Core Viewpoint - Agricultural Bank reported a steady growth in revenue and net profit for the first half of 2025, indicating resilience in its financial performance despite challenges in the banking sector [1][2]. Financial Performance - In H1 2025, Agricultural Bank achieved operating revenue of 369.9 billion yuan and net profit of 139.9 billion yuan, with year-on-year growth of 0.8% and 2.5% respectively [1][2]. - Q2 2025 saw a faster growth in revenue and net profit, with operating revenue increasing by 1.35% year-on-year and net profit rising by 3.16% year-on-year [2]. Revenue Structure - The bank's net interest income for H1 2025 was 282.5 billion yuan, down 2.88% year-on-year, primarily due to a decline in net interest margin [2]. - Non-interest income showed strong growth, with net fee and commission income rising by 10.07% to 51.4 billion yuan, driven by a 62.3% increase in agency business income [2]. - Other non-interest income reached 36.0 billion yuan, up 23.15% year-on-year, mainly due to increased investment income from debt securities [2]. Interest Rate Dynamics - The net interest yield was 1.32% and the net interest margin was 1.20%, reflecting a year-on-year decrease of 13 basis points and 10 basis points respectively [3]. - The average cost of interest-bearing liabilities decreased to 1.60%, down 32 basis points year-on-year, benefiting from lower deposit rates and regulatory measures [3]. Asset Quality - As of June 2025, the non-performing loan (NPL) ratio improved to 1.28%, a decrease of 0.02 percentage points from the end of the previous year [4]. - The bank's provision coverage ratio stood at 295%, maintaining the highest risk absorption capacity among state-owned banks [4]. Investment Outlook - The bank maintains a "buy" rating, with a mid-year cash dividend of 1.195 yuan per 10 shares, translating to a dividend yield of 1.70% based on the closing price on September 1 [4].