Agricultural Bank of China

THE IPO OF AGRICULTURAL jargon OF CHINA   Polina Pchelnikova   Analysis  and   sound judgement  of  the   current  situa2on   Characteristics of ABC: 1.? 2.? 3.? 4.? 5.? 6.? 7.? Third-largest vernacular by assets in china The most extensive coverage in fast-growing county areas which accounted for or so 50% of the GDP and this fate is likely to intensify. Fully enlist urban presence negligible presence in usual China Biggest customer tooshie 16.5% market share in retail deposits and leading retail fees High earnings aesthesia to NIM and sentiment be Strengths: 1.? 2.? 3.? 4.? 5.? Ideally positioned to capture the accelerated GDP produce in Chinas county areas liquid (2009 50% L/D) revolt faster NIM expansion Highest delta in earnings and gainfulness improvement (asset tone of voice management, NIM, volume reaping, efficiency) Preferential acres policies (subsidies, impose deduction and rewards for cultivation related loans, infrastructure etc.) West, interchange areas - essential demand orientated enterprises =>less risk related to merchandise decrease due to a fallout in outside environment chore issues for ABC: 1.? 2.? 3.? 4.? 5.

? higher(prenominal) course credit risks in certain loans Weaker useable efficiency in county areas addition quality metrics put aside behind peers LGFV loans Preferential assert policies arent granted on perpetual basis Shareholders: ¨?? ¨?? ¨?? 39.21% MOF 40.03% Huijin 3.89% SSF (April 2010 private musical arrangement: RMB 15.5 bln for 10 bln shares) County China is non the akin as rural: ¨?? ¨?? ¨?? not providing micro loans to farmers nevertheless reenforcement fast growing cultivation development, SMEs and tertiary industries Higher live base, lower L/D ratios, lower favorableness barely lucrativeness is likely to rise due to fatser growth of change in county areas and bigger decrease in credit costs  executable alternatives   Overview: ¨?? ¨?? Progressive reduction in credit costs whitethorn significantly boost its profitability Unique positioning...If you wishing to cook a full essay, collection it on our website: Ordercustompaper.com

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