2018 Interim Results Presentation · 0 chinafigcsgsgh\ABC\2012 NDR\Presentation\2011年业绩推介_v03_WP.pptx August, 2018 2018 Interim Results Presentation IFRS Hong Kong / Beijing

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chinafigcsgsgh\ABC\2012 NDR\Presentation\2011年业绩推介_v03_WP.pptx

August, 2018

2018 Interim Results Presentation

IFRS

Hong Kong / Beijing

1


Disclaimer

1

Information contained in this material does not constitute an offer of, or an invitation to

purchase or subscribe for, the securities of the Agricultural Bank of China Limited (the

“Company”) in Hong Kong, the United States or other areas. The securities of the Company

has not been registered under the United States Securities Act of 1933, as amended, and may

not be offered and sold in the United States, unless they are registered under applicable laws or

an exemption from the registration requirements is obtained.

This disclaimer contains statements which are defined as “forward-looking statements” within

the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of

the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements are

subject to known and unknown risks, uncertainties and other factors, and are based on the

current expectations, assumptions, predictions and forecasts of the industry in which the

Company currently engages. Unless otherwise required by law, the Company undertakes no

obligation to update any forward-looking statements to reflect any subsequent events or

circumstances, nor does the Company bear any obligation to make any corresponding changes

to its expectations. Although the Company believes that the expectations contained in the

forward-looking statements are reasonable, no assurance can be given by the Company to you

that the Company’s expectations will prove correct in future, and investors should note that

actual results could differ from those expected.

2


Financial Performance

Business Development

Future Outlook

2

3


Performance Summary

30 Jun 2018 RMB 100MM 31 Dec 2017

3

Change

Jan-Jun 2018 Jan-Jun 2017

Net Interest Income 2,338 2,113 10.7%

Net Interest Margin（NIM） 2.35% 2.24% 0.11pps

Net Fee and Commission income 436 425 2.8%

Cost-to-income Ratio 26.7% 28.3% 1.6pps

Net Profit 1,160 1,087 6.7%

Basic Earnings per Share（RMB） 0.35 0.33 0.02

Change

Total Assets 219,209 210,534 4.1%

Total Loans and Advances 114,631 107,206 6.9%

Total Liabilities 203,511 196,240 3.7%

Total Deposits 169,399 161,943 4.6%

Capital Adequacy Ratio 14.77% 13.74% 1.03pps

CET1 Capital Adequacy Ratio 11.19% 10.63% 0.56pps

NPL Ratio 1.62% 1.81% 0.19pps

Provision Coverage 248% 208% 40pps

4


1,051 1,087

1,160

2016H1 2017H1 2018H1

Profitability: Stable Growth in Net Profit，ROAA and ROAE

Remain at High Level

Net Profit

RMB 100MM

4

ROAA

ROAE

1.15% 1.08% 1.08%

2016H1 2017H1 2018H1

17.63% 16.74% 16.72%

2016H1 2017H1 2018H1

5


1,990

2,113

2,338

2016H1 2017H1 2018H1

Net Interest Income: Recovery of Income, Interest Margin

Continued to Grow

Net Interest Income Continued to Grow

RMB 100MM

Interest Margin Continued to Grow and Ahead of Peers

Daily Average Balance of Interest-bearing Assets

Continued to Grow

RMB 100MM

176,903

193,679 200,328

2016 2017 2018H1

2016 2017 2018H1

2.25%

2.28%

2.35%

2016 2017 2018H1

Net Interest Margin （NIM）

5

6


92

112

2017H1 2018H1

511

425 436

2016H1 2017H1 2018H1

Intermediary Income: Increases YoY with New Growth Areas

Net Fee and Commission income

RMB 100MM

6

Emerging Businesses Maintained Rapid Growth

RMB 100MM

Credit Card

66

91

2017H1 2018H1E-banking

20

28

2017H1 2018H1

Precious Metals

7


30.03%

28.31%

26.67%

2016H1 2017H1 2018H1

943

1,014 1,010

2016H1 2017H1 2018H1

Cost and Expenses: Continued Transformation and Development,

Cost-to-Income Ratio Declines

Stable Operating Expenses

RMB 100MM

7

Declining Cost-to-Income Ratio

Decline 0.4%

8


119%

115%

113%

2016 2017 2018H1

Asset Quality：Successful “Balance Sheet Cleaning” Plan，Both

NPL Balance and NPL Ratio Declined

Decline in Both NPL Balance and NPL Ratio

RMB 100MM

8

2,308

1,940 1,859

2.37%

1.81%

1.62%

2016 2017 2018H1

NPL Balance NPL Ratio

Strict and Prudent Asset Classification

Multiple Initiatives to Reduce NPLs

178 182

150 186

310

122

Recovery Write-off Transfer

2017H1 2018H1

Overdue Loans/NPLs

RMB 100MM

9


Provision Coverage: Continuously Enhanced Risk Buffer

Sufficient Loan Provisions

RMB 100MM

9

Provision Level Well-ahead of Peers

173%

208%

4.12%

3.77% 4.03%

2016 2017 2018H1

Provision Coverage Allowance to Loans

351

415

0.77%

0.82%

1.20%

2016H1 2017H1 2018H1

Loan Provision During the Preiod Credit Cost

667

248%

10


Capital Adequacy Ratio: Private Placement Successfully

Completed, Capital Greatly Enhanced

Capital Adequacy Ratio

10

10.38% 10.63% 11.19% 11.06% 11.26%

11.79%

13.04%

13.74%

14.77%

2016 2017 2018H1

CET1 Capital Adequacy Ratio Tier 1 Capital Adequacy Ratio Capital Adequacy Ratio

11




Future Outlook

11

12


55,997

63,794

2016 2017 2018H1

17,027

16,179

2017 2018H1

Corporate Business: Remarkable Success in Supporting Real

Economy with Continued Structural Optimization

Stable Growth in Corporate Deposits

RMB 100MM

12

Reduce Credit to Over Capacity Industries

8,423

10,782

2017 2018H1

Support for National Strategies

Note: major projects include national and provincial level key projects

Construction of

Xiongan New Area “One Belt One

Road”

SOE Mixed

Ownership Reform

Beijing-Tianjin-

Hebei Region

Yangtze River

Economic Zone

Agricultural

Bank of China

Deduction of 84.8

bn compared with

beginning of the

year

RMB 100MM

Note: The total 15 restricted industries mainly include coal, steel, certain whole

sale and retail sectors and manufacturing sectors with high NPL ratios.

Number of Major Projects

entered into the database

Credit Profile of Key Restricted Industries

Rapid Growth in Corporate Loans

53,683

61,476

2016 2017 2018H1

65,514 67,465

13


1,876

2,224

2017 2018H1

9,494

10,709

2017 2018H1

889

2017 2018H1

8,481

9,333

2017 2018H1

33,409

40,003

34.4%

37.3% 37.8%

2016 2017 2018H1Personal Loans Personal Loans as % of Total Loans

Retail Business: Further Solidified Competitiveness

Stable Growth in Personal Deposits

RMB100MM

13

Rapidly Growing Personal Loans

Reinforced Management Capability in Wealth

Management and Private Banking

88,151 92,465 95,642

2016 2017 2018H1

RMB100MM

RMB100MM

Improved Market Competitiveness of Credit

Card Business 10,000 cards, RMB100MM

Cards Issued Installments Volume AUM of Private Banking Size of Existing Customized

WM Products

433,72

1,242

14


35,684 38,203

2017 2018H1

Loans

69,157 72,510

2017 2018H1Deposits

3.32%

3.04%

County The Bank

150

3,496 3,108

5,625

517

4,233 3,510

6,188

Hui Nong e-Loans "Anjiadai" Loans For rural

households

Loans For County Green Credit Loans For County Area Urbanization

2017 2018H1

County Business: Contribution Steadily Rising

Rapid Growth in County Deposits and Loans

RMB100MM

14

Increasing Overall Contribution of County

Business

Remarkable Achievements of Financial Services in Key Areas

RMB100MM

Higher

28 bps

10.3%

County The Bank

Increase of Revenue

Higher

1.9pps

12.2%

Interest Spread of Deposits and Loans

15


19.7

21.4

2017H1 2018H1Custodian Business

Revevue

4,334

4,716

2017 2018H1Pension Under

Management

1,925

31,532

2,777

39,244

Gold Trading Volume Silver Trading Volume

2017H1 2018H1

1,532

1,800

2017H1 2018H1

17,524 18,465

2017 2018H1

Asset Management Business: Prudent compliance and

development

Stable Development of Wealth Management

Business Daily Average Balance RMB100MM

15

Continued Growth in Custodian

Business Revenue RMB100MM

Rapid Growth in Precious Metals Trading

Tons

Stable Development of Exchange

Agency Business

Note: include that of spot foreign exchange sales and settlements as well as foreign exchange

trading on behalf of customers, and the total contracts amount of forward/swapped foreign

exchange sale and settlements as well as foreign exchange trading.

US$100MM

Foreign Exchange Agency Settlement and Trading Volume

16


2.23 0.65

2.43 0.81

Registered Customers Of Retail

Internet Banking

Active Mobile Banking

Customers

2017 2018H1

532 581

2017 2018H1

Internet Finance: Improved Value Creation

16

Continued Transformation and Upgrading 互联网金融创新试点进展良好 Improved Service Functions and Strengthened

Corporate Business

10,000 clients

Expedite Product Innovation and Motivate

Retail Clients

10,000 clients

Internet

Finance

Strengthen Corporate Business Motivate

Retail Clients

1.01

2.46

2017 2018H1

Corporate E-banking Clients Numbers of Paying Merchants

Hui Nong

e-merchants

Hui Nong

e-payment

Hui Nong

e-loans

China’s

“No.1

Project” For

Sannong

17


1,481

1,674 1,790

2016 2017 2018H1

International Business and Comprehensive Operations: Improved

Cross-border Multi-functional Service Capabilities

17

Stable Development of Subsidiaries with

Comprehensive Business

RMB100MM

Enhanced Cross-border Service Capabilities

US$100MM

Total Assets of Subsidiaries with Comprehensive Business

Global Network Coverage

Total Assets of Overseas Institutions

Asia Pacific

• Hong Kong Branch（1995）

• ABC International Holding（2009）

• China Agricultural Finance（1989）

• Singapore Branch（1995）

• Seoul Branch（2012）

• Dubai DIFC Branch（2013）/ Dubai Branch（2016）

• Tokyo Branch（2013）

• Sydney Branch（2014）

• Hanoi Branch（2017）/ Hanoi Representative Office （2012）

• Taipei Representative Office （2015）

• Macao Branch（2017）

Europe

• Frankfurt Branch（2013）

• UK Subsidiary（2012）/London Branch（2017）

• Luxembourg Subsidiary （2014）/Branch（2015）

• Moscow Subsidiary（2014）

Americas

• New York Branch（2012）

• Vancouver Representative Office

（2012，Upgrading to Branch）

• São Paulo Representative Office （2017）

Africa

• Sino-Congolese Bank（2015）

1,093

1,222 1,306

2016 2017 2018H1

18




Future Outlook

18

19


Future Outlook

Strive to become a first-class

international commercial bank group with

unique operations, efficient services,

comprehensive and synergetic functions, and

exceptional value creation abilities

19

Serve The Real

Economy

Accelerate

Transformation

Focus on

Continuous Reform

Deepen rural revitalization

financial services: Focus on

promoting ”Sannong” financial

products and services, innovation of

service mode, support rural industry

amalgamation and system reform of

property rights.

Serve targeted financial poverty

alleviating：Strictly control loans

with commercial principal, enhance

fund management in poverty

alleviating. Achieve breakthrough in SME

financial services: Increase loan

support, enhance product innovation,

ensure the implementation of

inclusive financial services policies.

Improve both quality and

volume of“No.1 Project”: Based

on Hui Nong e-Loans, strength

system support, improve scale

and effectiveness. Eliminate business short

board: Develop supply chain

finance with industry chain

finance as breakthrough. Improve Intermediary

business efficiency and revenue:

Follow business online trend,

insist “online as priority”;

strength liquidity management,

ensure accuracy and compliance

management.

Promote technology and

product innovation mechanism

reform: Improve allocation of

technology resources, enhance the

ability in technology.

Promote asset management

system reform: Deepen asset

management company reform,

strictly implement new rules in asset

management industry

Promote business procedure

optimization: Implement speedy

trans-departmental communication

and decision-making mechanism,

ensure the successful

implementation of procedure

optimization.

Control

Financial Risk

Promote “balance sheet

cleaning”: Reduce and control the

risks, construct long term risk

management mechanism.

Prevent external risks

Strictly prevent and control case-

specific risks: Construct dually

responsibility system.

Enhance global compliance

management: Construct global top

anti-money laundering compliance

system, strength team building, give

play to the role of frontier

technology, enhance identification of

client identity and business control.

20


Future Outlook—Business Plan for 2018 H2

Focus on key areas, improve the accuracy and precision of services for the real economy

Strength system management, improve competitiveness of deposit business

Consolidate advantages, eliminate short board, enhance the quality and effectiveness of

intermediary business

Expedite reform in key areas and achieve transformation

Prevent and mitigate significant risk, ensure accomplishment of “balance sheet cleaning”

Strength basic level management, improve internal control and prevent case-specific risks

20

21


Thank you!

Q&A

21

Documents

2018 Interim Results Presentation · 0 chinafigcsgsgh\ABC\2012 NDR\Presentation\2011年业绩推介_v03_WP.pptx August, 2018 2018 Interim Results Presentation IFRS Hong Kong / Beijing