Xin Lang Cai Jing·2025-09-04 01:25Core Viewpoint - Agricultural Bank of China (ABC) has surpassed Industrial and Commercial Bank of China (ICBC) with a market capitalization of 2.11 trillion yuan, becoming the new "market value king" among major banks, highlighting a shift in the competitive landscape of large state-owned banks [1][2]. Financial Performance Comparison - As of mid-2025, the total assets, operating income, and net profit of the three major banks show significant differences, with ICBC leading in all key metrics [3][4]. - ABC reported a total asset of 46.86 trillion yuan, operating income of 369.94 billion yuan (up 0.85% year-on-year), and net profit of 139.51 billion yuan (up 2.66% year-on-year), but lagged behind ICBC and China Construction Bank (CCB) in both operating income and net profit [3][5]. Retail Banking Strengths - ABC is the only major bank to achieve positive growth in net profit in the first half of 2025, with a leading position in asset quality metrics such as non-performing loan (NPL) ratio and provision coverage ratio [6]. - ABC leads the industry in personal financial business metrics, including personal customer count (888 million), personal loan balance (9.31 trillion yuan, up 5.6%), and personal deposit balance (20.15 trillion yuan, up 7.78%) [7][8]. County-Level Financial Services - The growth of ABC's retail banking is significantly driven by its county-level financial services, which contributed over 56.8% to the bank's pre-tax profit in the first half of 2025 [10][11]. - The bank's county-level deposits and loans have shown robust growth, with county-level loans exceeding 10 trillion yuan and growing faster than overall loan growth [11]. Challenges and Profitability Concerns - Despite strong growth, ABC's retail financial pre-tax profit declined over 23% year-on-year in the first half of 2025, indicating potential challenges ahead [13][15]. - The decline in net interest income and an increase in credit impairment losses have contributed to the profitability pressures faced by ABC [15][16]. Asset Quality and Loan Performance - ABC's personal operating loans, which account for over 31% of its personal loans, have seen a significant increase in NPL ratio, raising concerns about asset quality as the loan balance reached 2.92 trillion yuan [18][19]. - The bank's average loan yield has decreased to 2.97%, while the average cost of deposits has not decreased proportionately, leading to a narrowing net interest margin [16][17]. Future Growth Strategies - ABC needs to develop a "second growth curve" as traditional retail banking models face challenges, particularly in adapting to new market conditions [20][21].