基本面稳健，县域和重点领域表现亮眼

Investment Rating - The investment rating for Agricultural Bank of China is "Accumulate" [1]. Core Views - The report highlights that while revenue and profit growth have declined, the performance remains better than comparable peers. In Q1 2024, the bank's net profit attributable to shareholders decreased by 1.63% year-on-year, and operating income fell by 1.76% year-on-year, compared to a 3.91% and 0.03% increase in 2023 respectively [1][3]. - The decline in profit is primarily attributed to the pressure on net interest margin, while the expansion in scale has positively contributed to performance. The net interest margin for Q1 2024 was 1.44%, down 26 basis points year-on-year, but the decline has narrowed compared to previous periods [1][3]. - The bank has increased its focus on county-level financial services, with significant growth in loans and advances in rural areas, which rose by 16.78% year-on-year, surpassing the overall loan growth rate of 12.92% [1][3]. - Asset quality indicators are improving, with a non-performing loan ratio of 1.32% at the end of Q1 2024, down 5 basis points year-on-year, and a provision coverage ratio of 303.22%, indicating strong risk resilience [1][3]. Summary by Sections Financial Performance - In Q1 2024, the bank's net interest income was 5,718 million, with a year-on-year growth rate of -1.76%. The net profit attributable to shareholders was 2,694 million, reflecting a growth rate of 3.94% [1][6]. - The report forecasts a slight recovery in profit growth, with expected net profit growth rates of 1.88%, 4.12%, and 5.26% for the years 2024E, 2025E, and 2026E respectively [1][6]. Capital Adequacy - As of Q1 2024, the core Tier 1 capital adequacy ratio was 11.37%, indicating a reasonable level of capital adequacy. The bank is actively working on enhancing its capital base through the issuance of subordinated bonds and perpetual bonds [1][3]. Loan and Deposit Growth - Total loans and deposits have shown robust growth, with total loans increasing by 12.92% year-on-year and total deposits by 12.25% year-on-year as of Q1 2024 [1][3]. Strategic Focus - The bank is strategically focusing on expanding its services in rural finance and key sectors, aiming to become a leading bank in supporting rural revitalization and serving the real economy [1][3].