Agricultural Bank of China (EK7) Q2 2026 Earnings Report

The call highlighted broad, measurable progress across profit, revenue, deposits, financing, asset coverage and digital/fintech initiatives, with management also candidly outlining areas needing continued attention (inclusive retail asset quality, deposit repricing, real-estate/platform risk and AI controls). The positive operating and funding trends, strong coverage ratios and a raised interim dividend outweigh the flagged challenges, while management set concrete mitigation actions.

The call guided that management expects to sustain H2 momentum while prioritizing rural revitalization, strict risk control, deposit franchise strength and AI‑driven digitalization: H1 metrics cited included net profit +5.8% YoY, operating income +11.2% YoY, return on net assets 10.14%; financing growth in H1 exceeded CNY3.0 trillion (loans & bonds increases ~CNY2.2 trillion; local/foreign currency loans +CNY1.69 trillion, +6.2%; bond investment +CNY1.52 trillion, +9.6%); average daily core deposits CNY29.59 trillion (+CNY3.67 trillion, +10.2%); NIM 1.28% (+2 bp q/q) and deposit funding cost 1.13% (‑21 bp from year‑end); NPLs declined (cited a 2 bp drop to ~1.25%), provision coverage ~290.1% with provisions >CNY1 trillion and watch‑list coverage 138%; inclusive loans CNY4.88 trillion (+~CNY432 billion) serving 5.58 million MSMEs; customer counts: 905 million personal, 14 million corporate, 76.98 million cardholders; other highlights: AIC pilot funds 31, fintech investments >CNY5.7 billion, cross‑border RMB settlement CNY1.96 trillion, average daily distributed core trading CNY1.96 billion (+17%); the board raised the interim dividend to 31% (CNY1.297 per 10 shares). Management reiterated plans to capture deposit repricing benefits and further lower liability costs, target ~40% country‑level business contribution while adding county outlets, accelerate AI/smart‑bank adoption (with controls for AI risk), optimize credit structure and preserve strong capital/asset‑quality buffers.