AGRICULTURAL BANK OF CHINA(SH:601288) Huan Qiu Lao Hu Cai Jing·2025-08-20 13:46Core Viewpoint - Agricultural Bank of China (ABC) has surpassed Industrial and Commercial Bank of China (ICBC) to become the largest A-share circulating market value bank, driven by strong stock performance and stable financial growth [1][2]. Financial Performance - In Q1 2025, ABC reported revenue of 186.67 billion yuan, a year-on-year increase of 0.35%, and a net profit of 71.93 billion yuan, up 2.2% [1][3]. - For the full year 2024, ABC's net profit reached 282.08 billion yuan, growing 4.72%, significantly outpacing ICBC's growth of 0.51% [2]. - ABC's total assets reached 43.24 trillion yuan by the end of 2024, with an asset growth rate of 8.4%, ranking second among state-owned banks [3]. Asset Quality - ABC's non-performing loan (NPL) ratio improved to 1.28% as of Q1 2025, with a provision coverage ratio of 297.81%, the highest among state-owned banks [1][3][8]. Business Strategy - ABC's unique "Three Rural" financial strategy has created a differentiated advantage, with county-level financial services contributing nearly half of the loan growth [1][4]. - The bank has a comprehensive county-level financial management system, ensuring efficient operations in this segment [5]. Market Position - ABC's circulating market value reached 2.26 trillion yuan, surpassing ICBC, with a year-to-date stock price increase of 38.54%, the highest among major state-owned banks [2][3]. - The bank's county-level loans amounted to 9.85 trillion yuan by the end of 2024, accounting for 47.56% of its total loan growth [6]. Income Sources - ABC's county-level financial services generated significant interest income, with an average loan yield of 3.54% and a deposit interest rate of 1.54%, resulting in a net interest margin of 2.00% [7]. - Despite a decline in fee and commission income, ABC's investment income rose to 311.39 billion yuan in 2024, a 12.22% increase [8]. Investment Interest - ABC has attracted significant institutional investment, with China Ping An increasing its stake in ABC's H-shares to 16.09% by mid-2025 [9][10].