Agricultural Bank of China

THE IPO OF AGRICULTURAL BANK OF CHINA   Polina Pchelnikova   Analysis  and   secure 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 fast-growing(prenominal) county areas which accounted for almost 50% of the gross domestic product and this percentage is likely to rise. amply plight urban presence Minimal presence in coarse mainland China Biggest customer base 16.5% market handle in retail deposits and leading retail fees High dough 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 lucre and gainfulness improvement (asset quality management, NIM, volume reaping, efficiency) Preferential state policies (subsidies, lower deduction and rewards for agricult ure related loans, infrastructure etc.) West, Central areas - all-important(a) demand orientated enterprises =>less risk related to export descend due to a fallout in external milieu chore issues for ABC: 1.? 2.? 3.? 4.? 5.

? higher(prenominal) trust risks in certain loans Weaker operable efficiency in county areas Asset quality metrics tuck 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 fa! rmers tho supporting fast growing agriculture development, SMEs and tertiary industries higher(prenominal) cost base, lower L/D ratios, lower positivism But profitability is likely to rise due to fatser growth of lending in county areas and bigger reduction in extension costs Possible alternatives   Overview: ¨?? ¨?? Progressive reduction in credit costs may significantly boost its profitability rummy positioning...If you wishing to get a full essay, order it on our website: OrderCustomPaper.com

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