Agricultural Bank of China Ltd. Q4 FY2025 earnings call

First, stick to main businesses of agriculture, rural areas and farmers, with county-level loan balance reaching one trillion yuan for four consecutive years, deposit balance 14.3 trillion yuan, etc. Second, stick to essence of finance, implement national strategies, serve real economy, with loan balance of YBC reaching 27.13 trillion yuan, financial investment 16.3 trillion yuan, etc. Third, focus on client first, expand business development space, with client base expanding, non-bank financial assets on AON for personal clients 24.7 trillion yuan, etc. Fourth, deepen reform and innovation, integrate business technology data, create new impetus for business development, strengthen risk management and control.

ABC's net profit reached 292 billion yuan and operating income was 725 billion yuan in 2025, with double-digit growth. Net NIM was 1.28%, average return on total assets 0.63%, weighted average return on net assets 10.16%, capital-acquisition ratio 17.93%. Total assets reached 48.8 trillion with a 12.8% growth rate. New loans and financial investment in local and foreign currencies totaled 4.7 trillion yuan, loan growth rate 8.9%, deposit growth rate 7.7%. NPO ratio was 1.27%, special mission loan ratio 1.39%, overdue loan ratio 1.25%. Provision coverage ratio was 292.5 percent. Dividend for 2025 proposed at 1.3 yuan per share tax included, total dividend per share 2.495 Hong Kong dollars and 2.495 yuan per share tax included, payout ratio 30%.

2026 senior management is confident about better operating performance. From performance of first two months of 2026, operating income and overall operations maintained stable growth, physical loans increased by 1.1 trillion RMB, net interest income turned positive year on year. In next phase, will continue to drive positive growth of interest income, expand growth space of non-interest income, better control risks and costs, coordinate development and security.

Commercial banks face pressure, but ABC has measures for risk management. For inclusive retail business, have six aspects of management measures, including building stratified marketing system, adhering to idea of petty loan accounts, etc. For real estate loan, adhere to household-specific policy, project-specific plan, step-up risk control for large clients, etc.

Q: From Xinhua News Agency, outlook of ABC in next year in NIM and net profit.

A: Senior management confident, from first two months of 2026 performance, operating income and operations maintained stable growth, net interest income turned positive, will focus on driving positive growth of interest income, expanding non-interest income growth space, controlling risks and costs.

Q: From financial analyst, plans for credit loans growth targets in 2026.

A: Focus on national major strategies, highlight agriculture and rural areas and farmers-related fields, focus on domestic demand, support modern industrial system construction, focus on inclusive SME loans.

Q: From media, measures to manage and prevent risks.

A: Vice President Lin introduced measures like building stratified marketing system, adhering to petty loan accounts idea, integrating online and offline businesses, separating approval from credit granting, empowering technology for risk management.

Q: From Economic Daily, innovative measures on wealth management.

A: Mr. Lin introduced building full spectrum of portfolios, upgrading market open platform, providing full lifecycle customer companionship, persisting in organizational driven efforts, etc.

Q: From financial analyst, support for key foreign trade enterprises to go global.

A: President Bong introduced helping businesses go global, strengthening product innovation, strengthening implementation of regulatory policies, supporting international use of RMB.

Q: From Xinhua Asset Management, maintaining good momentum in inclusive finance in 2026.

A: Vice President Wang Dajun introduced making good use of policy tools, institutions and mechanisms, promoting digitalization in inclusive finance.

Q: From 21st Century Business News, enhancing competitive edge in county level areas.

A: President Vong introduced consolidating proportion of county-level loan, enhancing policy, resource, investment, doing good job in five aspects.

Q: From CICC, support for SciTech businesses.

A: Introduced enhancing technology and financial service ability, expanding product and service coverage, participating in policy pilot projects.

Q: From Peng Pai News, progress and next steps in ESG.

A: Introduced focusing on improving governance, fully implementing green finance strategy, putting people first, following national system of development.

Q: From media, achievements and measures of AI application in smart banks.

A: Introduced accelerated service and product innovation, improved smart risk control efficiency, systematically promoting AI application, etc.