Ping An Securities·2025-09-02 08:24Investment Rating - The report maintains a "Recommended" rating for Agricultural Bank of China (601288.SH) [1][3] Core Views - Agricultural Bank of China demonstrated strong performance in non-interest income, with a year-on-year growth of 15.1% in the first half of 2025, significantly up from 11.1% in the first quarter [7] - The bank's net profit attributable to shareholders increased by 2.7% year-on-year, driven by a recovery in revenue growth [4][7] - The bank's total assets reached 46.9 trillion yuan, reflecting an 11.6% year-on-year increase, with loans and deposits growing by 9.6% and 8.3% respectively [4][7] Summary by Sections Financial Performance - In the first half of 2025, Agricultural Bank achieved operating income of 369.9 billion yuan, a 0.8% increase year-on-year, and a net profit of 139.5 billion yuan, up 2.7% [4][9] - The annualized return on equity (ROE) was reported at 10.2% [4] Income Breakdown - Non-interest income showed a significant increase, with fee income rising by 10.1% year-on-year, and other non-interest income growing by 23.2% [7][9] - Net interest income decreased by 2.9% year-on-year, influenced by a declining net interest margin of 1.32% [7][9] Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.28%, with a slight year-on-year decrease of 4 basis points [8] - The bank's provision coverage ratio stood at 295%, indicating strong risk mitigation capabilities [8] Future Projections - The report forecasts earnings per share (EPS) for 2025-2027 to be 0.84, 0.89, and 0.93 yuan respectively, with corresponding profit growth rates of 4.1%, 5.6%, and 5.4% [7][11] - The price-to-book (P/B) ratios for 2025-2027 are projected to be 0.91x, 0.84x, and 0.78x [7][11]