Xin Lang Cai Jing·2025-11-10 08:32Core Insights - Agricultural Bank of China reported a revenue of 550.9 billion yuan for the first nine months of 2025, representing a year-on-year growth of 2.0%, and a net profit attributable to shareholders of 220.9 billion yuan, up 3.0% year-on-year [1][2] Financial Performance - The bank's revenue growth accelerated in 9M25 compared to 1H25, with a revenue increase of 2.0% (1H25: 0.8%) and a net profit growth of 3.0% (1H25: 2.7%) [1][2] - Non-interest income saw a significant increase of 20.7% year-on-year in 9M25, contributing 3.9 percentage points to revenue growth, driven by a 31.7% increase in investment-related non-interest income [1][2] - The bank's non-performing loan (NPL) ratio slightly decreased to 1.27% in 3Q25, with a provision coverage ratio improving to 295.1%, the highest among major banks [3] Deposit and Loan Growth - Deposits grew by 9.3% year-on-year in 3Q25, up from 8.3% in 2Q25, supporting credit expansion [2] - Loan growth in 3Q25 was also 9.3%, slightly lower than the previous quarter's 9.6%, but still above the average for state-owned banks [2] Interest Margin and Risk Management - The net interest margin for 9M25 was 1.30%, down 15 basis points year-on-year, with a stable margin of 1.28% in 3Q25 [3] - The cost of interest-bearing liabilities decreased by 7 basis points to 1.45% in 3Q25, benefiting from an improved liability structure [3] Investment Outlook - The bank is expected to enter a new valuation reassessment cycle, with a stock price increase of nearly 60% year-to-date, leading the banking sector [4] - The bank's dividend payout ratio for 1H25 was 32.1%, indicating potential for mid-term dividends to be realized within the year [2][4] - Future net profit growth is projected at 3.0%, 3.4%, and 4.3% for 2025-2027, with a current price-to-book ratio of 1.02 for 2025 [4]