EBSCN·2024-09-01 01:38Investment Rating - The report maintains a "Buy" rating for Agricultural Bank of China with a current price of 4.52 CNY [1]. Core Insights - The bank's revenue for the first half of 2024 reached 366.8 billion CNY, with a year-on-year growth rate of 0.3%, while net profit attributable to shareholders was 135.9 billion CNY, reflecting a 2% increase [1]. - The annualized weighted average return on equity (ROAE) stands at 10.75%, down by 0.7 percentage points year-on-year [1]. - The bank's net interest margin (NIM) improved slightly to 1.45%, indicating a stabilization in the interest margin trend [2]. - Non-interest income showed a positive growth of 0.9% year-on-year, contributing 760 billion CNY, which is 21% of total revenue [23]. - The bank's capital adequacy ratios remain robust, with a core Tier 1 capital ratio of 11.1% and a total capital adequacy ratio of 18.5% as of the end of Q2 2024 [3][11]. Revenue and Profitability - The bank's net interest income for the first half of 2024 was 571.75 billion CNY, while non-interest income was 123.08 billion CNY, showing a slight increase compared to previous periods [27]. - The bank's EPS is projected to be 0.78 CNY for 2024, with a stable dividend payout ratio of 30% [26][27]. Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.32%, with a decrease of 1 basis point from the beginning of the year [6]. - The bank's provision coverage ratio is at 303.9%, indicating a strong ability to absorb potential losses [24][42]. Capital Position - The bank issued 500 billion CNY in TLAC non-capital bonds to enhance its capital structure and meet regulatory requirements [3]. - The bank's total assets are projected to grow from 39.87 trillion CNY in 2023 to 60.92 trillion CNY by 2026 [27].