Investment Rating - The investment rating for Postal Savings Bank is "Buy" [6] Core Views - The bank reported a revenue of 348.8 billion yuan for 2024, representing a year-on-year growth of 1.83%. The pre-provision profit reached 123 billion yuan, up 5% year-on-year, while the net profit attributable to shareholders was 86.5 billion yuan, a slight increase of 0.24% [1][14] - The bank has proactively adjusted its savings agency fee rates for the first time since its listing, aiming to optimize its liability structure and reduce interest costs. The comprehensive agency fee rate for 2024 decreased from 1.08% to 1.04%, resulting in a reduction of agency fees by 3.5 billion yuan [2][3] - Non-interest income has supported revenue growth, with net interest income increasing by 1.53% year-on-year. The net interest margin for 2024 was 1.87%, down 14 basis points from the previous year. Other non-interest income grew by 15.15%, driven by a 30.89% increase in investment income [3][4] Summary by Sections Financial Performance - For 2024, the bank's operating income and net profit attributable to shareholders grew by 1.83% and 0.24%, respectively. The growth in revenue was primarily supported by an increase in non-interest income [3][14] - The bank's net interest income rose by 1.53%, while the net interest margin decreased to 1.87%, reflecting a decline in both asset yields and funding costs [3][4] - The bank's total assets and loan amounts reached 17.1 trillion yuan and 8.9 trillion yuan, respectively, with year-on-year growth of 8.64% and 9.38% [13] Asset Quality - The non-performing loan (NPL) ratio stood at 0.90% at the end of Q4 2024, with a provision coverage ratio of 286.15%. The NPL ratio for personal loans was 1.28%, showing a slight increase [11][12] - The bank's credit cost for 2024 was 0.34%, a decrease of 1 basis point year-on-year. The NPL generation rate was 0.84%, down 1 basis point from the previous year [12] Dividend Policy - The bank declared a cash dividend of 2.616 yuan per 10 shares for 2024, resulting in a dividend payout ratio of 30% [1]

Investment Rating - The investment rating for Postal Savings Bank is "Buy" [6] Core Views - The bank reported a revenue of 348.8 billion yuan for 2024, representing a year-on-year growth of 1.83%. The pre-provision profit reached 123 billion yuan, up 5% year-on-year, while the net profit attributable to shareholders was 86.5 billion yuan, a slight increase of 0.24% [1] - The bank has proactively adjusted its savings agency fee rates for the first time since its listing, aiming to optimize its liability structure and reduce interest costs. The comprehensive agency fee rate for 2024 decreased from 1.08% to 1.04%, resulting in a reduction of agency fees by 3.5 billion yuan [2] - Non-interest income has supported revenue growth, with net interest income increasing by 1.53% year-on-year. The net interest margin for 2024 was 1.87%, down 14 basis points from the previous year. Other non-interest income grew by 15.15%, driven by a 30.89% increase in investment income [3][4] Summary by Sections Financial Performance - For 2024, the bank's operating income and net profit attributable to shareholders grew by 1.83% and 0.24%, respectively. The growth in revenue was primarily supported by an increase in non-interest income [3] - The bank's net interest income rose by 1.53%, while the net interest margin decreased to 1.87%. The bank's interest-earning assets and loan yield were 3.32% and 3.78%, respectively [3] - The bank's total assets and loan amounts at the end of Q4 2024 were 17.1 trillion yuan and 8.9 trillion yuan, reflecting year-on-year growth of 8.64% and 9.38% [13] Asset Quality - The non-performing loan (NPL) ratio at the end of Q4 2024 was 0.90%, with a provision coverage ratio of 286.15%. The NPL ratio for personal loans was 1.28%, showing a slight increase [11][12] - The bank's credit cost for 2024 was 0.34%, a decrease of 1 basis point year-on-year. The NPL generation rate was 0.84%, down 1 basis point from the previous year [12] Dividends and Shareholder Returns - The bank declared a cash dividend of 2.616 yuan per 10 shares for 2024, resulting in a dividend payout ratio of 30% [1] Future Outlook - The bank is expected to continue its stable performance, with a focus on increasing its loan-to-deposit ratio and maintaining strong asset quality. The long-term growth potential remains significant as a state-owned bank [13]

Financial Performance - Total assets reached RMB 17.08 trillion, an increase of 8.64% compared to the end of the previous year[32]. - Total customer loans amounted to RMB 8.91 trillion, reflecting a growth of 9.38% year-over-year[32]. - Net profit attributable to bank shareholders was RMB 86.48 billion, with a year-over-year increase of 1.36%[36]. - Operating income for 2024 is projected to be RMB 349.13 billion, up from RMB 342.91 billion in 2023, indicating a growth of 1.64%[36]. - Customer deposits reached RMB 15.29 trillion, a growth of 9.54% compared to the previous year[32]. - The capital adequacy ratio improved to 14.44%, up 0.21 percentage points from the previous year[32]. - The non-performing loan ratio increased to 0.90%, compared to 0.83% in the previous year[42]. - The net interest margin decreased to 1.87%, down from 2.01% in 2023[40]. - The cost-to-income ratio was reported at 64.01%, slightly improved from 64.87% in 2023[40]. - The bank's cash flow from operating activities was RMB 397.28 billion, significantly higher than RMB 263.34 billion in 2023[36]. Loan and Deposit Growth - The balance of agricultural loans amounted to RMB 2.29 trillion, while the balance of inclusive micro-enterprise loans was RMB 1.63 trillion[3]. - The balance of green loans reached RMB 781.732 billion, an increase of 22.55% compared to the end of the previous year[3]. - Total liabilities amounted to CNY 16.05 trillion, reflecting an 8.69% growth year-over-year[61]. - Individual deposits were RMB 13,628.54 billion, increasing by RMB 11,336.82 billion or 9.07%, driven by the bank's focus on high-quality deposit development[160]. - Company deposits rose to RMB 1,656.25 billion, a growth of RMB 1,978.10 billion or 13.56%, reflecting enhanced comprehensive financial service capabilities[160]. Customer Base and Services - The number of personal mobile banking customers reached 378 million, with monthly active users of mobile banking at 81.84 million[3]. - The bank served over 280 million elderly customers, with financial social security cards exceeding 120 million in circulation[3]. - The bank has nearly 40,000 operating outlets and serves over 670 million individual customers[16]. - The bank's electronic payment transaction scale was CNY 7.03 trillion during the reporting period[182]. - The bank's personal international settlement business recorded 160,400 transactions, with a total transaction amount of USD 362 million[181]. Digital Transformation and Innovation - The bank is accelerating its digital transformation, integrating business technology to create an open, shared, and intelligent operational support capability[21]. - The bank is actively advancing AI innovation applications to deepen the integration of financial services and technology[12]. - The company launched a new generation of corporate and credit card core systems, winning first-class awards in financial technology development for two consecutive years[62]. - The bank's electronic payment services have been enhanced through the launch of the "Smart Cube Customer Operation Platform" for precise marketing[182]. - The bank has implemented a digital banking section specifically for private banking clients, improving service accessibility and experience[186]. Risk Management and Compliance - The bank maintains a prudent risk management system, emphasizing comprehensive risk management capabilities[18]. - The bank's commitment to compliance and risk management ensured the quality of liability business development remained stable[157]. - The company aims to enhance its risk management framework and utilize big data and AI for better risk monitoring and control[65]. - The proactive credit granting model has been recognized with the People's Bank of China "Financial Technology Development Award" first prize[200]. Strategic Focus and Development - The bank's strategic focus includes technology finance, green finance, inclusive finance, pension finance, and digital finance to enhance overall competitiveness[20]. - The bank is focusing on high-quality development by upgrading its core systems and optimizing personnel configuration[12]. - The company aims to enhance its market positioning by focusing on differentiated growth in the financial market and actively adjusting investment strategies[112]. - The bank is committed to a long-term strategy, emphasizing the importance of sustainable development and risk management in a low-interest-rate environment[67]. - The outlook for 2025 indicates a continued focus on high-quality development and support for key areas such as new urbanization and rural revitalization[74]. Awards and Recognition - The company received multiple awards, including the Financial Technology Development Award (First Class) from the People's Bank of China and recognition as an excellent service case at the National Specialized and Innovative Conference[30]. - The company ranked 106th in the Brand Finance 2024 Global Banking 1000 and 12th in The Banker 2024 Global Most Valuable Brands by tier 1 capital[29]. Pension and Elderly Services - The bank has implemented a comprehensive promotion of the personal pension system, enhancing its service offerings[3]. - The establishment of 21 "Golden Sunshine Stations" in Beijing to provide comprehensive services for the elderly, addressing health, safety, learning, and asset planning needs[194]. - The active promotion of the "U Enjoy Future" personal pension service brand, enhancing the management of personal pension accounts throughout their lifecycle[193]. - The company has integrated a three-dimensional pension financial system focusing on pension finance, pension service finance, and pension industry finance[193].

Dividends and Financial Performance - The proposed cash dividend for the fiscal year 2024 is RMB 1.139 per 10 shares, totaling approximately RMB 11.294 billion (including tax) for the final dividend[4] - The total cash dividends for the year 2024 amount to RMB 25.941 billion (including tax), with RMB 2.616 per 10 shares distributed[4] - Operating income for 2023 was RMB 342.91 billion, showing a year-over-year increase of 1.81%[37] - Net profit attributable to bank shareholders was RMB 86.48 billion, slightly up from RMB 86.27 billion in the previous year[42] - The capital adequacy ratio improved to 14.44%, up 0.21 percentage points from the previous year[38] - The non-performing loan ratio stood at 0.90%, an increase from 0.83% in the previous year[48] - The net interest margin decreased to 1.87%, down from 2.01% in the previous year[46] - The bank's cash flow from operating activities was RMB 397.28 billion, significantly higher than RMB 263.34 billion in the previous year[42] - The bank's net profit attributable to shareholders for Q1 2024 was RMB 25,926 million, showing a solid performance[54] - Net profit reached CNY 86.72 billion, a slight increase of 0.34% year-over-year[85] Risk Management and Financial Stability - The bank has not identified any significant risks that could adversely affect its future development strategy and operational goals[5] - The bank maintains a prudent risk management system, enhancing its risk-leading capabilities[18] - The bank's non-performing loan ratio and provision coverage ratio remain at industry-leading levels, indicating strong asset quality[56] - The maximum single customer loan ratio was 7.98%, down from 13.34% in 2023, indicating improved risk management[50] - The bank aims to enhance its risk management framework, focusing on comprehensive risk control across all areas[62] - The bank's non-performing loan (NPL) ratio is projected to be 0.90% for 2024, with an NPL generation rate of 0.84%, maintaining excellent asset quality[71] Technology and Digital Transformation - The bank is actively advancing its technology-driven financial services, focusing on AI innovation applications to enhance integration with financial market operations[12] - The bank is accelerating its digital transformation, integrating business technology to create an open, shared, and intelligent business support capability[21] - The bank plans to accelerate its digital transformation, investing in technology to improve operational efficiency and service capabilities[61] - The bank's digital financial services received high satisfaction ratings, with mobile banking and online banking ranking first in industry assessments[68] Customer Service and Market Position - The bank has nearly 40,000 operating outlets and serves over 670 million individual customers[16] - The bank aims to enhance its service capabilities for inclusive finance, focusing on small and medium-sized enterprises' daily operational financial needs[21] - The bank aims to enhance its service capabilities by implementing a customer-centric approach and expanding its product offerings[59] - The company aims to build a first-class large retail bank characterized by customer trust, distinctive features, stability, safety, innovation, and exceptional value[22] Financial Growth and Assets - Total assets reached RMB 17.08 trillion, an increase of 8.64% compared to the end of the previous year[32] - Total liabilities amounted to RMB 16.05 trillion, reflecting a growth of 8.69% year-over-year[33] - Customer loans totaled RMB 8.91 trillion, with a year-over-year growth of 9.54%[35] - Customer deposits increased to RMB 15.29 trillion, marking a growth of 9.54% compared to the previous year[36] - The total Assets Under Management (AUM) reached RMB 16.69 trillion, with 富嘉 and 鼎福 customer growth of 17.60% and 26.91% respectively[70] Strategic Focus and Development Goals - The bank's strategic focus includes technology finance, green finance, inclusive finance, pension finance, and digital finance[20] - The strategic goal is to empower high-quality development through financial technology, accelerate business model transformation, and enhance value creation capabilities[23] - The bank plans to focus on technology finance, inclusive finance, and green finance to meet evolving market demands[58] - The bank aims to support the high-quality development of industrial clusters and high-tech parks through its financial services[12] Awards and Recognition - The company ranked 106th in the Brand Finance 2024 Global Banking 1000 and 12th in The Banker 2024 Global Most Valuable Brands by tier 1 capital[29] - The company has received multiple awards, including the Financial Technology Development Award (First Class) from the People's Bank of China and recognition as an excellent service case at the National Specialized and Innovative Conference[30] Retirement and Pension Services - The company launched a series of innovative retirement financial products, including retirement benefit calculators and family retirement accounts, enhancing the overall retirement service ecosystem[194] - The active promotion of the "U Enjoy Future" personal pension service brand has led to rapid growth in personal pension account management[199] - The company has developed a three-dimensional retirement financial system, focusing on retirement savings, service, and industry finance[199] - The company actively served over 280 million clients aged 55 and above, with more than 120 million financial social security cards in circulation[198]

Investment Rating - The report maintains a "Buy" rating for Postal Savings Bank of China (01658.HK) [5] Core Views - The bank's revenue for the first three quarters reached 260.3 billion yuan, a slight increase of 0.1% year-on-year, while net profit attributable to shareholders was 75.8 billion yuan, up 0.2% year-on-year, marking the first positive profit growth of the year [1] - The bank's asset quality remains stable, with a non-performing loan ratio of 0.86%, slightly up by 2 basis points from the previous quarter [2] - The bank's total assets reached 16.7 trillion yuan, growing by 6.5% year-to-date, with loans amounting to 8.8 trillion yuan, an increase of 7.7% year-to-date [3] Summary by Sections Performance - Net interest income increased by 1.5% year-on-year, with a net interest margin of 1.89%, slightly down by 2 basis points [1] - Fee and commission income decreased by 12.7% year-on-year due to the "reporting and operation integration" policy, impacting insurance agency income [1] - Other non-interest income rose by 0.5%, with total investment income and other gains amounting to 23.9 billion yuan, a year-on-year increase of 0.9% [1] - The cost-to-income ratio improved to 60.0%, up by approximately 0.8 percentage points year-on-year [1] Asset Quality - As of September, the non-performing loan ratio was 0.86%, with a slight increase in the attention ratio to 0.91% and overdue ratio to 1.11% [2] - The bank made provisions for impairment losses totaling 19 billion yuan, a decrease of 10.4% year-on-year [2] - The provision coverage ratio stands at 302%, down 24 percentage points from the previous quarter [2] Asset and Liability Management - Total assets reached 16.7 trillion yuan, with a loan balance of 8.8 trillion yuan, reflecting a steady growth [3] - Deposits amounted to 15 trillion yuan, up 7.5% year-to-date, with a significant increase in personal deposits contributing to the growth [3] Investment Recommendation - The report suggests that the bank's performance is showing signs of recovery, with expectations for stable growth throughout the year [3] - The bank is positioned as a "growth-oriented" state-owned bank with significant development potential, supported by a low loan-to-deposit ratio and strong asset quality [3]

Financial Performance - Net profit for the third quarter of 2024 was RMB 27,098 million, representing a 3.71% increase compared to the same period last year[5]. - The bank's net profit attributable to shareholders was RMB 75,818 million for the first nine months of 2024, showing a slight increase of 0.22% year-over-year[5]. - Basic and diluted earnings per share for the first nine months of 2024 were RMB 0.71, a decrease of 2.74% compared to the same period last year[5]. - The company achieved operating revenue of 260.57 billion yuan, a year-on-year increase of 0.07%, with net interest income growing by 1.46%[14]. - Net profit attributable to shareholders reached 75.82 billion yuan, reflecting a year-on-year growth of 0.22%[14]. - The bank's operating income for the first nine months of 2024 was RMB 260.567 billion, slightly higher than RMB 260.372 billion in the same period of 2023, showing a marginal increase of 0.1%[36]. - The bank's total comprehensive income for the first nine months of 2024 was RMB 77.452 billion, compared to RMB 75.572 billion in the same period of 2023, indicating an increase of 2.49%[37]. Assets and Liabilities - Total assets as of September 30, 2024, reached RMB 16,746,265 million, an increase of 6.48% compared to RMB 15,726,631 million at the end of 2023[4]. - Total liabilities increased to RMB 15,713,397 million, marking a 6.39% rise from RMB 14,770,015 million at the end of 2023[4]. - Shareholders' equity attributable to the bank's shareholders increased to RMB 1,030,960 million from RMB 954,873 million, representing a growth of about 7.9%[39]. - Total consolidated assets as of September 30, 2024, amounted to RMB 16,746,265 million[46]. Customer Loans and Deposits - Total customer loans amounted to RMB 8,779,373 million, reflecting a growth of 7.74% from RMB 8,148,893 million year-over-year[4]. - Customer deposits reached RMB 15,007,335 million, up 7.53% from RMB 13,955,963 million year-over-year[4]. - Retail loans increased by 5.69%, accounting for 40.31% of new loans, while corporate loans grew by 11.66%[14]. - Long-term loans to the manufacturing sector increased by 14.15% compared to the end of the previous year[15]. Cash Flow and Investments - The net cash flow from operating activities for the first nine months of 2024 was RMB 280,989 million, a significant improvement from a negative RMB 28,418 million in the same period last year[6]. - Cash flow from investment activities showed a net outflow of RMB 292,345 million, slightly higher than the RMB 287,877 million outflow in the previous year[41]. - Cash flow from financing activities resulted in a net outflow of RMB 68,224 million, contrasting with a net inflow of RMB 333,751 million in the same period last year[41]. Capital Adequacy and Risk Management - The core tier 1 capital adequacy ratio stood at 9.42% as of September 30, 2024, compared to 9.24% at the end of 2023[7]. - The capital adequacy ratio stood at 14.23% as of September 30, 2024, slightly up from 14.15% on June 30, 2024[42]. - The non-performing loan ratio remained at 0.86%, with a provision coverage ratio of 301.88% and a capital adequacy ratio of 14.23%[14]. - The bank's credit impairment losses for the first nine months of 2024 were RMB 18.934 billion, a decrease from RMB 21.149 billion in the same period of 2023, showing an improvement in asset quality[36]. Shareholder Information - The total number of ordinary shareholders as of the report date was 151,140, including 148,714 A-share shareholders and 2,426 H-share shareholders[8]. - China Postal Group holds 62,255,549,280 shares, representing 62.78% of total shares[9]. - Hong Kong Central Clearing (Agent) Limited holds 19,842,948,300 shares, accounting for 20.01% of total shares[9]. - The top ten shareholders do not participate in margin financing or securities lending, except for Hong Kong Central Clearing (Agent) Limited[11]. Strategic Focus and Development - The company emphasizes long-termism and sustainable development, focusing on high-quality development and differentiated competitive advantages[13]. - The company utilized "Look Ahead" technology to approve 11547 clients, a growth of 87.94%, with approved amounts reaching 1710.43 billion yuan, an increase of 257.99%[17].

Investment Rating - The investment rating for Postal Savings Bank is "Buy" [3][5]. Core Views - The adjustment of agency deposit rates is expected to significantly enhance profits by approximately 17%, with a projected reduction in agency fees by 13% to 100.6 billion yuan, resulting in a savings of 15.1 billion yuan [1][5]. - The new pricing scheme for agency fees will be linked to revenue growth, which is anticipated to stabilize the cost-to-income ratio in the long term and support steady profit growth [5][6]. - The bank's unique partnership with the postal system provides a strong deposit absorption capability, mitigating the impact of the fee reduction on deposit levels [5][6]. Summary by Sections Agency Fee Rate Adjustment - The agency fee rates for various deposit types have been significantly reduced, with the overall average rate dropping from 1.24% to 1.08%, a decrease of 16 basis points [1][8]. - Specific reductions include: - Demand deposits from 2.33% to 1.992% - Time deposits (1 year) from 1.10% to 0.999% - 2-year deposits from 0.35% to 0.149% - 3-year deposits from 0.10% to 0.020% [1][8]. Financial Projections - For 2023, the bank's total agency fees are projected to be 115.6 billion yuan, with a year-on-year increase of 10.4% despite a decrease in the average fee rate [2][6]. - The bank's net profit for 2024 is estimated at 88.8 billion yuan, reflecting a year-on-year growth of 2.9% [6][7]. Cost-to-Income Ratio - The cost-to-income ratio for 2023 is reported at 64.82%, with expectations for improvement following the fee adjustments [5][7]. - The bank aims to align the growth of agency fees with revenue growth, which is expected to enhance operational efficiency and profitability [5][6].

Financial Performance - Operating income for the first half of 2024 was RMB 176,919 million, a slight decrease of 0.13% compared to RMB 177,157 million in the same period of 2023[21]. - Net interest income increased to RMB 142,876 million, up 2.04% from RMB 140,305 million year-on-year[21]. - Net profit attributable to shareholders was RMB 48,815 million, a decrease of 1.51% from RMB 49,564 million in the first half of 2023[21]. - Total assets reached RMB 16,413,529 million, an increase of 4.37% from RMB 15,726,631 million at the end of 2023[22]. - Customer loans totaled RMB 8,658,762 million, up 6.25% from RMB 8,148,893 million at the end of 2023[22]. - The capital adequacy ratio decreased by 0.08 percentage points to 14.15% as of June 30, 2024, compared to 14.23% at the end of 2023[20]. - The average return on total assets for the first half of 2024 was 0.61%, down from 0.69% in the same period of 2023[23]. - The net interest margin decreased to 1.91% from 2.08% year-on-year[23]. - The cost-to-income ratio increased to 59.95% in the first half of 2024, compared to 57.36% in the same period of 2023[23]. - Cash and deposits with central banks amounted to RMB 1,308,757 million, a decrease from RMB 1,337,501 million at the end of 2023[22]. Risk Management - The bank actively manages various risks and has not identified any significant risks that could adversely affect its future development strategy[4]. - The non-performing loan ratio remained stable at 0.84%, with a provision coverage ratio of 325.61%, indicating strong risk mitigation capabilities[27]. - The bank's risk-weighted assets accounted for 52.48% of total assets, indicating a balanced asset quality management strategy[24]. - The bank's non-performing loan ratio remained stable, ensuring compliance with regulatory requirements and maintaining a strong risk management framework[84]. Technological Development - The bank is focusing on enhancing its technological capabilities and has initiated a series of actions to deepen the integration of business and technology[9]. - The new generation core business system has been fully launched, with self-developed systems accounting for 76.86%, an increase of 17 percentage points year-on-year[28]. - The bank's technology platform has delivered over 14,000 enterprise-level services across 932 business scenarios, driving continuous innovation in products and services[198]. - The bank has focused on IT talent development, establishing a multi-level training system to support the growth of technology professionals[199]. Customer Engagement and Services - The bank serves over 660 million personal customers through nearly 40,000 outlets, focusing on "three rural issues," urban and rural residents, and small and medium-sized enterprises[12]. - The bank's retail VIP customers increased to 25.5 million, a growth of 6.84% year-on-year, while high-net-worth clients rose by 13.34% to 5.62 million[30]. - The bank's debit card consumption reached CNY 3.89 trillion during the reporting period[101]. - The electronic payment transaction volume was CNY 3.57 trillion, reflecting the bank's focus on enhancing customer engagement through integrated marketing strategies[102]. Sustainable Finance and Social Responsibility - The bank is promoting inclusive finance through dedicated campaigns, emphasizing its commitment to social responsibility[9]. - The bank has issued its first "ESG Climate Finance Loan," exploring new models for local green finance[9]. - The balance of green loans reached RMB 693.099 billion, representing an 8.66% increase compared to the end of the previous year, continuing to outpace the average growth rate of various loans[175]. - The company is committed to supporting the United Nations' 2030 Sustainable Development Goals and the Paris Agreement, actively promoting sustainable finance and climate financing[175]. Financial Products and Innovations - The company launched a new personal pension service brand "U享未來" to promote long-term investment and value investment concepts[103]. - The company has launched the "Sci-Tech e-loan" product, focusing on new industries such as 5G, AI, and biotechnology, integrating financing services into procurement and sales scenarios[162]. - The company has established a multi-dimensional warning system for investment monitoring to support wealth managers in optimizing client portfolios[107]. - The company launched various green financial products, including small loans for photovoltaic equipment and small hydropower projects[177]. Subsidiary Performance - Postal Savings Bank's subsidiary Youhui Bank reported total assets of RMB 12.33 billion and net assets of RMB 4.38 billion, with a net profit of -RMB 192 million during the reporting period[167]. - Postal Savings Bank's subsidiary Zhongyou Wealth achieved total assets of RMB 13.59 billion and net assets of RMB 13.16 billion, with operating income of RMB 896 million, a year-on-year increase of 21.30%, and net profit of RMB 547 million, a year-on-year increase of 22.21%[169]. Market Position and Ratings - The bank has received ratings of A+ from Fitch, A1 from Moody's, and A from S&P Global, reflecting its strong market position and influence[13]. - In 2024, the bank ranked 12th in Tier 1 capital among the "Top 1000 World Banks" according to The Banker[13].

Investment Rating - The report assigns an "Accumulate" rating for Postal Savings Bank of China (1658) [2][4]. Core Views - The 2024 interim performance of Postal Savings Bank aligns with expectations, with revenue and net profit growth showing marginal decline. Loan and deposit growth outpaces peers, and asset quality remains stable, though future risk exposure should be monitored [4]. Summary by Sections Financial Performance - Revenue growth for Q2 2024 decreased by 3.1 percentage points compared to Q1, resulting in a year-on-year decline of 1.6%. Net interest income grew by 0.6%, but the growth rate declined by 2.6 percentage points from Q1 due to slower expansion and narrowing interest margins. Non-interest income also saw a decline of 8.1% year-on-year [4]. - The cost-to-income ratio increased by 2.6 percentage points year-on-year due to higher expenses from deposit acquisition through agency networks. Net profit growth for Q2 2024 fell by 0.6 percentage points to -1.7% compared to Q1, influenced by declining revenue growth and rising costs [4]. Loan and Deposit Growth - As of the end of Q2 2024, loans increased by 10.2% year-on-year, maintaining double-digit growth, which is faster than total asset growth. Corporate loans rose by 15%, while personal loans also showed steady growth. Deposits grew by 11.8% year-on-year, reflecting a solid increase [4]. Asset Quality - The non-performing loan (NPL) ratio stood at 0.84% as of June, unchanged from March, with a provision coverage ratio of 325.6%, slightly down by 1.3 percentage points. The core asset quality indicators remain superior to comparable peers [4].

Investment Rating - The investment rating for Postal Savings Bank is "Buy" [3] Core Views - The bank's performance in the first half of 2024 shows revenue pressure with a slight decline in both revenue and net profit, but net interest margin has stabilized. The bank's asset quality remains strong, with a continued improvement in non-performing loan generation [6][2]. Summary by Sections Performance Overview - Postal Savings Bank reported a revenue of 176.8 billion, a year-on-year decrease of 0.1%, and a net profit attributable to shareholders of 48.8 billion, down 1.5% year-on-year. The non-performing loan ratio stands at 0.84%, unchanged from the previous quarter [1]. - Net interest income increased by 1.8% year-on-year, with a net interest margin of 1.91%, showing a slight decrease of 1 basis point from the previous quarter. The decline in loan rates for both retail and corporate loans contributed to this trend [1][2]. Asset and Liability Management - Total assets reached 16.4 trillion, growing by 4% since the beginning of the year. Loans increased by 136.7 billion in the second quarter, with retail loans showing a significant increase of 464 billion [2]. - Deposits reached 14.9 trillion, a 7% increase since the beginning of the year, with time deposits growing significantly while demand deposits decreased [2]. Asset Quality - The non-performing loan ratio remains stable at 0.84%, with a slight increase in the attention ratio to 0.81%. The non-performing loan generation rate improved to 0.74%, indicating a positive trend in asset quality [2][6]. Financial Projections - The bank's financial projections indicate a slight decline in revenue growth for 2024, with expected revenue of 342.4 billion, reflecting a year-on-year decrease of 0.02%. The net profit is projected to be 86.85 billion, a modest increase of 0.67% [7][8].