Competitive Strengths

The year 2025 marked the conclusion of China’s 14th Five-Year Plan, standing out as a year in which Agricultural Bank of China made new headway and took new strides towards high-quality development. In 2025, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we upheld and strengthened the overall leadership of the Party, conscientiously implemented the decisions and plans of the Communist Party of China (“CPC”) Central Committee and the State Council, and strove to advance reform and innovation in management and services, with a focus on preventing risks and promoting high-quality development. As a result, we successfully accomplished our annual objectives and plans, bringing all the tasks set out in our 14th Five-Year Plan to a satisfactory conclusion. 

Our business operations maintained a momentum of steady growth, with operational foundation further consolidated. Operating efficiency improved steadily. We sustained positive growth in terms of both net profit and operating income. Specifically, we achieved net profit of RMB292.0 billion and operating income of RMB725.1 billion, representing a year-on-year increase of 3.3% and 1.9%, respectively. Asset quality remained sound. The non-performing loan ratio was 1.27%, representing a decrease of 3 BPs as compared to the end of the previous year. The overdue loan ratio was 1.25%, maintaining a relatively favorable level among comparable peers. The overdue loan ratio was lower than the non-performing loan ratio, reflecting strict asset quality classification standards. The balance of allowance for impairment losses on loans was above RMB1 trillion, and the allowance to nonperforming loans was 292.55%, remaining sufficiently resilient against risks. Aggregate financing grew reasonably. Total assets amounted to RMB48.8 trillion, of which total loans were RMB27.13 trillion, representing an increase of RMB2.23 trillion as compared to the end of the previous year. Financial investments reached RMB16.3 trillion, representing an increase of RMB2.47 trillion. The stability of deposits continued to improve. The balance of all-system deposits from customers amounted to RMB38.69 trillion, representing an increase of RMB3.71 trillion as compared to the end of the previous year. We recorded a RMB and foreign currency deposit deviation ratio of 0.58%, which outperformed comparable peers and were the only one to keep the ratio below 3% for seven consecutive quarters. 

We delivered more targeted and solid financial services for rural revitalization. The growth rate of loans in County Areas remained higher than that of the Bank’s total loans. We fully supported allaround rural revitalization and integrated urban-rural development. The balance of loans in County Areas reached RMB10.9 trillion, representing an increase of 11.0% as compared to the end of the previous year and accounting for 41.0% of domestic loans. We have been awarded the highest rating, “Excellent”, in the regulatory assessment of serving rural revitalization for five consecutive years, the only one among twenty national financial institutions to have made this achievement. We continuously strengthened financial support for key fields. Focusing on key areas and weak links, such as ensuring China’s food security, rural industries, rural construction and rural reform, we made ongoing efforts to unleash the effectiveness of financial services for strengthening agriculture, benefitting farmers, and boosting rural prosperity. The balance of loans in fields related to ensuring a stable supply of grains and major agricultural products, loans to rural industries, and loans to rural construction stood at RMB1.21 trillion, RMB2.66 trillion and RMB2.46 trillion, respectively, with growth rates of 20.3%, 19.5% and 9.6% as compared to the end of the previous year, which were 11.4, 10.6 and 0.7 percentage points higher than the growth rate of the Bank’s total loans, respectively. We maintained a ledger for each county and adopted county-specific policies to ensure effective financial services for key areas receiving assistance. The balance of loans to 160 key counties receiving national assistance for rural revitalization reached RMB480.0 billion, representing an increase of 9.9% as compared to the end of the previous year. We further expanded the coverage of services. We relocated 179 outlets in townships and established 1,742 Huinong service stations, further expanding service coverage in townships. The  

number of monthly active users of mobile banking in County Areas was 0.13 billion. The balance of Huinong E-loan reached RMB1.84 trillion, representing an increase of 22.9%, with our financial services for rural households becoming more accessible and available. 

We intensified our efforts to provide higher-quality and more efficient services for the real economy. We strengthened services for stabilizing investment and boosting consumption. Focusing on key areas such as the implementation of major national strategies and security capacity building in key areas, as well as large-scale equipment upgrades and consumer goods trade-in programs, we increased financing supply to help consolidate and expand the momentum of economic recovery and growth. The scales of financing we provided for project lists of new types of policy-backed financial instruments, technology transformation and equipment upgrades, and the implementation of major national strategies and security capacity building in key areas, etc., all maintained a leading position among comparable peers. We vigorously supported the endeavour to boost consumption and actively enriched the scenarios of consumption finance. The balance of personal consumption loans, including credit card balances, reached RMB1.45 trillion, representing an increase of 9.0% as compared to the end of the previous year. We fully supported the fostering of new quality productive forces. We introduced innovative financial products and service mechanisms to help achieve greater self-reliance and strength in science and technology. The balance of technology loans was RMB4.7 trillion, representing an increase of 20.1% as compared to the end of the previous year. We have signed cooperation agreements with all cities included in the pilot program for asset investment companies (AIC) equity investment and set up a total of 27 pilot funds. The balance of loans granted to the manufacturing industry was RMB3.72 trillion, with a growth rate of 14.6%. We steadily advanced the development of green finance. We deeply implemented the green finance strategy, with the balance of green loans reaching RMB5.93 trillion, representing an increase of 18.7% as compared to the end of the previous year. We developed diversified green investment and financing businesses and issued RMB66.0 billion of green finance bonds in the domestic market, with the balance of green bond investments exceeding RMB150.0 billion. Our services in inclusive finance achieved new progress. The balance of inclusive loans amounted to RMB4.35 trillion, representing an increase of RMB749.9 billion as compared to the end of the previous year. The number of inclusive small and micro enterprise customers with outstanding loan balances amounted to 5.24 million, representing an increase of 0.66 million. The balance and increment of inclusive loans, as well as the number and increment of inclusive small and micro enterprise customers  

with outstanding loan balances, all ranked first among comparable peers. We stepped up support for the development of the private sector. The balance of loans granted to private enterprises was RMB7.57 trillion, representing an increase of RMB1.03 trillion as compared to the end of the previous year, and the number of customers with outstanding loan balances was 8.23 million, representing an increase of 0.78 million as compared to the end of the previous year, with both the balance of loans and the number of customers with outstanding loan balances ranking first among comparable peers. We made ongoing efforts to improve the pension finance service system. We continuously helped promote the coverage of the three pillars system of pension finance. The number of users of physical and electronic social security cards reached 0.28 billion and 0.21 billion, respectively, both ranking first among peers. The scale of pension funds under entrusted management amounted to RMB388,134 million, representing an increase of 22.6% as compared to the end of the previous year. The number of private pension customers ranked among the top in the banking industry. We strengthened multi-tiered industrial support, with the balance of loans to the elderly care industry reaching RMB23.16 billion. 

We consolidated and strengthened our customer base and the business development drivers. We continuously enhanced our customer base. Upholding the customer-centered principle, we continued to build and improve the service system aligned with the needs of customers in the new era, with our customer services capabilities steadily improving. The total number of retail banking customers reached 896 million, ranking first among peers, and the number of corporate banking customers exceeded 13 million. We strengthened online financial service capabilities. The number of monthly active users of mobile banking exceeded 276 million, maintaining a leading position among comparable peers. We continued to enrich the scenario ecosystem, with a total of 65 thousand high-frequency internet scenarios. We further improved wealth management capabilities. The scale of wealth management products steadily increased, with the balance of RMB2,151.3 billion as at the end of 2025. The agency distribution business maintained a positive growth momentum. The scale of agency insurance remained the largest among comparable peers, with a growth rate of 17.9%, and the sales volume of agency distribution of funds increased by 20.4%. We accelerated the smart banking construction. We vigorously promoted the AI technology, and major application projects of smart banking have been implemented and delivered tangible results. The model of digitalization became more mature, significantly improving customers’sense of gain and satisfaction. The “onsite + remote” investigation model reduced the number of customer managers’ onsite visits by 225 thousand person-times, streamlining business processes. We promoted the new customer service system at outlets, cutting transaction processing time at counters by over 20% and further enhancing service quality and efficiency. 

We reinforced risk prevention and control. Our risk management was robust and effective. Always taking risk prevention and control as our primary task, we prevented and mitigated various types of risks in a robust, orderly and effective manner, strengthened management and control of overdue loans, and refined policies for the disposal of non-performing loans, continuously consolidating sound asset quality. We integrated compliance management requirements into the whole process of business development, further reinforcing safeguards for case prevention and compliance. We continuously strengthened market risk prevention and control. We focused on proactive market risk management, accurately grasped trends in interest rate and exchange rate movements, and optimized the maturity structure of investments and financing in a timely manner. We leveraged the supporting and empowering role of the market risk management platform, effectively improving the level of automated management. We ensured the stable operation of various types of market businesses, and continued to improve the precision of risk management and control of market businesses. We improved technological security capabilities. We completed the mainframe migration and decommissioning which was the largest-scale project involving the largest number of customers in the banking industry. Under the distributed architecture, the average daily transaction volume processed by the core system on working days reached 1,736 million, with the daily transaction peak volume of 2,183 million, and the availability rate of core system services reached 100%, with the operation maintaining smooth. 

We continued to enhance corporate values. In 2025, we maintained a momentum of steady growth and achieved leading profit growth among comparable peers in core businesses, striving to create greater value for investors. We continuously refined the corporate governance system, integrated Party’s leadership into every aspect of corporate governance, and kept improving the effective corporate governance system with the Bank’s features. The members of the Board of Directors performed their duties diligently, and the Board of Directors operated effectively and compliantly. We were awarded the “Best Practice Case for the Board of Directors of Listed Companies” once again. In active response to market and investor concerns, we improved information disclosure and investor relations management, and strengthened two-way interaction with the capital market. In 2025, the Bank ranked first among comparable peers in terms of indicators such as the increase of A Share price and H Share price, the growth of market capitalization, the price-to-book (P/B) ratio and the price-to-earnings (P/E) ratio, contributing to the steady and positive momentum of the capital market through our own sound value growth. In order to deliver returns to investors actively and share them with the fruits of development, the Board of Directors proposed to distribute a cash dividend of RMB1.300 (tax inclusive) per 10 shares to all ordinary shareholders in addition to the interim dividend, bringing the full-year dividend for 2025 to RMB2.495 (tax inclusive) per 10 shares with a total amount of RMB87,321 million (tax inclusive), maintaining the cash dividend ratio above 30%. 

Looking back on 2025, amidst a complex and ever-changing operating environment, we adhered to doing the “hard but right things” and strove to remain resilient beyond economic cycle. The achievements of the past year were rooted in the solid foundation of China’s long-term economic growth, fundamentally attributed to the strong leadership of the CPC Central Committee, benefited from the trust and support provided by regulators, shareholders, and all sectors of society, and were made possible by the hard work and dedication of all cadres and employees of the Bank. I would like to express sincere gratitude on behalf of the Board of Directors! 

The year 2026 is the first year of the 15th Five-Year Plan period. A new era calls for new responsibilities, and a new journey demands new actions. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will further strengthen the leading role of Party building, foster and practice a correct understanding of what it means to perform well, and stay true to the founding mission of finance for serving the real economy. We will deepen the implementation of strategies, pool the synergy for development, and strive to break new ground for the Bank’s high-quality development. We will provide high-quality financial services to help consolidate and expand the positive momentum of steady economic growth, and contribute to making a good start in implementing the 15th Five-Year Plan.