Hua Er Jie Jian Wen·2025-12-12 08:10Core Viewpoint - Postal Savings Bank is undergoing significant structural changes, focusing on enhancing its financial market operations and improving overall efficiency amid a challenging economic environment [1][16]. Group 1: Management Changes - The appointment of Yang Xilin as a member of the company's party committee and potential financial market business director indicates a shift towards prioritizing financial market operations [1]. - This change reflects the bank's intention to diversify its focus beyond retail banking [1]. Group 2: Branch Network Adjustments - In 2023, Postal Savings Bank closed 265 branches and opened 65 new ones, leading the six major banks in both closures and openings [2]. - This strategy signifies a rapid internal resource reallocation while addressing the need to convert its extensive network in lower-tier markets into profitability [2]. Group 3: Financial Performance - For the first three quarters, Postal Savings Bank reported revenues of 265.08 billion yuan and net profits of 76.562 billion yuan, with year-on-year growth rates of 1.82% and 0.98%, respectively, ranking fourth among the six major banks [3]. - The bank's revenue contributions are primarily from interest income (79.41%), followed by fee-based income (8.71%) and investment income (11.94%) [3]. Group 4: Key Operational Metrics - The bank maintains a high asset and liability growth rate of 8.9% and 8.64%, respectively, with a loan growth rate of 8.68%, the highest among the six major banks [4]. - It boasts a net interest margin of 1.68%, leading the sector, and an asset quality with a non-performing loan ratio of 0.94%, the best among its peers [4]. Group 5: Market Position and Challenges - Despite strong operational metrics, Postal Savings Bank's market valuation remains limited, with its A-share growth in single digits year-to-date, lagging behind peers like ICBC and CCB [6]. - The bank's primary challenge lies in operational efficiency rather than fundamental growth, as indicated by its negative return on equity of -27.18%, the lowest among the six major banks [7]. Group 6: Efficiency and Cost Management - The bank's revenue per employee and profit per employee rank fifth and sixth among the six major banks, respectively, indicating room for improvement in efficiency [8]. - The reliance on a high proportion of agency branches (80%) poses challenges in terms of operational efficiency and cost management, with significant expenses related to agency fees [9][10]. Group 7: Strategic Initiatives - Postal Savings Bank is implementing a two-pronged channel strategy, focusing on self-operated branches in high-capacity cities while extending its reach in lower-tier markets through agency branches [11][12]. - The bank is also enhancing its digital capabilities and adjusting agency fee structures to improve net interest margins and overall efficiency [13][14]. Group 8: Future Outlook - The bank aims to strengthen its financial market and asset management operations under the leadership of Yang Xilin, with a focus on improving asset utilization and overall efficiency [16]. - The success of these reforms in translating unique channel advantages into tangible profitability remains to be seen [16].