2017 Interim Results Presentation Hong Kong / Beijing IFRS August - - PowerPoint PPT Presentation

2017 interim results presentation
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2017 Interim Results Presentation Hong Kong / Beijing IFRS August - - PowerPoint PPT Presentation

chinafigcsgsgh\ABC\2012 NDR\Presentation\2011 _v03_WP.pptx 2017 Interim Results Presentation Hong Kong / Beijing IFRS August 2017 0 chinafigcsgsgh\ABC\2012 NDR\Presentation\2011 _v03_WP.pptx Disclaimer


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

August 2017

2017 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

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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

  • f 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.

Disclaimer

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

Financial Performance Business Development Future Outlook

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

Performance Summary

30 Jun 2017 RMB 100MM 31 Dec 2016

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Change Jan – Jun 2017 Jan – Jun 2016 Net Interest Income 2,113 1,990 6.2% Net Interest Margin (NIM) 2.24% 2.31% 0.07 pps Net Fee and Commission income 425 511 16.9% Cost-to-income Ratio 28.3% 30.0% 1.7 pps Net Profit 1,087 1,051 3.4% Basic Earnings per Share (RMB) 0.33 0.32 0.01 Change Total Assets 205,736 195,701 5.1% Total Loans and Advances 104,119 97,196 7.1% Total Liabilities 192,151 182,485 5.3% Total Deposits 161,049 150,380 7.1% Capital Adequacy Ratio 13.16% 13.04% 0.12 pps CET1 Capital Adequacy Ratio 10.58% 10.38% 0.2 pps NPL Ratio 2.19% 2.37% 0.18 pps Provision Coverage 182% 173% 9 pps

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

Profitability: Stable Growth in Net Profit with High Level of Shareholder’s Return

Net Profit

RMB 100MM 4

ROAA ROAE

3.4% Growth

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

Recovering Net Interest Income with Stabilizing Interest Margin

Recovery of Net Interest Income

RMB 100MM

Interest Margin Stabilized and Ahead of Peers Daily Average Balance of Interest-bearing Assets Continued to Grow

RMB 100MM 7.8% Growth 6.2% Growth

Net Interest Margin (NIM)

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

Intermediary Income: Declines YoY with New Growth Areas

Net Fee and Commission income

RMB 100MM 6

Intermediary Income Affected by Disposal of Entrusted Assets and VAT Emerging Businesses Maintained Rapid Growth

RMB 100MM RMB 100MM 16.9% Decline 22.5% Growth 54.2% Growth 36.9% Growth 17.1% Growth

5.8% Decline 33.5% Decline

3.6% Growth

Agency income excluding entrusted asset disposal and impact of VAT

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

Cost and Expenses: Controlling Cost According to Income, Cost- to-Income Ratio Declines

Stable Operating Expenses

RMB 100MM 7

Declining Cost-to-Income Ratio

0.3% Growth 1.72pps Decline

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

Asset Quality: Stabilizing and Improving

NPL Balance and NPL Ratio Both Declined

RMB 100MM 8

Prudent Asset Classification

Multiple Initiatives to Reduce Non-Performing Assets

12 bps Decline

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Provision Coverage: Continuously Enhanced Risk Buffer

Sufficient Loan Provisions

RMB 100MM 9

Strong Provision Level Well-ahead of Peers

Increased 6.3 bn RMB YoY

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Capital Adequacy Ratio: Continues to Meet Regulatory Requirements

Capital Adequacy Ratio

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Financial Performance Business Development Future Outlook

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Corporate Banking Business: Remarkable Success in Supporting Real Economy with Continued Structural Optimization

Stable Growth in Corporate Deposits and Significant Loan Expansion

RMB 100MM

12 Implement Capacity Deduction Policies and Reduce Credit to Industries with Excess Capacity Reinforced Small and Micro Business Services

RMB 100MM

Support for National Strategies

RMB 100MM

11.9% Growth 6.6% Growth

Increased 231.7 bn RMB YoY

Note: major projects include national and provincial level key projects

Construction of Xiong’An New Area “One Belt One Road” SOE Mixed Ownership Reform Beijing, Tianjin and Hebei Yangtze River Economic Zone

Agricultural Bank of China

13.5% Growth Deposits Loans

Deduction of 56.7 bn RMB compared with beginning of the year RMB 100MM

Note: restricted industries mainly include coal, steel, certain whole sale and retail sectors and manufacturing sectors with high NPL ratios

Loans to Major Projects Loans to Small and Micro Business Credit Profile of Key Restricted Industries

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

Retail Banking Business: Further Solidified Competitiveness

Stable Growth in Personal Deposits

RMB 100MM

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Differentiated Mortgage Loans, Slower Growth in Personal Loans Reinforced Management Capability in Wealth Management and Private Banking

RMB 100MM RMB 100MM

4.4% Growth 10.2% Growth

1 3 . 9 % G r

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t h 1 5 . 9 % G r

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t h

Improved Market Competitiveness of Credit Card Business

10,000 cards, RMB 100MM 14.0% Growth

71% Growth Cards Issued Installments Volume

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County Business: Contribution Continues to Rise

Rapid Growth in County Deposits and Loans

RMB 100MM

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Higher Overall Contribution of County Business

Remarkable Achievements in Financial Services in Key Areas

RMB 100MM

9 . 6 %

G r

  • w

t h

10.4% Growth 14.4% Growth 23.8% Growth 14.0% Growth

6 . 8 % G r

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t h

New County Personal Loans as % of New Personal Loans

  • f Bank

35 bps higher

62.0% Growth

New County Loans as % of New Loans of Bank Interest Spread of Deposits and Loans

41% 58%

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Asset Management Business: Steady Development

Stable Development of Wealth Management Business with Slight Decline in Balance

RMB 100MM

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Continuous Growth in Assets under Custody

RMB 100MM

Rapid Growth in Precious Metals Trading

RMB 100MM

7.8% Decline 4 . 5 % G r

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t h 15.4% Growth

Increased Competitiveness in Foreign Exchange Settlement and Trading

4.3% Growth 28.3% Growth

Note: include volume of agency T+0 foreign exchange settlement and trading, forward and swap foreign exchange settlement and trading contracts

US$ 100MM

1 3 . 3 % G r

  • w

t h Foreign Exchange Agency Settlement and Trading Volume

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Internet Finance: Improved Value Creation

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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

18.7% Growth

Expedite Product Innovation and Engage Retail Clients

10,000 clients

9.0% Growth 11.2% Growth

ABC’s Internet Finance

Chin a’s “No. 1 Projec t” for agricu lture, farme rs and rural areas Stren gthen Corpo rate Busin ess Activ ate Perso nal Busin ess

14% Growth

Corporate E-banking Clients Online Coverage of Corporate Products

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International Business and Comprehensive Operations: Improved Cross-border Multi-functional Service Capabilities

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Stable Development of Subsidiaries with Comprehensive Business

RMB 100MM

Enhanced Cross-border Service Capabilities

RMB100 MM 10.4% Growth Taipei London Frankfurt Tokyo New York Seoul Singapore Sydney Hong Kong ABC International ABC Finance Vancouver Hanoi Dubai Luxembourg Europe Asia Pacific Americas China-Congo Bank Africa Moscow In planning and application 1.4% Growth 6 3 . 4 % G r

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t h

Network Coverage in Asia, Europe, North America, Oceania and Africa

Total Assets

Note: Includes ABC-CA Fund Management, ABC International, ABC Leasing, and ABC Life

Free Trade Zone Loans (RMB100MM) Total Assets of Overseas Institutions

Operational Entity In Planning and Application Joint Venture Representative Office

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Financial Performance Business Development Future Outlook

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Future Outlook

Strive to become a first-class international commercial bank group with unique operations, efficient and convenient services, comprehensive and synergetic functions, and exceptional value creation abilities

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Return to Financial Services Strengthen Entity Responsibility Focus on Continuous Reform

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

Future Outlook – Business Initiatives for 2017H2

Stress the focus, optimize credit structure and further strengthen services for the real economy Serve “Sannong” and enhance county business to further improve financial service quality for “Sannong” Strengthen capabilities in non-price competing areas and maintain stable growth of the liability business at reasonable costs Transform the development model, increase income while control expenses, and ensure realization of full-year financial goals Prioritize active prevention and mitigation of financial risks, strictly adhere to the bottom line Improve corporate governance, strengthen the internal risk control system, prevent case-specific risk and promote basic level management Fulfill social responsibility as a large state-owned bank and ensure safety and stability of operations

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Thank you! Q&A

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