Agricultural Bank of China Limited

For the first half, net profit grew 5.8% year over year and operating income increased 11.2% year over year. Return on net assets was 10.14%. The net interest margin was 1.28%, up 2 basis points from the first quarter, and the deposit cost was 1.13%, down 21 basis points from the end of last year. The NPL ratio was 1.25%, down 2 basis points from the beginning of the year, while provision coverage was 290.1% and provision balance remained above CNY 1 trillion. Core deposits averaged CNY 29.59 trillion, up CNY 3.67 trillion or 10.2%, and loans and bonds increased by CNY 2.2 trillion, including local and foreign currency loan growth of CNY 1.69 trillion, up 6.2%, and bond investment growth of CNY 1.52 trillion, up 9.6%. Inclusive finance loans reached CNY 4.88 trillion, up CNY 432.4 billion, and county-level loans reached CNY 11.9 trillion, up 9%. The board proposed an interim dividend payout ratio of 31%, up 1 percentage point. Management said it expects the second half to stay on a faster growth track, with continued benefit from asset operation, falling liability costs, and improved risk control.

Zhiheng Wang emphasized that ABC is balancing scale, profitability, and risk control while staying focused on serving agriculture, rural areas, and the real economy. He said the bank will keep expanding county-level business, deepen inclusive finance and retail banking, and use AI to improve operations and risk management. His tone was constructive and confident, with repeated references to high-quality development and better value creation for shareholders.

Management highlighted strong deposit franchise momentum, saying average daily deposits reached CNY 29.59 trillion, up CNY 3.67 trillion or 10.2%, and that deposit repricing plus maturities should continue to reduce funding costs in the second half. They also pointed to the net interest margin at 1.28%, deposit cost at 1.13%, and a provision balance above CNY 1 trillion as evidence of resilience. On capital returns, the board proposed raising the interim dividend payout ratio to 31%, up 1 percentage point.

Analysts pressed on second-half growth, asset quality, deposit strategy, county-level business, retail banking, and inclusive finance. Management said second-half earnings should be supported by asset growth, lower liability costs, service to rural revitalization, and stronger risk control, while asset quality will remain a top priority. On retail and inclusive finance, executives stressed tighter credit discipline, better customer segmentation, more online/offline integration, and continued focus on lower-risk expansion in rural and small-business lending.