PSBC(SH:601658) Guotou Securities·2025-03-31 04:34Investment Rating - The investment rating for Postal Savings Bank is maintained at Buy-A [7] Core Views - The report highlights that the performance of Postal Savings Bank has shown further recovery, with a revenue growth rate of 1.83% for 2024 and a net profit growth rate of 0.24% [2][12] - The bank's cost reduction efforts have significantly contributed to performance growth, accounting for a positive contribution of 44.54 percentage points to the net profit growth in Q4 2024 [2][12] - The report anticipates that the bank will continue to support key sectors such as new productivity and inclusive finance, while also increasing consumer loan issuance in response to national consumption promotion policies [13][12] Summary by Sections Financial Performance - For 2024, Postal Savings Bank's total assets grew by 8.64% year-on-year, with a notable increase in loans, particularly corporate loans which rose by 13.52% [3][4] - The bank's net interest margin for Q4 2024 was estimated at 1.81%, with a slight decline in the yield on interest-earning assets [11][12] - Non-interest income saw a significant increase of 38.79% year-on-year in Q4 2024, primarily driven by investment income [12] Asset and Liability Management - The total deposits of Postal Savings Bank increased by 9.54% year-on-year, with corporate deposits growing by 13.56% and retail deposits by 9.07% [4][17] - The bank's financial assets accounted for 35.69% of interest-earning assets by the end of 2024, reflecting a strategic shift towards securities and investment funds [2][3] Future Outlook - The report projects a revenue growth rate of 1.43% and a net profit growth rate of 2.65% for 2025, supported by the adjustments in agency fee rates which are expected to enhance profitability [12][13] - The bank's cost-to-income ratio improved significantly to 76.56% in Q4 2024, down by 5.98 percentage points year-on-year, indicating better operational efficiency [12][20]