Investment Rating - Industry Rating: Outperform the market (maintained rating) [6] Core Insights - Agricultural Bank's performance in the gold market has been outstanding this year, with a year-on-year revenue growth of 2.0% in the first three quarters, leading the four major banks in net non-interest income growth at 31.7% [12][15] - The bank's financial assets have shown significant gains from fair value changes, particularly during the first quarter when the bond market faced substantial declines, achieving a floating profit of 39 billion [16][17] - The bank's strategy of maintaining a low proportion of TPL accounts (below 4%) and cautious trading strategies during market adjustments has contributed to its strong performance [18][19] Summary by Sections 1. Performance in the Gold Market - Agricultural Bank's net non-interest income growth of 31.7% in 2025 Q1-Q3 is the highest among the four major banks, with a notable increase of 45.3% in Q1 despite negative growth in other banks [15][18] - The bank achieved a floating profit of 85 billion from financial investments due to fair value changes, outperforming its peers [17][18] 2. Factors Contributing to Strong Performance - The low proportion of TPL accounts and limited incremental growth in bond assets have minimized the impact of market adjustments on the bank's earnings [19][20] - The bank's strategy to control duration in TPL account bond assets has helped mitigate risks during market volatility, although it resulted in lower floating profits in Q2 [23][24] - The timing of bond asset allocations, particularly during high interest rates in February, has allowed the bank to maintain a low cost of holdings [25][26] 3. Outlook for Future Performance - With the central bank restarting government bond trading, there is an expectation of a recovery in capital gains for the bank's gold market business in Q4, although the low trading volume and duration strategy may limit floating profit growth [29][30] - The bank's reasonable classification of I9 accounts and duration management align with current and future market conditions, providing a foundation for potential outperformance [31][32] - As the year-end approaches, there may be incentives for the bank to realize floating profits through the sale of old bonds, as indicated by an increase in investment income contribution to revenue [32][33]