On August 28, during the 2026 interim results conference of Agricultural Bank Of China Limited (the Bank), President Wang Zhiheng stated that while enhancing the quality and efficiency of serving the real economy, the Bank delivered robust operating results in the first half of the year, with key financial metrics improving further from the first quarter. This, he noted, fully validates the foresight, adaptability, and prudence of the Bank's strategies regarding business scale, structure, and execution pace.
Looking ahead to the full year, Mr. Wang expressed confidence in the Bank's ability to sustain the positive operating momentum and maintain strong financial performance. He attributed the projected earnings growth to four primary drivers.
The first factor is the solid foundation of the asset business, which underpins interest income. By adhering to its core responsibilities and leveraging the advantages of its network in counties and townships, the Bank has consistently converted its customer base strengths into a competitive edge, driven by both rural revitalization and new urbanization. Over the past two years, growth in corporate loans has notably outpaced comparable peers. This year, the Bank has moderately increased bond investment to support the steady growth of interest-earning assets, a trend expected to continue in the latter half of the year.
The second driver is the continued decline in liability costs, leading to orderly reductions in interest expenses. In the first half, the Bank's average daily deposit growth in both volume and rate led its comparable peers, which not only strongly supported the real economy but also laid a solid foundation for lowering liability costs. As existing fixed-term deposits mature in the second half, the downward trend in liability costs is likely to persist for an extended period, further trimming interest expenses.
The third factor is the ongoing optimization of financial supply, which expands profit margins. With profound adjustments in the domestic financial structure and a rising share of direct financing in total social financing, the financial investment ratio of large state-owned banks is also increasing correspondingly.
The fourth driver is the continuous strengthening of risk control capabilities, which fortifies the profit base. The Bank maintains a prudent and stable operational approach, prioritizing risk prevention. During the "14th Five-Year Plan" period, it achieved the largest reduction in the non-performing loan ratio among comparable peers, while maintaining a consistent negative gap between overdue loans and non-performing loans. With a provision balance exceeding one trillion yuan and a provision coverage ratio leading the industry, the Bank has established a robust buffer for risk and a safety margin for profitability.
Mr. Wang concluded that these four factors will jointly support steady profit growth for the full year. He reaffirmed the Bank's confidence in continuing the positive momentum from the first half and its commitment to delivering stable operations as a return to investors.
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