AGRICULTURAL BANK OF CHINA(SH:601288) EBSCN·2025-05-03 07:34Investment Rating - The report maintains a "Buy" rating for Agricultural Bank of China (601288.SH) with a current price of 5.42 CNY [1]. Core Insights - Agricultural Bank of China reported a revenue of 186.7 billion CNY for Q1 2025, with a year-on-year growth rate of 0.4%, and a net profit attributable to shareholders of 71.9 billion CNY, reflecting a 2.2% increase year-on-year [4][5]. - The bank's net interest margin (NIM) was 1.34%, showing a decline of 8 basis points compared to 2024, but the rate of decline has narrowed [9]. - Non-interest income grew by 11.1% year-on-year, contributing to 25% of total revenue, indicating a positive trend in non-interest revenue streams [10]. Summary by Sections Financial Performance - Q1 2025 revenue and net profit growth rates were 0.4% and 2.2% respectively, with a year-on-year decline in the annualized return on average equity (ROAE) to 10.82% [4][5]. - The bank's net interest income decreased by 2.7%, while non-interest income increased by 11.1% compared to the previous year [5]. Loan and Deposit Growth - As of Q1 2025, the bank's interest-earning assets and loans grew by 6.3% and 9.8% year-on-year, respectively [6]. - The bank's loan growth was driven by high demand in key sectors, with significant increases in loans to strategic emerging industries and rural areas [7]. Asset Quality and Risk Management - The non-performing loan (NPL) ratio decreased to 1.28%, the lowest in history, with a total NPL balance of 334.6 billion CNY [11]. - The bank's provision coverage ratio was 297.8%, indicating strong risk mitigation capabilities [11]. Capital Adequacy and Valuation - The core tier 1 capital adequacy ratio stood at 11.2%, reflecting a slight decrease from the previous year [11]. - The report forecasts earnings per share (EPS) of 0.83, 0.85, and 0.87 CNY for 2025, 2026, and 2027 respectively, with corresponding price-to-book (PB) ratios of 0.68, 0.63, and 0.59 [12][13].