Changjiang Securities·2025-09-07 13:46Investment Rating - The investment rating for Postal Savings Bank is "Buy" and is maintained [9]. Core Views - The bank's revenue growth turned positive at +1.5% in the first half of the year, with a net profit growth of +0.8%. The second quarter saw a significant increase in net profit growth at +4.8%, leading among state-owned banks [2][6]. - The net interest income decreased by 2.7%, primarily due to a decline in net interest margin, which dropped by 17 basis points year-on-year. The bank's net interest margin was 1.70% at the end of the first half [2][12]. - The non-performing loan ratio was 0.92%, with a slight increase of 1 basis point from the previous quarter and 2 basis points from the beginning of the year. The provision coverage ratio stood at 260%, down 6 percentage points from the previous quarter [2][6]. Summary by Sections Performance - Revenue growth turned positive at +1.5% in the first half, with Q2 showing a growth of +3.1%. Net profit growth was +0.8%, with Q2 at +4.8% [2][6]. - Net interest income decreased by 2.7%, with a decline in net interest margin impacting overall performance [12]. - Non-interest income grew by +19.1%, driven by investment banking and wealth management services [12]. Scale - Total assets and loans grew by 6.5% and 7.0% respectively compared to the beginning of the year. Retail loans increased by 1.9%, while corporate loans surged by 14.8% [12][24]. Interest Margin - The net interest margin decreased by 1 basis point to 1.70%, with a year-on-year decline of 17 basis points, the largest among state-owned banks [12][24]. Asset Quality - The non-performing loan ratio increased to 0.92%, with a new generation rate of 0.93%. Retail loans showed a higher risk, with the new generation rate rising to 1.53% [12][24]. Investment Recommendations - The bank's performance growth is leading among peers, with a current A-share/PB valuation of 0.74x and an expected dividend yield of 3.5% [12][24]. If macroeconomic conditions improve, asset quality may enhance, leading to valuation recovery, thus maintaining a "Buy" rating [12][24].