Bocom’s Credit Quality Improves, but Earnings Outlook Still Challenging

Bank of Communications', or Bocom’s, full-year 2022 total revenue slowed to 1.3% year on year from 5% in the first three quarters, as fourth-quarter fee income fell 6.2% from 2021 levels. Despite the slowing revenue growth, net profit growth remained relatively steady at 5.2%, partly on provision release, which we had expected.