2019 Annual Results Presentation

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March, 2020

2019 Annual Results Presentation

IFRS

Hong Kong / Beijing

1


Disclaimer

1

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.

2


Performance Summary

31 Dec 2019 RMB 100MM 31 Dec 2018

2

Change

Net Interest Income 4,869 4,778 1.9%

Net Interest Margin（NIM） 2.17% 2.33% 0.16pps

Net Fee and Commission income 869 781 11.2%

Cost-to-income Ratio 30.49% 31.27% 0.78pps

Net Profit 2,129 2,026 5.08%

Basic Earnings per Share（RMB） 0.59 0.59 - -

Change

Total Assets 248,783 226,095 10.0%

Total Loans and Advances 133,602 119,407 11.9%

Total Liabilities 229,185 209,347 9.5%

Total Deposits 185,429 173,463 6.9%

Capital Adequacy Ratio 16.13% 15.12% 1.01pps

Tier 1 Capital Adequacy Ratio 12.53% 12.13% 0.4pps

NPL Ratio 1.40% 1.59% 0.19pps

Provision Coverage 289% 252% 37pps

Jan-Dec 2018 Jan-Dec 2019

3


Social Image and Market Impact Continue to Improve

Ranked as No. 3 in “Top

1000 World Banks 2019”

Up one places

Ranked as No. 3 in “Banking

500 2019”

Up three places

“Global Bank of the Year 2019”

Ranked as No. 36 in

“Fortune Global 500”

Up four places

4


Financial Performance

Business Strategy & Development

Business Forecast

4

5


Stable Growth in Scale

Total Assets Total Liabilities

119,407

133,602

226,095

248,783

2018 2019

Loans and Advances Total Assets

173,463 185,429

209,347 229,185

2018 2019

Deposits Total Liabilities

RMB 100MM RMB 100MM

Loan Growth

11.9% Deposit Growth

6.9%

6


Continuously Enhanced Profitability

Net Profit Growth Rate Ranked Among the Top

RMB 100MM

6

ROAA & ROAE

0.95% 0.93% 0.90%

14.57% 13.66% 12.43%

2017 2018 2019

ROAA ROAE

1,931

2,026

2,129

2017 2018 2019

Daily Average Balance of Interest-bearing Assets

Continued to Grow

193,679 205,416

224,608

2.28% 2.33%

2.17%

2017 2018 2019

Daily Average Balance of Interest-bearing Assets NIM

RMB 100MM

7


Stable Growth in Revenue

Stable Growth in Net Interest Income

RMB 100MM

4,419 4,778 4,869

2017 2018 2019

7

Rapid Growth in Net Fee and Commission

Income

729 781

869

2017 2018 2019

RMB 100MM

Rapid Growth in Emerging Businesses

196

252

2018 2019

89

101

2018 2019

256

302

2018 2019Bank Card

RMB 100MM

Internet Banking

Consultant Fee

8


32.96%

31.27%

30.49%

2017 2018 2019

1,770 1,872 1,912

2017 2018 2019

Cost under Good Control, Synergy in Revenue and Expense Growth

Stable Operating Expenses

RMB 100MM

8

Declining Cost-to-Income Ratio

9


Recovery

Write-off

Transfer

Asset-backed

Securitization

Offsetting

debts with

assets

Restructuring

Success of Three Year “Balance Sheet Project”，Asset Quality Continue

to Improve

Decline in Both NPL Balance and NPL Ratio

RMB 100MM

9

“The Scissors gap between NPLs”Turns

Negative Again

Multiple Initiatives to Dispose NPLs

1,940

1,900

1,872

1.81%

1.59%

1.40%

2017 2018 2019

NPL Balance NPL Ratio

Reached same level of peers 2,241

2,029

1,830 115%

107%

98%

2017 2018 2019

Overdue Loans Balance Overdue Loans/NPLs

RMB 100MM

Dispose

NPLs RMB

119.5 billion

10


Continuously Enhanced Risk Buffer

Prudent Loan Provisions

RMB 100MM

10

Provision Level Well-ahead of Peers

929

1,301

1,318

0.91%

1.15%

1.04%

2017 2018 2019

Provision Charges Credit Cost

RMB 100MM

208%

252%

289%

3.77%

4.02% 4.06%

2017 2018 2019

Provision Coverage Allowance to loans

11


“Capital Strengthen Plan”Achieved Significant Success

Capital Adequacy Ratio

11

10.63%

11.55% 11.24% 11.26%

12.13% 12.53%

13.74%

15.12%

16.13%

2017 2018 2019

CET1 Capital Adequacy Ratio Tier 1 Capital Adequacy RatioCapital Adequacy Ratio

Private Placement

100 Billion Yuan

Tier-2 Capital Bonds

120 Billion Yuan

Perpetual Bonds

（ Tier 1 Capital ）

120 Billion Yuan

Reset Pricing for

Preference Shares

40 Billion Yuan

12




Business Forecast

12

13


2018 2019

Corporate Business: Remarkable Achievements in Supporting

Real Economy

Rapid Growth in Corporate Deposits

RMB 100MM

13

Support Industrial Transformation Strength the Financial Service to Private

Enterprises

Added 2,18

billion Yuan

RMB 100MM

Serve for Major Strategy and Key Project

Yangtze River

Delta

Development

“One Belt One

Road”

Guangdong-Hong

Kong-Macao

Greater Bay Area

Beijing-Tianjin-

Hebei Region

Yangtze River

Economic

Zone

61,476 65,144

70,958

2017 2018 2019

Comprehensively Implement

the “New 28 Rules” raised

by Central Government to

support private enterprises.

Help private enterprises to

Relive the difficulties in

financing and support them

in development.

662.9 bn

Yuan of

new loan

in 2019

Yellow River Basin

Environmental Protection

and High Quality

Development

1,406

1,761

2018 2019

Happiness Industries

Private Enterprises Loans

14


2,398

3,205

2018 2019

11,234

14,040

2018 2019

1.75

2.01

2018 2019

1.03

1.20

2018 2019

Retail Business: good momentum of development

Stable Growth in Personal Deposits

RMB 100MM

14

Rapidly Growing Personal Loans

Reinforced Management Capability in Private

Banking

RMB 100MM

10,000 Units, RMB100MM

Improved Competitiveness of Credit Card

Business 100MM Cards, RMB Trillion

Cards Issued Purchase Volume AUM of Private Banking Size of Existing Customized WM

Products

92,465

97,920

106,119

57.1% 57.1%

57.9%

2017 2018 2019

Personal Deposits Personal Deposits as % of Total Deposits

40,003 46,659

53,925

37.3% 39.1%

40.4%

2017 2018 2019

Personal Loans Personal Loans as % of Total Loans

15


2018 2019

Inclusive Finance: Good Development and Bright Future

Increased Volume and Expanded Areas in

Inclusive Finance 10,000 Accounts, RMB100MM

15

Increase in Inclusive Financial Loan Meets the

Requirements for Reduce RRR two tranches

72.3

3,744 110.9

5,923

Inclusive Finance Customer

Numbers

Inclusive S&M Enterprises

Loan Amount

2018 2019

22.1%

Percentage of increment

22.1% of

increment as of

new loans,meets

the requirements

for Reduce RRR

two tranches

Internet

Financing

Model

E-Commerce

model

Regional

Cluster Model Supply-

Chain

Financing

Model

Credit Enhancement by

Government Model

Industrial

Cluster Model

Differentiation of

small & micro

credit system

Further

improveme

nt of small

& micro

credit

system

Discovery of

Set up online

small credit

system

Promote to set

up small &

micro credit

analysis system

Relief the cost pressure in S&M Enterprises

Financing

1.2pps

Decline in Overall Financing Cost

Well achieved the

tasks of “Loan

Growth higher than

30%, overall

financing cost lower

1%”, raised by

State Council

Innovative Model and System

16


73,806 79,606

2018 2019Deposits

40,059

45,531

2018 2019Loans

6,627

4,838 3,300

820 872

7,330

5,640 3,942

1,198 1,986

Loans For County Area

Urbanization

"Anjiadai" Loans For rural

households

Loans for Poverty Alleviating New Type of Agricultrial

Business Entity Loans

Hui Nong e-Loans

2018 2019

County Business: Good Growth Momentum

Rapid Growth in County Deposits and Loans

RMB 100MM

16

Overall Contribution of County Business Keep

Increasing

Remarkable Achievements of Financial Services in Key Areas

RMB 100MM

65.6

%

Increase in County Personal

Deposits as % of Increase in

all personal deposits

3.08%

2.81%

County The BankInterest Spread of Deposits and Loans

Higher

27

BP

17


Internet Finance: Promote Comprehensive Digitizing, Continuously Strengthened Online Business Capability

17

Strengthened Bases of Online Corporate

Financial Services

互联网服务三农“一号工程”

Strengthened Online Personal Banking

2.6

3.1

2018 2019

49.0

61.8

2018 2019

100MM Accounts, RMB Trillion

Trading Volume of

Online Personal

Accounts

Number of Online Personal

Accounts

17

Continued Transformation and Upgrading

Online Credit

Inclusive Financial E-

Loans

Personal

E-Loans

Corporate

E-Loans

Hui Nong E-Loans

Product System Formed in Online Credit

Business

互联网服务三农“一号工程”

93

184

2018 2019

0.13

1.24

2018 2019

100MM Accounts, RMB Trillion

Trading Volume of Online

Corporate Accounts

Number of Online

Corporate Accounts

2,173

5,894

2018 2019

RMB 100MM

Online Credit

Balance

18


Acceleration in Digitized Transition, New Breakthrough in

Innovative Transition

Speed up the construction of

online financing system

including Hui Nong E-Loan,

Micro E-Loans, Digital online

Loan and etc. Our online credit

balance was over RMB589.4

billion as of the end 2019.

The Financial Brand of“ABC

Intelligence +” Preliminary

Formed. Many services projects

including intelligence

government affairs, county,

education, medical,

transportation, finance chain,

property management and

canteen have gained positive

feedback from customers.

Promote the construction of

open system. Speed up the

research and output of platform

products, promote the

application of government

affairs related service platform.

Established business

relationship with several E-

commerce platform and

corporations.

To Build up a top client-experience

intelligent Bank with best digital Ecology in

Sannong Inclusive Financing Area

Synergy in the five key

targets

Let the clients enjoy the service in

need anytime and anywhere

Focus on “Sannong” Service

• Apply in “Sannong” area

comprehensively

• Consolidate and elevate our leading

position in county “Sannong”aspect

Focus on intelligence Bank

• Improve the intelligence reformation in

business management of key area

• Forge digitalized gene in in-depth level

Build up an intelligent

marketing system

Promote synergy and

development in all the

channels

Build up an open ecology

system

Rebuild the risk

management model

Build up new generation of

digitalized cloud platform

Focus on client experience

19


1573

2,044

2934

2017 2018 2019

International Business and Comprehensive Operations: Improved

Cross-border Multi-functional Service Capabilities

19

Stable Development of Subsidiaries with

Comprehensive Business RMB 100MM

Enhanced Cross-border Service Capabilities

USD 100MM

Global Network Coverage

Total Assets

1,222

1,330 1,408

2017 2018 2019Note： Including ABC-CA Fund, ABCI, ABC Leasing, ABC Insurance,

ABC Investment and ABC Wealth Management Total Assets of Overseas Institutions

Asia Pacific

• Hong Kong Branch（1995）

• ABC International Holding（2009）

• China Agricultural Finance（1988）

• Singapore Branch（1995）

• Seoul Branch（2012）

• Dubai DIFC Branch（2013）/ Dubai Branch（2016）

• Tokyo Branch（2013）

• Sydney Branch（2014）

• Hanoi Branch（2017）/ Hanoi Representative Office （2012）

• Taipei Representative Office （2015）

• Macao Branch（2017）

Africa

• Sino-Congolese Bank（2015）

Europe

• Frankfurt Branch（2013）

• UK Subsidiary（2011）/London Branch（2017）

• Luxembourg Subsidiary （2014）/Branch（2015）

• Moscow Subsidiary（2014）

Americas

• New York Branch（2012）

• Vancouver Representative Office

（2012，Upgrading to Branch）

• São Paulo Representative Office （2017）

20




Business Forecast

20

21


Business Forecast

20

Serve The Real

Economy

Focus on Continuous

Reform

Comprehensively

promote Digital

Transformation

Deepen structural Reform of

Financial Supply-Side: Increase

credit and depth of structural reform.

Serve national key strategy and high

quality development of

manufacturing well.

Give Priority to Developing

Agriculture and County Area: Improve comprehensiveness and

professionalism of “San Nong”

financial services.

Improve Financial Service on

Poverty Alleviating

Strengthen Financial Service

on Private Enterprise, Small and

Micro Business, Consumer

Sector : Accelerate innovation of

product and service model, develop

personalized, differentiated and

customized products.

Implement hierarchical

management：Implement

comprehensive hierarchical

management and assessment in

first-class branch, provincial city

branch and county branches,

strength en management,

enhance precision of

authorization and restructure of

mechanism, improve

effectiveness of resources

allocation.

Implement Technical and

Product Innovation

Management System Reform:

Promote construct new IT

technology structure, explore

agile research and development

model, strengthen data

supporting capability.

Strengthen market

operation capability of

subsidiaries.

According to the ideas

of ”networking, digitizing,

intelligentzation,

liberalization”, promote

comprehensive digital

transition and deep online

offline integration of

products, marketing,

channel, operation, risk

management. To build a

smart bank providing first-

class client experience,

with best digital

ecosystem in “San Nong”

inclusive finance realm,

and fight for “rebuild an

Agriculture Bank of

China”.

Control Financial

Risk

Stable and Improve

Credit Assets Quality:

Adhere to strictly loan

management and risk

classification, control risks on

key sectors including implicit

local government debt, group

clients and property sector. Overcome challenges of

Disposal of Non-Performing

Assets: Focus on key problem

and innovation means,

accelerate disposal of existing

non-performing loan. Strengthen monitoring on

financial market, prevent

risks strictly.

Strengthen

Innovation-driven

Strategy

Accelerate Strategic

Reform of Retail Business

and Networks:

Continuously improve the

mobility, sceneries and

intelligence of retail

business , accelerate the

intelligence of branches

and the merge of online

offline remote channel. Further Improve

Innovation of Procedure:

Follow the trend of provide

more financial service

online, launch more online

investment, financing,

payment and settlement

products.

Further achievements in serve the real economy

Further improvements in risk Control

Further enhancements in business results

Further achievements in key area reform

Further breakthrough in business transformation

22


Thank you!

Q&A

22

2019 Annual Results Presentation

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