Jing Ji Guan Cha Bao·2025-09-24 02:45Core Viewpoint - China Postal Savings Bank (Postal Bank) announced the absorption and merger of its wholly-owned subsidiary, Postal Huinong Bank, to optimize management and business structure, marking a significant shift in the independent direct bank landscape in China [1][8] Group 1: Company Overview - Postal Huinong Bank was established with a registered capital of 5 billion RMB, aiming to serve agriculture, small and micro enterprises, and the general public as a digital bank [2] - The bank faced continuous losses since its inception, with total losses amounting to 958 million RMB by 2025, raising concerns about its independent business model [7] Group 2: Financial Performance - By the end of 2022, Postal Huinong Bank had total assets of 7.022 billion RMB and a net asset of 4.838 billion RMB, indicating a loss of 162 million RMB in its first half-year of operation [3] - In 2023, total assets increased to 14.986 billion RMB, but net assets fell to 4.574 billion RMB, with a net loss of 263 million RMB, highlighting the bank's struggle to convert its user base into profitability [4] - By 2024, total assets decreased to 12.828 billion RMB, and net loss expanded to 415 million RMB, indicating severe operational challenges [5] - In the first half of 2025, total assets further declined to 12.005 billion RMB, with a net loss of 118 million RMB, although the loss was reported to have decreased by 38.74% year-on-year [6] Group 3: Industry Context - The merger reflects broader challenges faced by independent direct banks in China, with only one remaining operational, indicating a shift from initial optimism to a reality check [8] - The competitive landscape includes pressure from parent banks' mobile apps and established internet banks, which complicates the independent banks' market positioning [9] - The independent direct banks struggle with high initial costs and a lack of scale, leading to inevitable long-term losses, as evidenced by Postal Huinong Bank's financial trajectory [9] Group 4: Strategic Implications - The merger is seen as a rational adjustment based on financial returns and strategic effectiveness, emphasizing the need for banks to internalize digital capabilities rather than merely establishing new entities [11][12] - The focus for future banking competition will shift towards integrating digital technology into core business processes to enhance efficiency and customer experience [12]