Net profit growth of 3.18%, ranking first among the six major banks! Live coverage of the Agricultural Bank of China's earnings meeting: no "chaotic" expansion

Ask AI · How can Agricultural Bank of China’s business transformation support leading net profit growth rate?

Source: Economic Observer Author: Lu Yongzhi

Agricultural Bank of China’s 2025 annual results briefing. Image source: Agricultural Bank of China

On March 30, Agricultural Bank of China (601288.SH/01288.HK) held its 2025 annual results briefing, while also disclosing full-year performance. Reporters from Economic Observer attended in person.

In 2025, Agricultural Bank of China recorded attributable net profit of RMB 291.04B, up 3.18% year over year. The growth rate ranked first among the six large state-owned banks; operating income was RMB 725.31B, up 2.08%, with both revenue and net profit maintaining double-digit growth for two consecutive years.

Wang Zhiheng, President of Agricultural Bank of China, said at the briefing that the bank’s performance improved quarter by quarter throughout the year, staying steady and making progress, with continuously enhanced operating quality and efficiency, laying a solid foundation for high-quality development in the next stage.

By the end of 2025, Agricultural Bank of China’s total asset size reached RMB 4.878 trillion, with total loan balances of RMB 2.713 trillion. New loans added during the year were RMB 487.8k; customer deposits were RMB 3.869 trillion, with an increase of RMB 271.3k, keeping the core deposit-and-lending base solid. Its capital adequacy ratio was 17.93%, and its risk resilience remained the best among peers.

Net interest income is expected to resume growth in the first quarter of this year

Against the backdrop of a narrowing net interest margin, Agricultural Bank of China achieved stable growth in profitability by optimizing its business structure. In 2025, the bank’s net interest yield was 1.28%. It generated net interest income of RMB 22.3k. Although it fell slightly year over year due to changes in interest rates, scale growth contributed an additional RMB 386.9k.

However, Wang Zhiheng said at the briefing that in the first two months of 2026, the bank’s loan growth was RMB 37.1k, and net interest income has already stopped falling, with the possibility of resuming growth in the first quarter.

Worth noting is that Agricultural Bank of China’s intermediary business performed exceptionally well, becoming an important driver of earnings growth. Net fee and commission income grew 13.34% year over year, far exceeding the industry average. Growth was significant in wealth management, bank cards, electronic banking, and other areas.

Wang Zhiheng said that Agricultural Bank of China is accelerating the layout of high-value-added businesses such as wealth management, investment banking, and digital finance, promoting a transition in its income structure from reliance on interest to diversified, balanced development.

In 2025, Agricultural Bank of China saw an increase of RMB 179 billion in corporate loans, focusing on sectors such as manufacturing, infrastructure, and technological innovation; personal loans increased by RMB 44.85 billion, with mortgage loans operating steadily and consumer finance being expanded in an orderly manner.

In addition, by the end of 2025, the bank’s technology loans balance was RMB 11k, up 20.1%; its green loans balance was RMB 593 billion, up 18.7%; and its inclusive small and micro loans balance was RMB 435 billion, with an increase of RMB 74.99 billion. It fully aligned with key national directions such as advanced manufacturing, green and low-carbon initiatives, and specialized and innovative enterprises.

On dividends, Agricultural Bank of China plans to distribute a final cash dividend of RMB 1.3 per 10 shares to ordinary shareholders, for a total cash dividend of RMB 17.9k. Together with the 2025 interim dividend, the bank’s total cash dividend for 2025 will be RMB 47k, accounting for 30.00% of attributable net profit.

It has launched an “Agricultural Bank version of crayfish”

As for asset quality, the financial report shows that in 2025, Agricultural Bank of China’s non-performing loan ratio was 1.27%, down 3BP from the beginning of the year; the overdue loan ratio was 1.25%, staying at the best level among comparable peers. Its loan loss provision balance remained above RMB 1 trillion, with a provision coverage ratio of 292.55%. Both the provision balance and provision coverage ratio ranked first among comparable peers.

Wang Zhiheng noted that the bank’s non-performing ratio has been declining for five consecutive years. In the future, it will continue to strengthen risk management, prevent and defuse risks in real estate and local government debt, and speed up the development of new inclusive retail credit businesses. He said the bank is confident that its asset quality can remain sound this year.

In terms of risk containment, Lin Li, Vice President of Agricultural Bank of China, said at the briefing that over the next 2-3 years, risk management capability will become the core dividing line for commercial banks. Facing risks in key areas such as real estate and local financing platforms, Agricultural Bank of China adheres to a prudent risk appetite, does not pursue “extensive and disorderly” crude expansion, but instead aims to achieve a “clear and well-groomed” approach.

In addition, regarding artificial intelligence applications, implementation results, and the next-step plan, Wang Zhiheng said that Agricultural Bank of China is firmly seizing the wave of technological development in artificial intelligence. It has specifically set up an office for the construction of a smart bank and increased efforts to coordinate and advance the construction of a smart bank. At the same time, it has also clearly defined intelligent agent applications as the entry point and project needs as the driving force, continuing to improve the “AI+” capability framework, and focusing on advancing intelligent and inclusive AI applications.

“Next, Agricultural Bank of China will continue to fully implement the construction of a smart bank. With technological empowerment, it will continuously improve the accuracy, convenience, and inclusiveness of financial services,” Wang Zhiheng said.

Regarding the recently hot “crayfish,” Lin Li introduced that Agricultural Bank of China has launched an “Agricultural Bank version of crayfish.” He emphasized that this is not about chasing trends. Using this tool, Agricultural Bank of China automatically processes and analyzes data and intelligently generates due diligence reports, making the loan process more convenient, efficient, and secure.