2021 Interim Results Presentation - ibank.abchina.com

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

August,2021

2021 Interim Results Presentation

IFRS

Beijing

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Disclaimer

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.

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Performance Summary

30 Jun 2021RMB 100MM 31 Dec 2020

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Change

Net Interest Income 2,834 2,670 6.1%

Net Interest Margin (NIM) 2.12% 2.20% 0.08pps

Net Fee and Commission income 482 442 8.8%

Cost-to-income Ratio 24.54% 24.64% 0.10pps

Net Profit 1,228 1,092 12.5%

Basic Earnings per Share (RMB) 0.34 0.30 0.04

Change

Total Assets 286,524 272,050 5.3%

Total Loans and Advances 165,393 151,704 9.0%

Total Liabilities 263,900 249,943 5.6%

Total Deposits 219,266 203,729 7.6%

Capital Adequacy Ratio 16.23% 16.59% 0.36pps

NPL Ratio 1.50% 1.57% 0.07pps

Provision Coverage 275% 261% 14pps

Jan-Jun 2020Jan-Jun 2021

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Financial Performance in the First Half of 2021

Business Strategy & Development

Business Plan for the Second Half of 2021

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Loan Growth 9.0% Deposit Growth 7.6%

RMB 100MM RMB 100MM

Stable Growth in Business Scale

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Steady Growth in PPOP

Net Profit Regained to The Same Level as 2019H1 Stable Growth in Operating Income

Continuous Improvement of Profitability

RMB 100MM

RMB 100MM

RMB 100MM

Growth 12.5%

Growth 7.8%

Growth 7.8%

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Rapid Growth in Net Interest Income

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Slight Decline in Net Interest Margin

Continuous Decline in Loan Yield

Slight Growth in Average Cost of Deposit

Steady Growth Momentum in Net Interest Income

RMB 100MM

Growth 6.1%

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Stable Growth in Net Fee and Commission

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Steady Growth in Emerging Businesses

Well-performed Intermediary Business

Credit CardBusiness

Investment Banking Business

Internet-FinanceBusiness

RMB 100MM

Growth 8.8%

Growth 71.7%

Growth 13.0%

Growth 17.7%

Growth 21.9%

Distribution of Funds Business

RMB 100MM

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Moderate Growth in Operating Expenses

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Decrease in Cost-to-Income Ratio

Improving Cost-to-Income Efficiency

Growth8.0%Decline 0.1pps

RMB 100MM

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Continuous Improvement of Asset Quality

Stable Decline in NPL Ratio

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Decline in Overdue Loans Balance and Rate

Diversified Channels of Non-Performing Assets Disposal

Recovery

Write-offs

Bulk Transfer (Including Asset Securitization)

Restructuring

Offsetting Debts with Assets

RMB 100MM RMB 100MM

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Continuous Enhancement of Risk Resistence and Compensation Capability

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Provision Coverage Rate Remains High

Unit: %RMB 100MM

Prudent and Solid Loan Provision

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Capital Adequacy Ratio Sustains High Level

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Issuance Plan for RMB120 billion Perpetual Bonds

Issuance of RMB120 billion Tier-2 Capital Bonds increased the capital adequacy ratio by 0.77%

Issuance of RMB120 billion Perpetual Bonds increased the Tier-1 capital adequacy ratio by 0.77%

Dividend-Rate Reset of RMB40 billion Preferred Shares increased the Tier-1 capital adequacy ratio by 0.26%, equivalently

Issuance of RMB120 billion Perpetual Bonds increased the Tier 1 capital adequacy ratio by 0.71%

Issuance of RMB40 billion Tier-2 Capital Bonds increased the capital adequacy ratio by 0.24% Note: The increase in capital adequacy ratios in

each year is calculated based on the risk-weighted assets by the end of each year

Dividend-Rate Reset of RMB40 billion Preferred Shares increased the Tier-1 capital adequacy ratio by 0.24%, equivalently

Reinforced Achievement of “Capital-Strengthen Plan”

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Rapid Growth of Corporate Loans

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Serve the Key Industries of Real EconomyStrengthening Support to Private Enterprises

Expanding Corporate Financial Scenes

Loans to Private Enterprises with Outstanding Loan Balance

Number of Private Enterprises with Outstanding Loan Balance

Supported the major national strategies. To fully serve major regional development strategies in Beijing-Tianjin-Hebei region, Guangdong-Hong Kong-Macao region, Yangtze River Delta region, Chengdu-Chongqing Region and Hainan Free trade Port, and etc., 497.7 billion loans were issued in 2021H1.

Supported the key areas of the real economy. Outstanding loans balance of strategic emerging industries and growing modern service industries, and manufacturing industry increased by RMB262.1 billion and RMB196.3billion, respectively, in 2021 H1.

Number of Frequent Internet Scenes for Corporate Business

The amount o f f requent internet scenes for corporate b u s i n e s s r e a c h e d 4 1 . 6 thousand.

Promoted green finance. To carry out green finance specific activities, promote collaboration with Carbon Trade Exchange, accelerate green financial system and brand building, the balance of green credit increased by RMB249.0billion over the previous year.

Corporate Business: Being a Major Bank to Serve the Real Economy

313.67 billion Increased

20 thousad Increased

RMB 100MM 10,000 UnitsGrowth 10.7%

Growth

54.2%

2.70

4.16

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Rapid Growth in Retail Deposits

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Stable Increase in Retail Loans

Further Improvement in Private Banking ServicesContinuous Improvement in Competitiveness of Credit Card Business

Retail Business: Strengthened the Strategic Cornerstone Position

RMB 100MM RMB 100MM

10,000 Accounts, RMB 100MMUnit: 100 million Units, RMB trillion

Growth 12.0%Growth 32.6%

Growth 14.2%

Growth 8.9%

Consumption made by Credit Card

Credit Card Issuance Volume

Number of Private Banking Customers

Growth 7.7%

Growth 10.0%

Asset Under Management by Private Banking

16,960

18,656

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Record Historical High Growth in County Deposits and Loans

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Continuous Increase in Profit Contribution

Implementation of The Digital Village Project

Units; 10,000 Units

38.2%

27 BP Higher

Deposits Loans

Strengthening the Innovation of Sannong Financial Products

Signed county for rural collective "three-capital" management platform

Opened account of the collective-economy village organization

Ø Formulating opinions on developing key products for rural revitalization in 2021, determining 19 key products of Sannong, 10 key products with regional characteristics for replication and promotion, and compiling a manual for key promotion products that serve rural revitalization.

Ø Expanding the number of Sannong product innovation bases, and setting up 5 Sannong product innovation bases in Shandong, Zhejiang, Xinjiang and other branches.

Ø By the end of June, the bank had 245 exclusive credit products for rural revitalization, including 28 bank-wide products and 217 branch characteristic products.

County Finance: Provide Comprehensive Financial Services in Key Areas Relating to Rural Revitalization

RMB 100MM

Growth 6.8%

Growth 11.4%

Growth 70.0%

Growth 69.2%

County Deposit Increment as % of Bank-Wide Deposit Increment

Deposit and loan spreads

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Poverty alleviation: Pushing Forward Rural Vitalization Based on Poverty Alleviation

Expansion in Loans to Poverty-Alleviated Areas

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Reinforcing and Expanding the Achievement of Poverty Alleviation

Significant Achievements of Financial Services in Key Areas

Balance of loans in key counties for national poverty alleviation

By the end of June, the loan balance of the 832 pover ty alleviation counties reached RMB1417.3 bi l l ion, wi th an increase of RMB134.2bill ion f rom prev ious year and an increase of 10.5%, which was 1.5 percentage points higher than the average increase in loans of the whole bank, and 134.2% of the annual new loan target was completed.

Ø Constant and in-depth promotion of targeted assistance. Formulating opinions on the targeted assistance, introducing work plan for 2021 targeted assistance, selecting outstanding cadres, arranging special assistance funds, helping attract investment, training cadres from targeted assistance counties, and act ively bui lding several demonstration sites for Rural Revitalization.

Ø Create a new situation by cooperating between the Eastern and the Western branches. Improving the coordination mechanism and optimizing the coordination between the Eastern and the Western branches. The Eastern branches actively integrated into the cooperation of the local government between the East and the West, providing comprehensive financial services such as financing and settlement for industrial projects, introduce projects, cultivate industries, and sent talents to western regions.

RMB 100MM

RMB 100MM

Growth10.5%

Growth10.1%

Growth 43.8%

Growth 23.7%

Growth 66.3%

Growth 12.2%

Rural Infrastructure Construction Loan

Rural Industrial Development Loan Huinong E-Loan

New-Type Agricultural Entities Loan

Corporate Loans relating to Food Security Loan

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Increasing Size and Varietyin Inclusive Finance

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Creating an Inclusive Financial Service System

Continuing to Ease the Situation of High Financing Cost for Small and Micro Enterprises

Refined the digital risk control system for inclusive finance business

Constructed a differentiated credit policy system

Continually upgraded the digital marketing management system for inclusive finance business

Improved the digital product system of inclusive finance business

Deepened the inclusive financial service system supported by “Sannong + S&M Enterprises” with our own features

The annualized interest rate of cumulative loans was 4.09%, a year-on-year decrease of 17 b a s i s p o i n t s , m e e t i n g t h e requirements of “two increases and two controls ” of the China B a n k i n g a n d I n s u r a n c e Regulatory. The Central Bank’s RRR cut o f inc lus ive loans continued to meet the second-tier requirement.

17 basis points

decrease year-

on-year

Annualized Interest Rate of Cumulative Loans

Unit: %

Inclusive Finance: Accelerating Support to Small and Micro Enterprises for Quality Development

10,000 Units, RMB 100MM

Growth 26.5% Growth 30.4%

The Number of Inclusive Finance Customers with Outstanding Loans

Inclusive Loan to Small and MicroEnterprises

4.26

4.09

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Green Finance: Built Leading Brand in Green Finance through “Carbon Peak, Carbon Neutrality” Strategy

Steady Development of Green Credit Business

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Committed to Build a Green Bank

Loan Balance of Green Credit Business

Continuous Increase in Green Bond Investment

Green Bond Investment

Green Financing Provided to Enterprises

Engrain Green Concept into All Categories of Products & Services of Investment Banking Business

Ø Focusing on “carbon peak, carbon neutrality” strategy, underwriting the first batch of carbon neutral bonds and the first batch of sustainable development-linked bonds in the market.

Ø Participating in funding the Hubei "Carbon Peak" Fund. Actively participating in fund operation and project investment as a shareholder of the National Green Development Fund.

Ø Through Green Syndicated Loans, Green M&A Loans, Green Bonds, etc., Providing financing over RMB120 billion to enterprises, investing the fund in environmental governance, clean energy, transportation and other fields.

RMB Trillion

RMB 100MM

RMB 100MM

Growth 16.4%

Growth 14.9%

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10,000 People-time

Internet Finance: Significant Achievements in Digital Services for Real Economy, and Effective Improvements of Customer Experience

Steady Improvement in Scene-Based Financial Service Capabilities

Rapid Growth in Online Financing

10,000 Users

The Number of Enterprise Users of Mobile Banking

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Significant Improvement in Online Customer Service Capabilities

Continuous Improvements of Remote Intelligence and Self-service Customer Experience

MAU of Mobile Banking

A Hundred Million Users

ABC E-Loan Balance

Customers Served by Online Customer Representatives

Customers Served by Robots

Growth 20.0%

Growth 21.6%

Growth 38%

Growth 375.8%

Growth 33.3%

RMB Trillion

10,000 Units

The Number of Internet Scenes

The Number of MAU of Mobile

Banking

The Number of Financial-scene-

driven Customers

1.0

1.2

1,399

6,656

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Steady Development of Comprehensive Operation of Subsidiaries

Enhanced Cross-Border Financial Service Capability Rapid Growth of International Settlement

Progressive Development of Cross-Border RMB Business

Cross-border RMB Business Volume

Total Assets of Overseas Institutions

Note: Including ABC-CA Fund, ABCI, ABC Leasing, ABC Insurance , ABC Investment and ABC Wealth Management

Total Assets of Comprehensive Operation Subsidiaries

Growth 35.4%

Growth 19.1%

Growth 14.4%

RMB trillion

USD 100MM

RMB 100MM

Comprehensive and International Service : Continuously Improving Service Capabilities

USD 100MM

International Settlement Volume

Growth 10.0%

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Serve the Rural Revitalization

Promote the Digital Transformation

Strictly Control Financial Risk

Serve the Real Economy

Deepen the System & Mechanism

Reform

u To Become a Leading Bank in Serving Rural Revitalization

u To Make a Significant Contribution in Serving the Real Economy

u To Keep Promoting the “Ten Major Projects" of Digital Transformation

u To Promote the System & Mechanism Reform and Delicacy Management

u To Consistently Concentrate on Risk Management and Compliance

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Thank You!

Q&A

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Documents

2021 Interim Results Presentation - ibank.abchina.com