Agricultural Bank of China (1288) H1 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached RMB136.5 billion, up 2% year-on-year, with operating income at RMB367.1 billion, up 0.4% year-on-year, and total assets at RMB42 trillion, up 5.3% from year-end 2023.

• Loans totaled RMB24.4 trillion, up 7.8% year-on-year, and deposits reached RMB34.1 trillion, with strong growth in both corporate and personal segments.

• Asset quality remained stable, with NPL ratio at 1.32%, allowance to NPLs at 303.94%, and capital adequacy ratio at 18.45%.

• Enhanced support for rural revitalization, green finance, and inclusive finance, with significant increases in county area loans, green credit, and private enterprise lending.

• Individual clients reached 870 million, with significant growth in credit card users and corporate clients.

Financial highlights

• Net profit increased 2% year-on-year to RMB136.5 billion.

• Operating income rose to RMB367.1 billion, up 0.4% year-on-year.

• Net interest income was RMB290.8 billion, up 0.1% year-on-year; net interest margin at 1.45%.

• Net fee and commission income declined 7.9% to RMB46.7 billion, while other non-interest income rose 19.9% to RMB29.6 billion.

• Cost-to-income ratio was 27.44%, and credit impairment losses decreased 1.3% to RMB101.0 billion.

Outlook and guidance

• Management expects stable growth for the remainder of 2024, focusing on expanding income sources, consolidating business, and prudent risk management.

• Continued emphasis on rural revitalization, green finance, technology finance, and risk mitigation.

• NIM expected to remain stable in H2, with ongoing efforts to optimize credit structure and control liability costs.

• China's economy is expected to maintain stable operation and long-term positive growth, supported by proactive fiscal and prudent monetary policies.

• Ongoing reforms to enhance digital transformation, risk control, and service quality.