Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][8] Core Views - The company has shown positive growth in revenue and profit, with a revenue of 265.1 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 1.8% [1] - The net profit attributable to shareholders for the same period was 76.6 billion yuan, also reflecting a year-on-year growth of 1.0% [1] - The company's total assets increased by 11.1% year-on-year to 18.6 trillion yuan, with corporate loans growing significantly by 17.9% [1] - The net interest margin has decreased to 1.68%, down 21 basis points year-on-year, while non-interest income has seen a robust growth of 11.5% [2] - Asset quality pressures have increased, with a non-performing loan ratio of 0.94% at the end of the third quarter [2] Financial Performance Summary - For 2025, the company is projected to achieve a net profit of 86.6 billion yuan, with a slight growth rate of 0.2% [3][4] - The diluted EPS is expected to remain stable at 0.67 yuan for 2025, with a PE ratio of 8.9x [3][4] - The core Tier 1 capital adequacy ratio improved to 10.65%, up 1.09 percentage points from the beginning of the year [1] - The company’s total assets are forecasted to reach 18.79 trillion yuan by 2025, with a year-on-year growth of 10.0% [6]

Core Viewpoint - The six major state-owned banks in China reported positive year-on-year growth in both operating income and net profit for the first three quarters of 2025, despite a decline in net interest margins [3][4]. Financial Performance - The six major banks achieved approximately 2.73 trillion yuan in operating income, a year-on-year increase of 1.87%, and a net profit attributable to shareholders of about 1.72 trillion yuan, up 1.22% year-on-year [3][4]. - Among these banks, Bank of China and Industrial and Commercial Bank of China led in revenue growth rates at 2.69% and 2.17%, respectively, while Agricultural Bank of China had a net profit growth rate exceeding 3% at 3.03% [5][6]. - The absolute profit figures for the banks were as follows: Industrial and Commercial Bank earned approximately 269.9 billion yuan, Construction Bank 257.4 billion yuan, and Agricultural Bank 220.9 billion yuan [6]. Net Interest Margin and Income Structure - Net interest income continued to decline, with only the Transportation Bank showing a year-on-year increase of 1.46% in net interest income; the other five banks experienced varying degrees of decline, with Construction Bank and Bank of China seeing declines exceeding 3% [6][7]. - The net interest margin for the banks showed a downward trend, with the decline in margin narrowing significantly compared to the first half of the year [6][7]. Asset Quality and Growth - As of the end of the third quarter, total assets of the six banks approached 218 trillion yuan, reflecting a growth of approximately 1.85% since mid-year [3][8]. - The total loan amount exceeded 127 trillion yuan, with a growth of around 9 trillion yuan compared to the end of the previous year, and the fastest loan growth was seen in Bank of China, Postal Savings Bank, and Agricultural Bank, all exceeding 8% [8][9]. - Asset quality showed an overall improvement, with five banks reporting a decrease in non-performing loan ratios compared to the end of the previous year, while Postal Savings Bank saw a slight increase [9][10]. Market Capitalization - As of October 30, Agricultural Bank led in total market capitalization at 2.74 trillion yuan, followed by Industrial and Commercial Bank at 2.59 trillion yuan [10].

Core Viewpoint - Postal Savings Bank of China (PSBC) has reported a steady growth in revenue and net profit for the first three quarters of 2025, emphasizing its commitment to strategic upgrades, innovation, and risk management while aiming to become a leading large retail bank with a focus on inclusivity and stability [2][3]. Financial Performance - For the first three quarters of 2025, PSBC achieved operating income of CNY 265.08 billion, a year-on-year increase of 1.82% [3] - Net profit reached CNY 76.794 billion, reflecting a growth of 1.07% year-on-year [3] - The net interest margin stood at 1.68%, maintaining an excellent industry level, with net interest income showing quarterly improvement [3] - Non-interest income grew by 11.48%, with other non-interest income increasing by 27.52% [3] Risk Management - As of September 2025, the non-performing loan (NPL) ratio was 0.94%, continuing a long-standing low trend [4] - The core Tier 1 capital adequacy ratio improved to 10.65%, up by 1.09 percentage points from the previous year [4][5] Asset and Liability Management - PSBC's loans increased by CNY 742.689 billion, with corporate loans rising by 17.91% [6] - Deposits grew by CNY 928.903 billion, a 6.08% increase, with corporate deposits up by 12.19% [6] - The average interest rate on interest-bearing liabilities decreased to 1.22%, down by 25 basis points from the previous year [6] Strategic Initiatives - PSBC is enhancing its service model to support rural finance, small and micro enterprises, and green finance, with significant loan balances in these areas [7][8] - The bank has established technology finance departments in six major cities to support innovation in the tech sector, with technology loans exceeding CNY 940 billion [8] - PSBC is actively promoting consumption through targeted loan policies, resulting in a significant increase in non-housing consumer loans [10] Organizational Development - The bank is implementing "Five Major Actions" and "Seven Major Reforms" to optimize its operational structure and enhance competitiveness [11][13] - Focus areas include improving service efficiency in urban and rural areas, enhancing digital banking capabilities, and fostering a collaborative environment for corporate clients [12][13] Future Outlook - PSBC aims to align its strategies with national economic goals and enhance its role in supporting the real economy while contributing to financial stability [13]

Core Insights - The six major state-owned banks in China reported a year-on-year increase in both operating income and net profit for the first three quarters of 2025, with operating income reaching approximately 2.73 trillion yuan and net profit around 1.72 trillion yuan, reflecting growth rates of 1.87% and 1.22% respectively [1][2] Financial Performance - All six banks achieved positive year-on-year growth in revenue and net profit, with Bank of China and Industrial and Commercial Bank of China leading in revenue growth rates of 2.69% and 2.17% respectively [2] - Agricultural Bank of China reported a net profit growth rate exceeding 3%, specifically at 3.03%, while other banks like Bank of Communications and Bank of China also showed net profit growth above 1% [2] - The absolute profit figures for the banks were significant, with Industrial and Commercial Bank of China earning approximately 269.9 billion yuan, followed by China Construction Bank at 257.4 billion yuan and Agricultural Bank of China at 220.9 billion yuan [2] Net Interest Margin - The net interest margin (NIM) for most banks continued to decline, with only Bank of Communications showing a year-on-year increase in net interest income of 1.46% [3] - The decline in NIM was less severe compared to the first half of the year, with quarterly declines ranging from 0.01 to 0.04 percentage points [3] Asset Quality and Growth - By the end of the third quarter, total assets of the six banks approached 218 trillion yuan, marking a growth of approximately 1.85% since mid-year [1][4] - The total loan amount exceeded 127 trillion yuan, with a growth of around 9 trillion yuan compared to the end of the previous year, particularly driven by Bank of China, Postal Savings Bank, and Agricultural Bank of China, all showing growth rates above 8% [4] Provision Coverage - The overall asset quality showed improvement, with five banks reporting a decrease in non-performing loan ratios compared to the end of the previous year, while Postal Savings Bank experienced a slight increase [4] - The provision coverage ratio for Agricultural Bank of China remained the highest among the banks, although it decreased from approximately 299.61% to 295.08% [5] Market Capitalization - As of October 30, Agricultural Bank of China led in market capitalization at approximately 2.74 trillion yuan, followed by Industrial and Commercial Bank of China at about 2.59 trillion yuan [5] - Agricultural Bank of China was noted as the only major state-owned bank with a price-to-book (PB) ratio recovering to above 1 [5]

Core Insights - Postal Savings Bank of China reported a revenue of 265.08 billion yuan for Q3 2025, a year-on-year increase of 1.82% [1] - The net profit reached 76.794 billion yuan, reflecting a growth of 1.07% compared to the previous year [1] - The bank's non-performing loan ratio remained low at 0.94%, indicating stable asset quality [1] - The core Tier 1 capital adequacy ratio improved to 10.65%, up 1.09 percentage points from the end of the previous year, supporting robust operations [1] Financial Performance - Operating income for Q3 2025 was 2650.80 billion yuan, with a net interest margin of 1.68% [1] - The bank's net profit was 767.94 billion yuan, showing a modest increase of 1.07% year-on-year [1] - The bank's non-performing loan ratio stood at 0.94%, maintaining a low level [1] - The core Tier 1 capital adequacy ratio was reported at 10.65%, an increase of 1.09 percentage points from the previous year [1] Business Development - The bank is accelerating the innovation of inclusive financial services, focusing on key areas such as food security and rural development [2] - It has reached nearly 1.7 million small and micro enterprises, with total credit exceeding 1 trillion yuan [2] - Agricultural loan balance reached 2.47 trillion yuan, while inclusive small and micro enterprise loans amounted to 1.75 trillion yuan [2] Technological Advancements - The bank is enhancing its technology finance service system, establishing specialized departments in six major cities [2] - The balance of technology loans surpassed 940 billion yuan by the end of September [2] - The bank launched a series of services under "Postal Savings + Financial Management," catering to the entire lifecycle of enterprises [2] Green Finance Initiatives - The bank is actively promoting green finance, with a green loan balance of 999.28 billion yuan, a year-on-year increase of 16.32% [3] - It invested 500 million yuan in green bond funds during the third quarter [3] Pension Financial Services - The bank is developing a comprehensive pension service model, serving over 300 million clients aged 55 and above [3] - It has issued over 130 million financial social security cards, with a stable growth in personal pension contributions [3] Digital Financial Services - The bank has launched its third-generation core fund business system, reducing transaction approval time by 97% [3] - A new generation of fund clearing systems has been implemented, improving efficiency by nearly 50 times [3]

Group 1 - The six major state-owned banks in China reported revenue and net profit growth for the first three quarters of the year, with a total profit of 1.07 trillion yuan [1] - Revenue figures for the six banks are as follows: ICBC 640.03 billion yuan, ABC 550.88 billion yuan, CCB 573.70 billion yuan, BOC 491.20 billion yuan, PSBC 265.08 billion yuan, and CMB 199.65 billion yuan, with year-on-year growth rates of 2.17%, 1.97%, 0.82%, 2.69%, 1.82%, and 1.80% respectively [1] - Net profit figures are: ICBC 269.91 billion yuan, ABC 220.86 billion yuan, CCB 257.36 billion yuan, BOC 177.66 billion yuan, PSBC 76.56 billion yuan, and CMB 69.99 billion yuan, with year-on-year growth rates of 0.33%, 3.03%, 0.62%, 1.08%, 0.98%, and 1.90% respectively [1] Group 2 - The net interest margin, a key indicator of bank profitability, has been narrowing for the six major banks, with margins reported as follows: ICBC 1.28%, ABC 1.30%, CCB 1.36%, BOC 1.26%, PSBC 1.68%, and CMB 1.20%, all showing a year-on-year decline [1] - As of the end of September, the non-performing loan ratios for the banks were: ICBC 1.33%, ABC 1.27%, CCB 1.32%, BOC 1.24%, PSBC 0.94%, and CMB 1.26%, all showing improvement compared to the end of the previous year [2] - The total dividend payout proposed by the banks amounts to 204.66 billion yuan, with individual payouts per 10 shares as follows: ICBC 1.414 yuan, ABC 1.195 yuan, CCB 1.858 yuan, BOC 1.094 yuan, PSBC 1.230 yuan, and CMB 1.563 yuan [2]

Investment Rating - The investment rating for Postal Savings Bank (601658.SH) is "Outperform the Market" [5][3]. Core Views - The bank's revenue and profit continue to show positive growth, with operating income reaching 265.1 billion yuan in the first three quarters of 2025, a year-on-year increase of 1.8%. The net profit attributable to shareholders was 76.6 billion yuan, up 1.0% year-on-year [1]. - The bank's total assets grew by 11.1% year-on-year to 18.6 trillion yuan, with corporate loans increasing by 17.9% due to enhanced credit allocation in advanced manufacturing, green finance, technology finance, and inclusive finance [1]. - The net interest margin decreased to 1.68%, down 21 basis points year-on-year, while non-interest income grew significantly, with net fee income increasing by 11.5% to 23.1 billion yuan [2]. - Asset quality pressures are evident, with a non-performing loan ratio of 0.94%, up 0.04 percentage points from the beginning of the year [2]. Financial Forecasts - The forecast for net profit attributable to shareholders for 2025-2027 is 86.6 billion, 87.2 billion, and 88.3 billion yuan, with year-on-year growth rates of 0.2%, 0.7%, and 1.2% respectively [3][4]. - The diluted EPS is projected to be 0.67 yuan for 2025, with a corresponding PE ratio of 8.9x [3][4]. - The bank's core Tier 1 capital adequacy ratio is expected to be 10.65% by the end of Q3 2025, an increase of 1.09 percentage points from the beginning of the year [1].

Core Insights - The People's Bank of China announced the winners of the 2024 Financial Technology Development Award, highlighting significant achievements in the financial technology sector [1][3] - A total of 290 projects were awarded, including 1 special award, 18 first prizes, 103 second prizes, 148 third prizes, and 20 special "Micro-Innovation Awards" [1][3] - State-owned banks dominated the awards, with Industrial and Commercial Bank of China (ICBC) being the only institution to win two first prizes [1][8] Award Distribution - The total number of awards increased by 33 compared to 2023, with state-owned banks collectively winning 33 awards [1][4] - ICBC won 6 awards, including 2 first prizes, focusing on intelligent risk control and securities infrastructure [4][8] - China Bank received 7 awards, with 1 first prize and 5 third prizes, marking an increase of 2 awards from 2023 [4][10] - Agricultural Bank won 5 awards, including 1 first prize, while Construction Bank secured 6 awards, including 1 first prize [4][11] - Postal Savings Bank received 4 awards, maintaining its performance from 2023 [5][12] Technological Focus - The awarded projects emphasized core system construction, AI application, and risk management [6][8] - ICBC's first prize projects included a comprehensive AI risk detection platform and a securities database project, showcasing advancements in financial data integration [8][9] - Agricultural Bank's first prize project focused on enterprise-level business architecture, while China Bank's first prize was for a comprehensive IT architecture transformation project [9][10] - Construction Bank's first prize project involved a core banking system migration, highlighting its commitment to distributed systems and AI applications [11][12] - The awards also recognized innovative projects from smaller banks, indicating a broader trend towards technology adoption across the banking sector [13][15]

Core Viewpoint - Postal Savings Bank of China reported a steady increase in revenue and net profit for the first three quarters of 2025, indicating enhanced operational resilience despite a slight decline in return on equity [1][2]. Financial Performance - For the first three quarters of 2025, the bank achieved operating income of 265.1 billion, a year-on-year increase of 1.8%, and a net profit attributable to shareholders of 76.6 billion, also up 1% year-on-year [1]. - The weighted average return on equity was 10.67%, down 1.12 percentage points year-on-year [1]. Revenue Composition - Net interest income decreased by 2.1% year-on-year, but the decline was less severe than in the first half of 2025, indicating a gradual improvement in interest income growth since Q2 [2]. - Non-interest income saw a significant increase of 20.2% year-on-year, with net other non-interest income growing by 27.5% [5]. Asset and Loan Growth - The bank's interest-earning assets and loans grew by 11.3% and 10% year-on-year, respectively, with a notable increase in loans driven primarily by corporate lending [3]. - As of Q3 2025, corporate loans accounted for nearly 94% of the loan growth, reflecting a strategic focus on key sectors amid weaker retail loan demand [3]. Deposit Stability - The growth rate of deposits remained stable, with total deposits increasing by 8.1% year-on-year, primarily driven by retail contributions [3]. - Retail deposits increased by 138.7 billion, while corporate deposits decreased by 27.8 billion [3]. Interest Margin and Cost Management - The net interest margin for the first three quarters was 1.68%, a slight decrease of 2 basis points from the first half of 2025 [4]. - The bank's asset yield and cost of interest-bearing liabilities were 2.88% and 1.21%, respectively, reflecting ongoing pressure on asset yields [4]. Asset Quality - The non-performing loan ratio was 0.94%, slightly up by 2 basis points from Q2, but still considered low within the industry [6]. - The annualized non-performing loan generation rate was stable at 0.93%, with credit impairment losses increasing by 22.9% year-on-year [6][7]. Capital Adequacy - The bank's capital adequacy ratios improved, with the core tier 1 capital ratio at 10.65%, up by 12 basis points from the previous quarter [7]. - The bank is advancing its capital management strategies, potentially transitioning to advanced internal rating-based approaches to further enhance capital adequacy [7]. Future Outlook - The bank's strong asset quality, stable deposit base, and optimization potential in asset management position it well for future growth [8]. - The establishment of the China Postal Financial Asset Investment Company is expected to enhance the bank's comprehensive operational capabilities [8].

Core Viewpoint - The report highlights the financial performance and strategic initiatives of China Postal Savings Bank for the third quarter of 2025, emphasizing its commitment to high-quality development and risk management while achieving growth in both revenue and net profit [16][25]. Financial Performance - For the first nine months of 2025, the bank achieved operating income of RMB 265.08 billion, an increase of 1.82% year-on-year, and net profit of RMB 76.79 billion, up 1.07% year-on-year [25]. - The annualized return on total assets was 0.58%, and the annualized weighted average return on equity was 10.67% [25]. - Interest income for the same period was RMB 210.51 billion, a decrease of 2.07% year-on-year, while net interest margin remained at 1.68% [26]. - Non-interest income, including fees and commissions, increased by 11.48% to RMB 23.09 billion, and other non-interest income rose by 27.52% to RMB 31.48 billion [27][28]. - Operating expenses decreased by 2.66% to RMB 152.17 billion, reflecting effective cost management [29]. Asset Quality and Capital Adequacy - As of the end of September 2025, the bank's total assets reached RMB 18.61 trillion, a year-on-year increase of 8.90% [31]. - The total customer loans amounted to RMB 9.66 trillion, with a year-on-year growth of 8.33% [31]. - The non-performing loan ratio stood at 0.94%, with a slight increase of 0.04 percentage points from the previous year [34]. - The core tier one capital adequacy ratio was 10.65%, up 1.09 percentage points from the previous year, indicating a solid capital position [34]. Strategic Initiatives - The bank is focused on enhancing its asset-liability management and has seen a 17.91% increase in corporate loans, reflecting its commitment to supporting the real economy [17]. - The bank is actively pursuing a transformation towards a more diversified and sustainable growth model, with a focus on non-interest income and risk management [18][19]. - The bank has implemented various initiatives to optimize financial supply and ensure that policy benefits reach market entities effectively [20]. - The bank's retail assets under management (AUM) reached RMB 17.89 trillion, growing over 7% year-on-year, indicating strong customer engagement [20]. Shareholder Information - As of the report date, the total number of ordinary shareholders was 142,576, with significant holdings by the controlling shareholder, China Postal Group [12]. - The bank plans to distribute a mid-term cash dividend of RMB 1.230 per share, totaling approximately RMB 14.77 billion [38].