|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||9.85 - 9.90|
|52 Week Range||9.21 - 12.39|
|Beta (3Y Monthly)||1.17|
|PE Ratio (TTM)||4.33|
|Forward Dividend & Yield||0.65 (6.52%)|
|1y Target Est||N/A|
Moody's Investors Service has assigned (P)A1/(P)P-1 local and foreign currency senior unsecured medium-term note (MTN) programme ratings to Agricultural Bank of China Limited (ABC), Singapore Branch. At the same time, Moody's has assigned an A1 rating to the proposed US-dollar denominated floating rate senior unsecured notes to be issued by ABC, Singapore Branch. The outlooks on the notes' rating and ABC, Singapore Branch are stable.
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at...
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. China’s biggest banks responded to government demands to help spur a slowing economy. The cost of their efforts has been disappointing profits and shrinking loan margins.Repeated calls by policy makers for banks to advance more credit to the struggling private sector and small businesses have taken a toll on the industry’s financial performance this year. Lending margins declined at the nation’s top lenders in the first half of the year, while some firms posted weaker-than-expected profit for the period.Policy makers are trying to address the needs of the economy, which grew at its slowest pace in three decades last quarter, without damaging the country’s largest banks. But for lenders, meeting authorities’ demands may mean losing favor with analysts and investors.“What’s going to end up in the medium-and-longer term is you’re still going to have the margin pressure from the mispricing of risk,” Grace Wu, a senior director at Fitch Ratings, said in a Bloomberg Television interview on Thursday. “Ultimately that’s going to have asset quality pressure down the road.”Agricultural Bank of China Ltd. said Friday that its first-half profit rose 4.9% to 121.4 billion yuan ($17 billion). Analysts on average estimated net income of 120.3 billion yuan, according to a Bloomberg survey. Bank of China Ltd. reported profit that increased 4.5% to 114 billion yuan, compared with consensus estimates of 112.2 billion yuan.In response to government requirements, the big banks increased loans to small businesses by 35% in the first six months, while cutting their financing costs by more than the 1 percentage point that authorities wanted, according to the industry regulator.Industrial & Commercial Bank of China Ltd., the nation’s largest bank, is facing pressure on its net interest margin, President Gu Shu said Thursday after the earnings announcement. China Construction Bank Corp.’s margin may drop by one or two basis points in the second half, Chief Financial Officer Xu Yiming said at a briefing in Beijing on the same day.Lenders will face further challenges, analysts have said, after China’s central bank changed how it calculates the nation’s one-year benchmark rate. While the effort is intended to liberalize interest rates and ease borrowers’ financing costs, net interest margins across the industry will be squeezed by the reform, Postal Savings Bank of China Co. said last week.Even as the moves are likely to win political points for the firms, offering loans to riskier companies at lower rates has raised concerns, and investors have never been so downbeat.The MSCI China Banks Index underperformed the MSCI China Index by about 13% this year as valuations of mainland lenders approach historic lows. ICBC and CCB saw their China-listed shares fall on Friday.What Bloomberg Intelligence Says“Changes to how China’s central bank sets lending rates, including revamping the loan-rate benchmark, may usher in an extended period of muted returns and margins for the nation’s banks.”\-- Analyst Francis Chan\-- Click here for the researchChanges to how China sets the one-year benchmark were first used on Aug. 20. Most of the impact will surface and hit banks’ profit in 2020, according to Citigroup Inc. analysts.While Chinese banks are cheaply valued, that doesn’t mean their stocks will soon rise, Ismael Pili, co-head for Asian bank research for CreditSights Singapore, said in a Bloomberg Television interview on Friday.“The problem is margin pressure, which is the predominant driver of their profitability,” he said. “If that’s coming down then overall profitability will likewise come down.”(Adds Agbank and Bank of China earnings results in fifth paragraph.)\--With assistance from Heng Xie.To contact Bloomberg News staff for this story: Jun Luo in Shanghai at email@example.com;Alfred Liu in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Mamudi at email@example.com, Ryan LovdahlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- It’s hard not to see HSBC Holdings Plc’s exclusion from China’s interest-rate reform as a snub.Hong Kong’s biggest bank wasn’t included in a list of 18 lenders that will participate in pricing for a new loan prime rate that the People’s Bank of China will start releasing Tuesday. The roster includes foreign lenders Standard Chartered Plc and Citigroup Inc., which have smaller China businesses than HSBC.It’s the latest sign that all may not be well in HSBC’s relations with Beijing, after a turbulent period that has seen the departures this month of Chief Executive Officer John Flint and the bank’s Greater China head, Helen Wong. HSBC shares fell 13% in Hong Kong this year through last Friday, compared with a decline of less than 1% in the benchmark Hang Seng Index.London-based HSBC, which is also Europe’s biggest bank, has made China a key plank of its growth strategy. The lender is the third-largest corporate bank in the country by market penetration, according to data provider Greenwich Associates LLC. That places it ahead even of China Construction Bank Corp. and Agricultural Bank of China Ltd., two of the nation’s big four state-owned lenders. Standard Chartered and Citigroup don’t rank among the top five, according Gaurav Arora, head of Asia Pacific at Greenwich.It could be argued that HSBC’s focus on big corporate clients means it’s less attuned to the loan market for small and medium-size enterprises that are the focus of China’s changes to its interest-rate regime. That would be a stretch, though. Corporate banking is a scale game. And even though StanChart may have a greater preponderance of smaller clients, HSBC surely has many similar customers. Citigroup’s inclusion makes more sense: It’s the only U.S. bank in China with a consumer-lending business that spans credit cards to SME loans. The list also includes less influential domestic lenders such as Bank of Xian Co. Those searching for reasons why HSBC may have fallen into China’s bad books may point to Huawei Technologies Co. Liu Xiaoming, China’s ambassador to the U.K., summoned Flint to the embassy earlier this year to interrogate him over the bank’s role in the arrest and prosecution of Meng Wanzhou, the chief financial officer of Huawei, the Financial Times reported Monday. The then-CEO told him HSBC had no option but to turn over information that helped U.S. prosecutors build a case against Meng, the FT said. On Aug. 9, an HSBC spokeswoman denied that Wong’s departure as Greater China head was linked to any issue involving Huawei, pointing out that she announced her resignation before Flint’s departure. Still, the bank has faced criticism in China’s state-owned media over its role in the case. The way HSBC helped the U.S. Department of Justice acquire documents concerning Huawei was unethical, the Global Times reported previously, citing a source close to the matter. The bank was likely to be included in China’s first “unreliable entity” list of companies that have jeopardized the interests of Chinese firms, it said.The timing of China’s interest-rate snub won’t do anything to quell jitters, coming a day after Cathay Pacific Airways Ltd. CEO Rupert Hogg resigned amid criticism from Chinese regulators over its stance on employee participation in Hong Kong’s protests. Beijing is becoming more muscular in its attitude to the city’s unrest and foreign-owned businesses aren’t being spared. In an increasingly politicized environment, even a business that’s been around for 154 years will have to tread carefully. To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Agricultural Bank of China Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
On Monday, Industrial & Commercial Bank of China Ltd., Bank of China Ltd., China Construction Bank Corp. and Bank of Communications Co. posted higher net income. Including Agricultural Bank of China Ltd., which reported last week, rises at the big five clustered in a range from 4.1 percent to 4.9 percent. At the same time as profit climbed, nonperforming loans as a ratio of total lending dropped – though overall levels of bad debt increased.
Investing.com - Bad loans at China's four largest lenders grew at the fastest pace since 2017 in the first quarter, Bloomberg reported citing financial statements.
* AgBank Q1 net profit up 4.3 pct on-year, below estimates * Non-performing loan ratio 1.53 pct end-March vs 1.59 pct end-Dec (Adds milestone, bullet points) SINGAPORE/BEIJING, April 26 (Reuters) - Agricultural ...
SINGAPORE/BEIJING, April 26 (Reuters) - Agricultural Bank of China Ltd (AgBank) , the country's third-largest lender by assets, reported on Friday a 4.3 percent rise in first-quarter net profit, missing ...
April 25 (Reuters) - Shanghai Jinjiang International Travel Co Ltd: * SAYS IT HAS SOLD ITS ENTIRE 14.87 MILLION A-SHARES IN AGRICULTURAL BANK OF CHINA BETWEEN APRIL 19 AND APRIL 24 Source text in Chinese: ...
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over tim...
* AgBank's Q4 net profit down 5.4 pct, below estimates * NPL 1.59 pct at end-Dec vs 1.6 pct end-Sept * Net interest margin at 2.33 pct vs 2.35 pct end-June (Adds milestone, earnings details) BEIJING/HONG ...
BEIJING/HONG KONG, March 29 (Reuters) - Agricultural Bank of China Ltd (AgBank) , the country's third-largest lender by assets, reported on Friday a 5.4 percent drop in fourth-quarter net profit. AgBank's ...
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A shift was inevitable, with the stock market still flagging after sinking into a bear market last year. Yi Huiman, chairman of Industrial and Commercial Bank of China Ltd., will succeed Liu Shiyu as chairman of the China Securities Regulatory Commission, the state-run Xinhua News Agency announced Saturday, confirming an earlier report by Bloomberg News. No CSRC chairman has lasted more than three years.
Pressured by everything from cheap passive funds to burdensome regulations, big asset managers have been pinning their future on China’s growing $15 trillion fund industry. Officials even permitted foreign fund managers and investment banks to control their China joint ventures. Last month, China made a new rule requiring banks to spin off their wealth-management products into subsidiaries.
It’s strange that President Xi Jinping appears to be working toward the same end. The risk for any economy approaching China’s level of development is that it gets ensnared in the middle-income trap. Latin America, the former Soviet Union and the largest Middle Eastern countries have never managed to close the gap with the U.S., Europe and Japan that opened up a century ago.
Large banks such as Agricultural Bank of China Limited (HKG:1288), with a market capitalisation of HK$1.4t, have benefited from improving credit quality as a result of post-GFC recovery, leading to Read More...
Agricultural Bank of China Limited (HKG:1288) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the Read More...