Agricultural Bank of China

THE IPO OF AGRICULTURAL BANK OF CHINA   Polina Pchelnikova   Analysis  and   skilful judgement  of  the   current  situa2on   Characteristics of ABC: 1.? 2.? 3.? 4.? 5.? 6.? 7.? Third-largest bank by assets in chinaware The most extensive coverage in strong-growing county areas which accounted for almost 50% of the gross domestic product and this percentage is likely to rise. richly plight urban presence Minimal presence in coarse chinaware Biggest customer base 16.5% market deal in retail deposits and leading retail fees High gelt aesthesia to NIM and belief be Strengths: 1.? 2.? 3.? 4.? 5.? Ideally positioned to capture the faster GDP produce in Chinas county areas Liquidity (2009 50% L/D) drive faster NIM expansion Highest delta in winnings and gainfulness improvement (asset quality management, NIM, volume reaping, efficiency) Preferential state policies (subsidies, take down deduction and rewards for agriculture rela ted loans, infrastructure etc.) West, Central areas - indwelling demand orientated enterprises =>less risk related to export drop due to a fallout in external surround chore issues for ABC: 1.? 2.? 3.? 4.? 5.

? higher(prenominal) attribute risks in certain loans Weaker operable efficiency in county areas Asset quality metrics throw away behind peers LGFV loans Preferential state policies arent granted on perpetual basis Shareholders: ¨?? ¨?? ¨?? 39.21% MOF 40.03% Huijin 3.89% SSF (April 2010 private placement: RMB 15.5 bln for 10 bln shares) County China is non the same as rural: ¨?? ¨ ?? ¨?? Not providing micro loans to farm! ers notwithstanding supporting fast growing agriculture development, SMEs and tertiary industries higher(prenominal) cost base, lower L/D ratios, lower profitability But profitability is likely to rise due to fatser egression of lending in county areas and bigger reduction in reference book costs Possible alternatives   Overview: ¨?? ¨?? Progressive reduction in credit costs may significantly boost its profitability anomalous positioning...If you wishing to get a full essay, order it on our website: OrderCustomPaper.com

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