Investment Rating - The report maintains a "Strong Buy" rating for Agricultural Bank of China (601288.SH) [5][9]. Core Views - The bank's total asset growth rate rebounded, with stable growth in loans and investments. In Q2, the growth rate of interest-earning assets increased by 5.34 percentage points to 11.60%, primarily driven by short-term liquidity assets [2]. - Deposit growth has recovered, with a year-on-year increase of 8.29% in the first half of the year, showing significant improvement compared to the first quarter [3]. - Non-interest income growth turned positive, with a 10.1% year-on-year increase in Q2, supported by a recovery in capital markets [3]. - Asset quality remains stable, with a non-performing loan ratio of 1.28% at the end of Q2, unchanged from the previous quarter [4]. - The bank announced an interim dividend of 1.195 yuan per 10 shares, accounting for 30% of net profit [4]. Summary by Sections Performance - In the first half of 2025, the bank's operating income, pre-provision operating profit (PPOP), and net profit attributable to shareholders grew by 0.85%, 0%, and 2.66% year-on-year, respectively [1][15]. - The growth rates for total assets, loans, and deposits were 11.60%, 9.63%, and 8.29%, respectively, indicating a stable performance [15]. Non-Interest Income - Non-interest income saw a year-on-year growth of 23.2% in the first half, with significant contributions from various services such as agency sales and custody [3][16]. Interest Margin and Asset-Liability Management - The bank's net interest margin has shown a slight decline, with a reported value of 1.32% [15]. The bank's strategy of asset expansion in a high-interest environment has been effective, although future asset growth may need to align with deposit growth [2][4]. Asset Quality - The non-performing loan ratio remained stable at 1.28%, with a provision coverage ratio of 295% [4]. The bank has effectively managed the increase in retail non-performing loans, which rose by 15 basis points to 1.18% [4]. Capital and Shareholder Returns - The bank's interim dividend reflects a commitment to returning value to shareholders, with a payout ratio of 30% of net profit [4]. The bank's capital adequacy ratios remain strong, supporting its growth strategy [15].