Bank of America Securities has revised its earnings projections for Agricultural Bank (01288) upward by 2% to 3% for the years 2026 through 2028. The institution increased its target price for the bank's Hong Kong-listed shares from HK$5.80 to HK$6.06, while the target for its A-shares (601288) was raised from 6.40 yuan to 6.67 yuan. The bank maintained a "Neutral" rating on the H-shares and an "Underperform" rating on the A-shares.
According to the report, Agricultural Bank's first-quarter profit before Tier 1 capital bonds increased by 4.5% year-on-year to 752 billion yuan, accounting for 25.3% of the full-year forecast. Core profit showed strong growth, rising 13.2% year-on-year and representing 32% of the annual projection, primarily driven by a 6 basis point quarter-on-quarter expansion in net interest margin to 1.26%. During the period, net interest income grew 6.3% sequentially, with total loans increasing 5% quarter-on-quarter. Corporate loans and retail loans rose by 8% and 4.4% respectively compared to the previous quarter.
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