AGRICULTURAL BANK OF CHINA(SH:601288) Mei Ri Jing Ji Xin Wen·2025-10-21 15:43Core Viewpoint - Agricultural Bank of China (ABC) has seen a significant rise in its A-share stock price, reaching a historical high of 7.89 CNY per share, marking a 1.68% increase on October 21, 2023, and achieving a 13-day consecutive rise, which has led to a market-to-book ratio (PB) recovery to 1 for the first time since 2018, breaking the long-standing "below par" situation of state-owned banks [2][4][8]. Group 1: Stock Performance - ABC's stock price has increased by over 50% year-to-date, outperforming other banks in the A-share market [4][5]. - The total market capitalization of ABC has surpassed 2.76 trillion CNY, making it the largest in the A-share market [4]. Group 2: Financial Highlights - ABC's credit growth is bolstered by its deep engagement in county-level economies, with county loans increasing by 916.4 billion CNY in the first half of the year, bringing the total to over 10 trillion CNY, which constitutes 40.9% of its domestic loans [5][6]. - The bank has the highest proportion of personal demand deposits among its peers, leading to lower funding costs and a net interest margin of 1.32% [6]. - ABC maintains a low non-performing loan (NPL) ratio, attributed to its conservative approach to real estate exposure, and has a high provision coverage ratio of approximately 295% [6][8]. Group 3: Market Trends - The overall A-share banking sector has rebounded, driven by increased risk aversion among investors and the attractiveness of dividend yields, with many state-owned banks offering dividend yields exceeding 4% [9]. - Analysts suggest that the banking sector typically sees higher performance in the fourth quarter, with a notable shift of funds back into the banking sector [9].