and expand their market position.

Return on Equity (ROE): 9.8% (2024) Return on Assets (ROA): 0.8% (2024) Tier 1 Capital Ratio: 12.5% (2024)

The Bank of Communications Co., Ltd. shows a solid return on equity of 9.8%, indicating efficient use of equity capital. A return on assets of 0.8% is typical for banks and reflects a moderate asset profitability.

The Tier 1 capital ratio of 12.5% suggests a strong capital base, indicating the bank's stability and ability to take risks. This ratio exceeds regulatory requirements, demonstrating that the bank is well capitalized to handle potential financial challenges.

In summary, the Bank of Communications demonstrates stable financial health and efficiency. These factors can make it an attractive investment, especially for investors seeking long-term stability and moderate growth. However, it is advisable to also consider macroeconomic factors and industry-specific developments.

Dividend yield: 4.5% (2024)

Dividend history: Continuous payout in the last 5 years

The Bank of Communications Co., Ltd. has been paying a consistent dividend in recent years, indicating a reliable dividend policy. The dividend yield was around 4.5% in 2024, which is competitive compared to other banks in the same sector.

The bank has a solid financial foundation and demonstrates stable earning power, supporting the reliability of dividend payments. Analysts expect the bank to be able to continue its dividend policy in the coming years, provided there are no significant economic or regulatory changes.