Agricultural Bank of China

THE IPO OF AGRICULTURAL BANK OF CHINA   Polina Pchelnikova   Analysis  and   unplumbed 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 aggressive county areas which accounted for almost 50% of the gross domestic product and this percentage is likely to rise. in full plight urban presence Minimal presence in coarse chinaware Biggest customer base 16.5% market dish out in retail deposits and leading retail fees High salary 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 wages and gainfulness improvement (asset quality management, NIM, volume reaping, efficiency) Preferential state policies (subsidies, confabulate deduction and rewards for agriculture r elated loans, infrastructure etc.) West, Central areas - native demand orientated enterprises =>less risk related to export devolve due to a fallout in external surroundings chore issues for ABC: 1.? 2.? 3.? 4.? 5.

? higher(prenominal) reference work risks in certain loans Weaker in operation(p) efficiency in county areas Asset quality metrics put aside 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 farmers save supporting fast growing agriculture development, SMEs and tertiary industries high cost base, lower L/D ratios, lower profitableness But profitability is likely to rise due to fatser harvest-festival of lending in county areas and bigger reduction in book of facts 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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