AgBank's net profit for the first half is expected to increase by about 40% over 46 billion

Every reporter Yu Xi from Beijing today is only two days away from ABC's 15th A-share listing. Yesterday (July 12) around 8 o'clock in the evening, the daily economic news reporter by car in Beijing Dong Dan's agricultural headquarters, the whole building still has a lot of office lights.　　The reporter then dialed an agricultural bank insider's phone, the other end of the phone came a noisy background, this should be the ABC and underwriting team are racing against the clock to make a final effort for the listing.　　"The Elephant Dances" is unfolding. Although the report is 1 months away from the official announcement, according to insiders close to AgBank's IPO, AgBank is expected to achieve net profit of more than 46 billion yuan in the first half of this year, up about 40% per cent year-on-year. Agricultural Bank of the first half of the savings deposit increase close to 440 billion yuan, the top four rows.　　And the increase in public deposits is also reported to be only lower than ICBC. In terms of loan size, the growth advantage of AgBank's county-level business is initially apparent. The first half of the county loan balance added more than 210 billion yuan, up from the beginning of the year as high as 18%, higher than the full bank loan growth rate of 6.4%. Driven by strong growth in county-level loans, AgBank's loans were 11.2% higher than at the start of the year, up 1% from the average growth rate in the three-line construction.　　In the roadshow, AgBank's management has stressed that its county-level operations have become an important engine for loan growth in the context of a slowdown in industry lending growth as a result of policy adjustments. Previously, analysts have questioned the profitability of AgBank's intermediary business. But according to the people said, AgBank's first half of the fee income to achieve about 23 billion yuan, an increase of 60%. Some analysts pointed out that AgBank's vast network advantage, or the main reason for the rapid growth of Agricultural Bank harvest intermediary business.　　According to ABC's prospectus, the bank has a huge network of 23,000 outlets, 320 million customers and 2.6 million public clients, while its insurance agency business, which is based on dot and customer growth, accounts for 1/3 of the total business in the four major lines.　　ABC's management in the roadshow used to "dance to the Elephant" to describe the development prospects of AgBank after the listing, from the first half of the data, the music seems to have played ahead. The interim report of the bank shares in the "China Daily" market for each listed bank will be released in August. Analysis points out that the first half of this year and even the entire year bank profits will maintain a high rate of growth. And the interim results to the good and Agricultural Bank of the market is expected or will sweep the haze of the atmosphere, driving the bank stocks from the bottom of the valuation breakthrough.　　As a A-share market, the largest weight plate, the recovery of bank stocks will drive the entire market to attack. The increase in the size of new loans, the rise in spreads and the maintenance of low credit costs are seen by the market as a major factor in the banks ' beautiful transcripts. The 1 quarterly report shows that listed banks have achieved net profit of 142.1 billion, up 31.8% year-on-year, and 47.9% per cent on a month-on-month increase, far exceeding last year, and in the past decade only below 05 and 08.　　At present, the average net assets yield of the banking sector is 22.6%, which is at a higher level in history. FirstFirst on the scale of the loan, the first 5 months of this year, new loans 4 trillion, whether the new size or growth rate is still significantly higher than the same period before 09, the current pace of lending, the full year to achieve 7.5 trillion new loans is not a problem, the scale of bank loans will be 18.7% growth, the size of the driving force remains strong. At the margin level, although the expected decrease in the net spreads, it still contributes positively to bank profits. The tightening of lending policies this year is helping to improve the bargaining power of banks. From the loan structure, last year, a large number of low interest rate of bill financing in the first half of this year was significantly compressed, the long-term trend of loans is obvious, structural adjustment brought about the rise in yields. As a result of the adjustment of national industrial policy, loan demand will be affected, and the degree of loan tension is reduced, which is expected to increase the interest rate difference by increasing the bargaining power.　　Second-quarter spreads may be the highest, the second half of the trend will slow down, but throughout the year still can bring 6%~8% contribution to bank profits. The third is the maintenance of low credit costs. Banks ' credit costs have been lower in the first half of this year as a result of the continued decline in non-performing loan balances and non-performing loan rates, combined with a sharp increase in banks ' reserve for asset impairment last year. Banks in the 1 quarterly earnings-bearing assets growth rate of about 22%, interest income increased by 23%, but net profit growth rate of 31.8%, the extra part mainly by the provision of the reduction contribution.　　At the end of last year, the bank's average allocation coverage reached 170%, a rough calculation of more than 180% in the first quarter, and a two-quarter collective pressure, so that banks ' profits would continue to grow at a high rate.　　While the regulator's request to "appropriately raise the risk weight of financing platform companies ' loans" will increase the bank's second half of the provision of local financing platform loans, but will not fundamentally change the situation of low credit costs. Western "New Deal" policy dividend in support of Agricultural Bank listed, the state released a lot of policy "dividend."　　Anecdotal estimates, these "dividends" can at least bring the agricultural Bank of China about 5 billion yuan of real income. In recent days, the country has established a strategy of deepening the development of the West, which the industry believes will bring new opportunities to ABC. The analysis points out that AgBank, as a large state-owned bank, will directly benefit from this strategy for sustainable economic growth. At the same time, as the most extensive and strong network of commercial banks in the vast counties, especially in the western regions, ABC will benefit far more than other large banks. The Western development of the "New Deal" will also become the Agricultural Bank's business development and profit growth of the next engine.　　The strategy was also seen by the industry as an additional "policy dividend" for investors, as the strategy was announced after ABC had basically finished pricing and allocating shares. According to insiders close to AgBank's IPO, ABC will carry out financial services with its existing network in the western region. Specific services include large financing arrangements, related project settlement, follow-up project financing. She said that with the improvement of living standards and economic development in the West, as a broad network in the west of the agricultural silverLine, it will be possible to benefit from this historical development opportunity.