Guotou Securities·2025-05-05 05:01Investment Rating - The investment rating for Postal Savings Bank is "Buy-A" with a target price of 6.31 CNY over the next six months [5]. Core Views - The report highlights that the bank's revenue decreased by 0.07% year-on-year in Q1 2025, while pre-provision profit grew by 6.20%. However, net profit attributable to shareholders fell by 2.62% year-on-year [1]. - The growth in profit is primarily supported by the expansion of interest-earning assets and cost reduction, although narrowing net interest margins and increased provisioning have negatively impacted performance [1][11]. Summary by Sections Financial Performance - As of the end of Q1 2025, total assets of Postal Savings Bank increased by 8.31% year-on-year, with total loans growing by 9.78% and financial investments by 9.45% [1]. - The bank's net interest margin for Q1 2025 was measured at 1.71%, showing a decline of 21 basis points year-on-year [4][22]. - Non-interest income increased by 14.83% year-on-year, with net fees growing by 8.76% and other non-interest income rising by 21.70% [10]. Loan and Deposit Growth - Corporate loans saw a significant increase of 15.17% year-on-year, with a quarterly addition of 362 billion CNY [2]. - Retail loans grew by 4.27% year-on-year, with a quarterly increase of 678 billion CNY [2]. - Total deposits rose by 9.22% year-on-year, with corporate and retail deposits increasing by 20.46% and 7.94%, respectively [3]. Asset Quality and Provisions - The non-performing loan ratio stood at 0.91% at the end of Q1 2025, remaining stable [10]. - The bank increased its provisioning efforts, with a coverage ratio of 266.13% [10]. Future Outlook - The bank plans to enhance support for key sectors such as new productivity and inclusive small and micro enterprises, while also increasing consumer loan offerings [11]. - Revenue growth is projected at 1.43% for 2025, with net profit growth expected at 2.65% [11].