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pww.comAgricultural Bank of China Limited, H1 2024 Earnings Call, Aug 30, 2024 - SEHK:1288

SEHK:1288

Unknown Executive [Executives] 💬

**- NPL Ratio and Asset Quality: NPL ratio is 1.32%, down by 0.01% from the end of last year. Overdue loans also dropped by 0.01%. The loan provisioning rate is 303.94%, with total provisions exceeding CNY 1 trillion.

  • Deposit and Loan Growth: Total deposits are CNY 34.1 trillion, with an incremental of CNY 1.5 trillion. Loans total CNY 24.4 trillion, with an incremental of CNY 1.77 trillion, representing a 7.8% increase.

  • Interest Income and NIM: Net interest income is CNY 290 billion, with a 1% increase. NIM is 1.45%, up by 1 bps from the first quarter.

  • Client Base Expansion: Individual clients number 870 million, ranking top among peers. New credit card users are 3.96 million, and Agricultural Wealth Management clients are 11.9 million.

  • Agriculture and Rural Development: Focus on supporting rural revitalization and urban-rural integration. County-level loans account for 40.1%, with an incremental of CNY 87 million, a 9.4% increase.

  • Green Finance and Inclusive Finance: Green credit balance exceeds CNY 4.8 trillion, with an increase of 30%. Inclusive finance loans are CNY 4.51 trillion, ranking #1 in growth.

  • Digital Transformation: Personal mobile MAU is 231 million, with an 8.59% increase. Online credit balance exceeds CNY 500 million, with a 20.3% increase.

  • Risk Management: Intensified efforts to mitigate credit risks, adjusted bond duration and structure, and strengthened management of various platforms and derivative strategies.

  • Future Outlook: Confidence in maintaining stable growth and asset quality, focusing on serving agriculture, rural areas, and real economy, and continuing to optimize credit structure and risk control.**

Zhiheng Wang [President & Executive Vice Chairman of the Board] 💬

** Key Points Mentioned by Zhiheng Wang**

  1. Performance Overview:

    • Net profit: CNY 136.5 billion, a 2% increase year-on-year.
    • Operating income: CNY 367 billion, a 0.4% increase year-on-year.
    • Interest income: CNY 290 billion, a 0.1% increase year-on-year.
    • Net Interest Margin (NIM): 1.45%, up 1 basis point from the first quarter.
    • Loans: Total CNY 24.4 trillion, an increase of CNY 1.77 trillion (7.8%).
    • Deposits: Total CNY 34.1 trillion, an increase of CNY 1.5 trillion.
    • Non-Performing Loan (NPL) ratio: 1.32%, down 0.01% from the end of last year.
    • Provision coverage ratio: 303.94%.

  2. Client Base:

    • Individual clients: 870 million, ranking top among peers.
    • New credit card users: 3.96 million.
    • Agricultural Wealth Management: 11.9 million.
    • Corporate clients: 11.5 million, an increase of 674,000.

  3. Strategic Focus:

    • Serving agriculture, rural areas, and farmers.
    • Coordinating rural revitalization and urbanization.
    • Increasing loans to county-level institutions (40.1% of total, 9.4% increase).
    • Focusing on major agricultural product supply and development.
    • Supporting poverty alleviation efforts.

  4. Financial Services:

    • Development of new quality productive forces.
    • Green and low-carbon transition: Green credit balance over CNY 4.8 trillion, increased by 30%.
    • Inclusive finance: PBOC-calculated inclusive loans CNY 4.51 trillion, ranking #1.
    • Pension support: Multilevel, multi-pillar pension scheme development.
    • Digital financial services: Personal mobile MAU 231 million, increased by 8.59%.

  5. Risk Management:

    • Intensifying credit risk mitigation.
    • Forward-looking market risk control.
    • Comprehensive risk control measures, including early warning and disposal.

  6. Future Outlook:

    • Maintaining stability and expanding income sources.
    • Continuing to serve agriculture, rural areas, and farmers.
    • Strengthening services to the real economy.
    • Mitigating various risks.
    • Confidence in maintaining stable asset quality and overall performance.

  7. Dividend Distribution:

    • Dividend distribution ratio kept above 30%.

    • Interim dividend distribution planned before the Spring Festival.

    • Suggested interim profit distribution: CNY 40.738 billion (CNY 1.16 per share).

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