Latest news with #AgBank
Bloomberg
4 days ago
- Business
- Bloomberg
Moutai Emerges as Dividend Play With Yield Topping AgBank's
Kweichow Moutai Co. 's dividend yield has surpassed Agricultural Bank of China Ltd. 's for the first time, boosting the premium liquor maker's appeal to income investors despite slowing growth. Moutai's indicated net dividend yield stands at 3.9%, topping the 3.7% on AgBank's Shanghai-listed stock. The yield of China's top distiller has ticked higher on steady payout increases and a persistent share slump.
Bloomberg
04-04-2025
- Business
- Bloomberg
Trump Tariff's hurt regional, Canada banks but China's less so
Three keys for tariffs impact on financials Key drivers Big banks with $300 billion or more manufacturing loans China's Big Four banks appear to have modest exposure to the US export market, with each holding at least 2.2 trillion yuan ($300 billion) in manufacturing loans. Bank of China's 2.73 trillion yuan topped peers in 2024, followed by ICBC's 2.45 trillion, AgBank's 2.36 trillion and CCB's 2.17 trillion. The four's exposure was equivalent to 40% of China's medium- to long-term industrial loans (24.6 trillion yuan). Loans to manufacturers were 13% of the total at BOC, followed by 9% at AgBank and ICBC, and 8% at CCB. The other six Chinese banks we cover — two smaller state and four joint-stock lenders — jointly held 3.9 trillion yuan of such loans. Bocom's exposure reached 1.1trillion yuan vs. 500-670 billion yuan for the rest. Among the six, Everbright Bank and Bocom were more exposed than the others. Manufacturing loans, share of total lending Tariff risks to GDP, inflation expose banks growth US-imposed tariffs on Canadian goods and retaliatory measures could negatively impact macroeconomic trends, which were expected to drive 8% median Canadian bank profitability gains in 2025. The Bank of Canada noted a potential over 2% negative GDP impact in year one and risk of higher inflation. Many variables, including the length of tariffs, don't allow us to estimate the earnings impact to Canadian banks, we note that mid-single-digit loan and overall revenue-growth expectations for the group in 2025 leave little room for additional pressures. Lower GDP and reduced business investment could weigh on commercial loan growth and credit, accounting for 57% at BMO, 48% at National and less than 40% at peers. Higher inflation is a negative for consumers, potentially reversing a recent easing in debt service ratios. Uncertainty denting lending, business sentiment Trade spats are hampering a lending rebound that many regional banks were anticipating in 2025. Lending has historically carried a tight relationship with nominal GDP growth, while loan gains have trailed the underlying economic output amid soft demand and elevated interest rates. In 2024,lending was only up 2% for the industry despite GDP being up 5%. Business sentiment is receding amid policy uncertainty and tariff s that can upend supply chains and reduce economic activity. The NFIB Small Business Optimism Index has fallen to 100.7 in February after reaching 105.1 in December, the highest since 3Q18. Banks like PNC, Truist and Comerica had echoed the improved tone from commercial borrowers, but the positive sentiment hasn't translated to strong lending. Industry commercial growth looks flat in 1Q. P&C Insurers well positioned among financials US tariffs and potential retaliations pose several risks, yet P&C insurers' defensive nature leaves them solidly positioned among financial stocks in such an environment. Consensus EPS has yet to adjust, but we think there will be some manageable bottom-line impact. Tariffs should increase building-material expenses, driving up loss costs across all personal and commercial property lines. International lines like trade credit could also be affected. The most direct effect would likely be at auto insurers such as Allstate, Progressive and Geico, though there are mitigating factors. Lower interest rates would hurt investment income. Should tariffs spur a recession, premium growth will likely remain positive, given inelastic demand. Businesses would need to close to cancel policies and are unlikely or unable to reduce coverage.
Reuters
28-03-2025
- Business
- Reuters
China's AgBank 2024 profit rises 4.7%
BEIJING/SHANGHAI, March 28 (Reuters) - Agricultural Bank of China Ltd (AgBank) ( opens new tab reported on Friday a 4.7% rise in its 2024 net profit. Net profit last year totalled 282.083 billion yuan ($38.84 billion), compared to 269.356 billion yuan in 2023, AgBank said in a filing. The net profit in 2024 was above a median estimate from 15 analysts of 276.101 billion yuan. ($1 = 7.2635 Chinese yuan renminbi)
