Bank of Communications Co. Ltd. (BOCOM)
China / Chinese banking
Active
Issuer Summary
BOCOM is a large Chinese state-owned bank supported by the MOF as a major shareholder, D-SIB / G-SIB designation, a large asset and deposit base, and the 2025 ordinary equity capital strengthening. Its senior issuer credit is strong. At the same time, profitability is not thick, with NIM in the low-1.2% range and ROA in the 0.6% range, and credit costs in real estate, credit cards, personal business loans and consumer loans need to be monitored. For senior bonds, investors can place weight on government support expectations and systemic importance. For non-capital TLAC, Tier 2, preference shares, overseas branch debt and subsidiary debt, investors should assess ranking, loss absorption, issuer, currency and governing law separately.
At the time of this report, BOCOM’s senior issuer credit is strong as a large Chinese state-owned bank, but that strength depends on scale, deposits, capital, the MOF as a major shareholder, D-SIB / G-SIB designation and government support expectations, rather than on high profitability. The direction is stable in the short term, but there are gradual downside risks from low NIM, overdue and restructured loans, real estate and retail credit, capital ratios, LCR / NSFR and foreign-currency funding. The likelihood of a sharp change is currently low, but the view should be revisited if weakening sovereign-support assessment, rapid asset-quality deterioration and deposit / foreign-currency liquidity stress coincide.
In conclusion, for senior bonds, investors can place weight on government support expectations and systemic importance. For non-capital TLAC, Tier 2, preference shares, overseas branch debt and subsidiary debt, however, it is necessary to clearly distinguish loss-absorption ranking and issuer differences.
Issuer Reports
Current public reports for this issuer.