Zheng Quan Shi Bao Wang·2026-01-02 06:10Core Viewpoint - In 2025, the A-share banking sector index increased by 12%, with significant fluctuations throughout the year, including a strong performance in the first half, a pullback in the third quarter, and a recovery in the fourth quarter [1] Group 1: Overall Market Performance - The A-share banking sector index saw a cumulative increase of 12% in 2025 [1] - Agricultural Bank of China (ABC) stood out with a stock price increase of over 52.66%, making it the highest-performing bank in terms of stock price growth [1] - By the end of 2025, six banks had stock price increases exceeding 20%, including ABC, Xiamen Bank, Shanghai Pudong Development Bank, Chongqing Bank, Industrial and Commercial Bank of China (ICBC), and Ningbo Bank [1] Group 2: Market Capitalization - By the end of 2025, ABC's A-share market capitalization surpassed that of ICBC, making it the highest market capitalization bank in A-shares, although ICBC still held a higher total market capitalization when including H-shares [1] - The total market capitalization rankings of the six major state-owned banks were led by ICBC (2.63 trillion yuan), followed closely by ABC (2.61 trillion yuan) [3] Group 3: Valuation Metrics - ABC's price-to-book (PB) ratio exceeded 1 for the first time, breaking the long-standing trend of state-owned banks trading below book value, which contributed to the overall valuation recovery of A-share listed banks [3] - The PB ratio for ABC was reported at 1.00, indicating a significant improvement in its market valuation [2] Group 4: Growth Drivers - The recovery of ABC's PB ratio is attributed to the potential release of county-level business opportunities amid urban-rural integration, which is expected to drive credit growth more significantly than its peers [4] - The bank benefits from lower liability costs and superior asset quality in the county financial sector, supporting steady growth in asset scale and profitability [4]