Hua Xia Shi Bao·2025-08-22 10:59Core Viewpoint - The recent performance of Agricultural Bank and Postal Savings Bank stands out in the banking sector, showing resilience and growth amidst a broader market pullback, driven by their strategic focus on county economies and rural areas [2][5][6]. Group 1: Market Performance - Industrial and Commercial Bank and China Merchants Bank have seen declines of nearly 10% and 11% respectively, while Agricultural Bank and Postal Savings Bank have experienced continuous growth [2]. - The current bull market was initially driven by commercial banks, but many have shown signs of fatigue, whereas Agricultural Bank and Postal Savings Bank continue to demonstrate strong momentum [2]. Group 2: Economic Context - Major cities are facing challenges due to a sluggish real estate market, which has led to a decrease in consumer confidence and a shift towards fixed-income investments, resulting in increased deposits and higher funding costs for banks [3][4]. - In contrast, county economies have lower real estate asset allocation, leading to more active consumption and investment behaviors among residents, which benefits banks operating in these areas [4]. Group 3: Financial Metrics - Agricultural Bank reported a net profit growth rate of 4.7%, the highest among the six major banks, attributed to its deep engagement in county economies [5]. - Postal Savings Bank leads with a net interest margin of 1.87%, benefiting from a high proportion of high-yield retail loans [6]. - Both banks maintain low non-performing loan ratios, with Postal Savings Bank at 0.9% and Agricultural Bank at 1.30%, showing strong risk management capabilities [6]. Group 4: Strategic Focus - Agricultural Bank's county deposits account for 35% and loans for 40%, focusing on "rural revitalization + pension finance" as dual engines for growth [6]. - Postal Savings Bank leverages its 40,000 outlets to promote "warm-hearted pension banking," targeting the significant future potential in pension services [6]. Group 5: Future Outlook - The economic focus is shifting towards county and rural areas, which are experiencing active development due to lower production costs and government support [7]. - However, there are concerns about the sustainability of this growth amid economic pressures, and both banks face challenges in technology investment and digital transformation [7].