Agricultural Bank of China (1288) investor relations material

Executive summary

• Operating income for H1 2026 rose 11.2% year-over-year to RMB411.1 billion; net profit increased 5.8% to RMB148.1 billion, with return on net assets at 10.14%.

• Net interest income grew 10.5% year-over-year, while net fee and commission income declined 8.7% due to a high base effect from one-off gains in 2025.

• Asset quality remained stable with a non-performing loan (NPL) ratio of 1.25%, down 2 bps from end-2025, and provision coverage at 290.1%.

• Core deposits reached CNY 29.59 trillion, a 10.2% increase, and total assets rose to RMB51.06 trillion, up 4.7% from end-2025.

• The bank maintained its global systemically important bank status and ranked No. 3 globally by Tier 1 capital.

Financial highlights

• Net interest margin was 1.28%, up 2 bps from Q1 but down 4 bps year-over-year.

• Cost-to-income ratio improved to 26.34% from 27.81% a year earlier.

• Allowance to NPLs stood at 290.10%, among the highest in the sector.

• Return on average total assets was 0.59%; return on weighted average net assets was 10.14%.

• Capital adequacy ratio: 17.50%; CET1 ratio: 10.80%; leverage ratio: 6.17%.

Outlook and guidance

• Management expects continued high-quality growth, focusing on rural revitalization, manufacturing, and technology finance.

• Plans to further strengthen risk controls in real estate, local government debt, and inclusive finance.

• Guidance includes proactive fiscal and accommodative monetary policy support for the real economy in H2 2026.

• Expects to maintain stable asset quality and meet annual targets for the 15th Five-Year Plan period.

• Focus on leveraging digital transformation and rural revitalization for future growth.