DBS: Agricultural Bank of China – Buy Target Price HK$3.40

Expect more balanced growth ahead

• 9M23 net profit to shareholders increased by 5% y-o-y to Rmb207bn, above market expectation due to strong loan growth and lower provision  
• Expect more balanced loan volume and pricing mix in FY24F, with NIM downward pressure to be lower than in FY23F 
• Expect slightly higher NPL ratio and credit cost in FY24/25F following the strong loan growth 
• Reiterate BUY with H-share TP revised down to HK$3.4