Ge Long Hui·2025-09-09 03:20Core Viewpoint - Agricultural Bank of China reported a revenue of 369.9 billion yuan for 1H25, a year-on-year increase of 0.8%, and a net profit attributable to shareholders of 139.5 billion yuan, up 2.7% year-on-year [1][2] Financial Performance - 1H25 revenue growth accelerated to 0.8% from 0.4% in 1Q25, while net profit growth improved to 2.7% from 2.2% in 1Q25, with an annualized ROE of 9.9% [1][2] - Non-interest income grew by 15.1% year-on-year in 1H25, up from 11.1% in 1Q25, driven by a 62% increase in agency income [1][2] - Interest income declined by 2.9% year-on-year in 1H25, with net interest margin at 1.32%, down 13 basis points year-on-year [2][3] Asset Quality and Risk Management - The non-performing loan (NPL) ratio remained stable at 1.28% in 2Q25, with a provision coverage ratio of 295%, the highest among major banks [2][3] - Loan growth was steady, with a year-on-year increase of 9.6% in 2Q25, and total new loans of 1.8 trillion yuan in the first half of the year [3] Dividend and Shareholder Returns - The mid-term dividend payout ratio was 32.1%, with a proposed distribution of 1.2 yuan per 10 shares, reflecting a commitment to returning value to shareholders [2] Investment Outlook - The bank is expected to enter a new valuation repair cycle, supported by strong ROE and asset quality, with growth potential in the "Three Rural" policies [4] - Revised profit forecasts for 2025-2027 indicate net profit growth rates of 3.0%, 3.4%, and 4.3% respectively, with the current stock price reflecting a PB of 0.63 times for 2025, indicating significant room for valuation recovery [4]