EBSCN·2025-03-28 03:17Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of Postal Savings Bank, with current prices at 5.33 CNY and 5.09 HKD respectively [1]. Core Insights - The bank reported a revenue of 348.8 billion CNY for 2024, reflecting a year-on-year growth of 1.8%, while the net profit attributable to shareholders was 86.5 billion CNY, up 0.2% year-on-year [2][3]. - The bank's return on equity (ROE) was 9.84%, down 1.01 percentage points year-on-year [2]. Financial Performance - Revenue growth improved by 1.7 percentage points quarter-on-quarter, with net interest income increasing by 1.5% year-on-year and non-interest income rising by 3.2% [3]. - The bank's net interest margin (NIM) for 2024 was 1.87%, narrowing by 2 basis points from the previous quarter and 14 basis points year-on-year [6][7]. - Non-interest income accounted for 18% of total revenue, with a year-on-year growth of 3.2% [7]. Loan and Deposit Growth - By the end of 2024, interest-earning assets and loans grew by 7.9% and 9.4% year-on-year, respectively [4]. - The bank's total deposits increased by 9.5% year-on-year, with retail deposits making up 89.1% of total deposits [5]. Asset Quality - The non-performing loan (NPL) ratio was 0.9%, up 4 basis points from the previous quarter, but still below the industry average [8]. - The bank's provision coverage ratio was 286.2%, down 15.7 percentage points from the previous quarter [8]. Capital Adequacy - By the end of 2024, the bank's core tier 1 capital adequacy ratio was 9.56%, up 14 basis points from the previous quarter [9]. - The risk-weighted assets (RWA) grew by 5.3% year-on-year, indicating a stable capital position [9]. Cost Management - The bank plans to reduce its savings agency fees, which is expected to lower overall business and management expenses by 3.5 billion CNY [10][11]. Earnings Forecast - The report projects earnings per share (EPS) of 0.87 CNY for 2024, with a stable cash dividend payout ratio of 30% [12][33].