Minsheng Securities·2024-02-01 16:00Investment Rating - The report maintains a "Recommended" rating for Postal Savings Bank of China (601658.SH) [2] Core Views - The retail capabilities of Postal Savings Bank are continuously being realized, with a retail customer base of 656 million and retail AUM of 14.5 trillion yuan as of the end of H1 2023 [1][2] - The bank's agricultural loans are a significant growth driver, contributing 37.6% to total loan growth in H1 2023, with personal small loans accounting for 71% of retail loan growth [1][2] - The bank's net interest margin is expected to remain advantageous due to a higher proportion of loans in interest-earning assets and a decrease in funding costs [1] - The asset quality is strong, with low non-performing loan ratios and credit costs, providing ample room for profit release and capital replenishment [1] Summary by Sections Retail Business - Postal Savings Bank has a solid retail foundation with a clear positioning, and its retail loan structure is more aligned with that of joint-stock banks compared to other state-owned banks [36] - The bank's wealth management transformation has a good foundation, but there is still room for structural optimization, particularly in the AUM composition [43][46] Agricultural Loans - The bank is well-positioned to support rural revitalization, with a significant portion of its branches located in rural areas, enhancing its service radius [65][67] - Agricultural loans have become a crucial growth area, with a 26.1% share of total loans as of H1 2023, and are expected to continue driving loan growth [70][72] Performance Analysis - The bank's revenue growth is relatively strong compared to peers, supported by a favorable tax burden and a high contribution from net interest income [78] - The bank's asset quality remains robust, with low impairment losses, which contributes to its overall financial health [78]