Agricultural Bank of China Ltd. Q4 FY2025 earnings call

1. Stuck to main businesses: Provided service for agriculture, rural areas and farmers, with loans from country level regions balance reaching RMB 1 trillion for 4 consecutive years, deposit balance 14.3 trillion, an increase of RMB 1.23 trillion over the end of the previous year. 2. Stuck to essence of finance: Served the real economy, optimized allocation of financial resources, promoted own high-quality development, with loan balance reaching RMB 27.13 trillion, an increase of RMB 2.23 trillion over the end of the previous year. 3. Focused on client first: Expanded client base, improved client service capabilities, with personal mobile banking clients 609 million, monthly active users over 276 million. 4. Deepened reform and innovation: Integrated business technology data, created new impetus for business development, embraced technological revolution, advanced construction of smart banks, intensified data empowerment and AI applications.

In 2025, ABC's net profit reached RMB 292 billion with a growth rate of 3.3%, and operating income was RMB 725 billion with a growth rate of 2.1%. Total assets reached RMB 48.8 trillion with a growth rate of 12.8%. New loans and financial investment in local foreign currencies totaled RMB 4.7 trillion. Deposit growth rate was 7.7%, with an average daily increase in RMB deposits ranking first among comparable peers. NPL ratio of domestic banks declined for 5 consecutive years and further decreased by 3 basis points in 2025, remaining at 1.27%. Provision coverage ratio was 292.5%. The loan balance for agriculture, rural areas and farmers reached RMB 10.9 trillion, accounting for more than 40% of total loans. Personal loans, inclusive loans and private enterprise loans exceeded RMB 9 trillion, RMB 4 trillion and RMB 7 trillion respectively. Financial investment was RMB 16.3 trillion, an increase of RMB 2.47 trillion over the previous year. Personal consumption loans, including credit cards, had a growth rate of 9% and a balance of RMB 1.45 trillion. The balance of technology finance loan, green finance loan, inclusive finance loan reached RMB 4.7 trillion, RMB 5.93 trillion, RMB 4.35 trillion respectively, with growth rates of 20.1%, 18.7% and 20.9% respectively. Personal clients reached 896 million, nonbank financial assets on AUM for personal clients amounted to RMB 24.7 trillion, and corporate clients were 13.29 million.

1. Confident about 2026 performance due to stable macroeconomic performance and implementation of 15th Five-Year Plan outline. 2. From the first 2 months of 2026, operating income and overall operations maintained stable growth, physical loans increased by RMB 1.1 trillion, net interest income turned positive year-on-year. 3. Focus on driving positive growth of net interest income, expanding growth space of net interest income, and better controlling risks and cost to ensure higher profits at better cost.

Q: What is the outlook of ABC in next year in terms of NIM and net profit?

A: Li Lin said senior management is confident about better operating performance in 2026, with operating income and overall operations maintaining stable growth in the first 2 months, physical loans increased, net interest income turned positive, and will focus on driving positive growth of net interest income, expanding growth space, and better controlling risks and cost.

Q: Could you walk us through the plans or growth target for credit loans in 2026 and key areas?

A: Zhiheng Wang said will maintain current intensity of credit to support real economy, focus on national major strategies, including agriculture-related loans, rural revitalization, domestic demand, modern industrial system, inclusive SME loans, etc.

Q: What measures have you taken in order to manage and prevent risks? And about NPL formation rate and key focus in retail and corporate sectors?

A: Li Lin said ABC has placed risk prevention and management as internal theme, with NPL ratio down, special mention loan ratio and overdue loan ratio in good condition, and taken measures like building stratified marketing system, adhering to idea of minimization, unified credit management, integrated online and offline businesses, separating approval and credit granting, empowering with technology for risk management in inclusive retail business.

Q: Could you please elaborate more on the innovative measures on wealth management and plans moving forward?

A: Li Lin said ABC placed wealth management business development as important priority, with personal financial assets reaching RMB 24.7 trillion, and will create full spectrum of product portfolios, upgrade market open platform, provide full life cycle customer companionship, and persist in organizational-driven efforts to forge wealth management service capabilities.

Q: How will ABC support key foreign trade enterprises to go global and contribute to operating revenue and high-level opening up?

A: Zhiheng Wang said ABC has been implementing decisions and arrangements, with international settlement business volume and international trade financing business volume increasing, and will continue to help businesses go global, strengthen product innovation, enhance level of cross-border financial service, support international use of RMB, and optimize linkage mechanism, etc.

Q: How ABC will maintain the good momentum in inclusive finance for sustainable development in 2026?

A: Wang Dajun said will make good use of policy tools, institutions and mechanisms, and promote digitalization in inclusive finance, to ensure inclusive finance business maintains good momentum.

Q: How ABC will enhance your competitive edge in providing service to the county level areas?

A: Unknown Executive said will consolidate proportion of county level loan in overall loan portfolio, maintain intensity and stable asset quality, and do well in providing service to major projects and county levels, enhancing financial service capabilities, etc.

Q: What is your plans for this year's bond investment and judgment on bond interest rate for 2026?

A: Li Lin said ABC has been committed to serving real economy, with bond investment contributing a lot last year, and in 2026, will improve ability to assess situations, focus on national strategies, optimize investment portfolio, give full play to advantage as major bank, and empower with digital transformation.

Q: What are your best practices in supporting the development of sci-tech businesses and how will better develop the sci-tech finance business or fintech business?

A: Unknown Executive said has provided services to over 350,000 technology-based businesses, and in 2026, will provide service to modernized industrial system, provide full chain, full life cycle comprehensive service, and empower with data tools and AI.

Q: What is progress of the sustainable development and what are the next steps?

A: Unknown Executive said has implemented national strategy in sustainable development, with green finance balance nearly RMB 6 trillion, and will continue to follow strategy, deepen management system development, and provide better service to customers, employees, and stakeholders.

Q: What achievements has been made and what measures have been taken in application of AI in smart banks?

A: Unknown Executive said has accelerated service and product innovation, improved efficiency of online service, enhanced smart risk control, empowered anti-fraud and anti-money laundering, and will continue to improve accuracy and convenience of financial services through intelligent platform building.