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published in Blogs
Mar 31, 2022

Bank of China (BACHY, $9.95) posted biggest profit rise in almost 10 years

Bank of China posted  its largest profit increase in almost a decade in 2021,  as lending strengthened in the second year of the pandemic and bad loan accumulation eased. 

Net income rose +12.3% from a year ago to 216.6 billion yuan ($34 billion) in 2021, thereby surpassing a median expectation  of 209.8 billion yuan (as reported in a Bloomberg report). The year registered the fastest profit growth since 2013.

The bank’s non-performing loans ratio fell 0.13 percentage point to 1.33%, according to a filing. Its non-performing loans in the property sector climbed by 4.7 billion yuan to 34.7 billion yuan.

“We remain confident on the long term prospects of the Chinese economy,” said Liu Jin, president of Bank of China, at a press conference. He mentioned that central government’s policy measures to boost the economy led to opportunities for the banking sector and BOC will maintain “reasonable” growth in new loans.

Related Ticker: BACHY

Aroon Indicator for BACHY shows an upward move is likely

BACHY's Aroon Indicator triggered a bullish signal on January 06, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 258 similar instances where the Aroon Indicator showed a similar pattern. In of the 258 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BACHY advanced for three days, in of 292 cases, the price rose further within the following month. The odds of a continued upward trend are .

Bearish Trend Analysis

The 10-day RSI Indicator for BACHY moved out of overbought territory on December 27, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 55 cases where BACHY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for BACHY turned negative on January 07, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 57 similar instances when the indicator turned negative. In of the 57 cases the stock turned lower in the days that followed. This puts the odds of success at .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where BACHY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

BACHY broke above its upper Bollinger Band on December 24, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 46, placing this stock better than average.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: BACHY's P/B Ratio (0.323) is slightly lower than the industry average of (0.958). BACHY has a moderately low P/E Ratio (3.544) as compared to the industry average of (8.937). Projected Growth (PEG Ratio) (0.657) is also within normal values, averaging (2.643). BACHY has a moderately high Dividend Yield (0.093) as compared to the industry average of (0.054). P/S Ratio (1.271) is also within normal values, averaging (2.460).

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BACHY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

Notable companies

The most notable companies in this group are JPMorgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), Wells Fargo & Co (NYSE:WFC), HSBC Holdings PLC (NYSE:HSBC), Citigroup (NYSE:C), Barclays PLC (NYSE:BCS).

Industry description

Major banks are among the biggest companies in the world, often times with global reach and market capitalizations in the multi-billions. Large banks often have multiple arms spanning different disciplines, from deposits, to investment banking, to wealth management and insurance. The biggest banks often have key competitive advantages over smaller players in the industry in terms of brand recognition, cost of capital, and efficiency. Think J.P. Morgan, Bank of America, Wells Fargo, and Citigroup.

Market Cap

The average market capitalization across the Major Banks Industry is 89.36B. The market cap for tickers in the group ranges from 191.41M to 573.02B. JPM holds the highest valuation in this group at 573.02B. The lowest valued company is MSL at 191.41M.

High and low price notable news

The average weekly price growth across all stocks in the Major Banks Industry was 3%. For the same Industry, the average monthly price growth was 4%, and the average quarterly price growth was 9%. BCS experienced the highest price growth at 12%, while WEBNF experienced the biggest fall at -5%.

Volume

The average weekly volume growth across all stocks in the Major Banks Industry was 19%. For the same stocks of the Industry, the average monthly volume growth was 9% and the average quarterly volume growth was 50%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 47
P/E Growth Rating: 42
Price Growth Rating: 46
SMR Rating: 5
Profit Risk Rating: 45
Seasonality Score: 17 (-100 ... +100)
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Industry MajorBanks

Profile
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Address
No. 1 Fuxingmen Nei Dajie
Phone
+86 1066596688
Employees
306182
Web
https://www.boc.cn