Bank of Communications (SEHK:3328) Stock Revenue Strength Meets EPS Pressure

Bank of Communications stock closed at HK$7.51 on 28 August after a weak month for the shares, yet the latest earnings story is less about the share price drift and more about pressure inside the income statement. Second quarter 2026 basic earnings per share landed at ¥0.22401, below the first quarter print of ¥0.30, with quarterly net income at ¥21,712m.

For a long term investor, the headline is straightforward: profitability now looks tighter, while multi year revenue and earnings growth forecasts remain in place, and the valuation still appears low on a discounted cash flow view.

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Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025): ¥52,507m vs. ¥46,809m (higher year on year)
• Net Income (Excl. Extra Items) (Q2 2026 vs. Q2 2025): ¥21,712m vs. ¥18,959m (higher year on year)
• Basic EPS (Q2 2026 vs. Q2 2025): ¥0.22401 vs. ¥0.247666 (lower year on year)
• Non Performing Loans (NPLs) (Q4 2025 vs. Q2 2025): ¥116,983m vs. ¥115,036m (higher over the period reported)

Prefer clean charts over scrolling through dense tables of figures? See Bank of Communications' valuation picture laid out in a simple visual dashboard through the company report for Bank of Communications.

Revenue Resilience Supports Bank of Communications Bulls

For investors leaning positive on Bank of Communications, the latest quarter gives some support to the idea of a broad and resilient franchise. Revenue of ¥52,507m and net income of ¥21,712m both sit above the prior year period. That fits with a view that the underlying engine is still generating sizeable earnings despite sector headwinds. The recent AGM agenda around investments and governance also points to ongoing focus on longer term operations, which can matter for a large, systemically important bank.

Profit Squeeze and Asset Quality Keep Bears Engaged

On the cautious side, the earnings mix is less friendly. Basic EPS of ¥0.22401 is below the prior year quarter despite higher revenue and net income, which suggests pressure on per share profitability. Non performing loans rising from ¥115,036m to ¥116,983m over the reported periods also reinforces existing concerns about credit risk for a large Chinese bank. Recent share price weakness over 7 and 30 days adds to the sense that investors are still wrestling with these risks.

After EPS pressure, rising non performing loans and an unstable dividend record, you may want to review our independent risk analysis for Bank of Communications which shows 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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