Bank of China Posts 5% Q3 Profit Rise Amid Cash Flow Challenges

Bank of China reported a 5% increase in its third-quarter net profit, reaching approximately 60 billion yuan ($8.5 billion), reflecting stable financial performance amid challenges such as weakening credit demand. The bank maintained a steady net interest margin of 1.26% and a stable non-performing loan ratio, indicating resilience in lending profitability. Despite this, Bank of China experienced a significant decrease in net cash flows from operating activities due to increased cash outflows from loans and advances, which may affect future liquidity management. Concurrently, Bank of Qingdao Co. Ltd posted a 12% rise in revenue and a profit increase to RMB4.124 million for the first nine months, signaling growth in its earnings compared to the previous year. Both institutions demonstrate positive earnings trends, although Bank of China's cash flow challenges highlight areas for cautious financial strategy moving forward.