Investment Rating - The investment rating for Postal Savings Bank is "Buy" [6] Core Views - The bank reported a revenue of 348.8 billion yuan for 2024, representing a year-on-year growth of 1.83%. The pre-provision profit reached 123 billion yuan, up 5% year-on-year, while the net profit attributable to shareholders was 86.5 billion yuan, a slight increase of 0.24% [1][14] - The bank has proactively adjusted its savings agency fee rates for the first time since its listing, aiming to optimize its liability structure and reduce interest costs. The comprehensive agency fee rate for 2024 decreased from 1.08% to 1.04%, resulting in a reduction of agency fees by 3.5 billion yuan [2][3] - Non-interest income has supported revenue growth, with net interest income increasing by 1.53% year-on-year. The net interest margin for 2024 was 1.87%, down 14 basis points from the previous year. Other non-interest income grew by 15.15%, driven by a 30.89% increase in investment income [3][4] Summary by Sections Financial Performance - For 2024, the bank's operating income and net profit attributable to shareholders grew by 1.83% and 0.24%, respectively. The growth in revenue was primarily supported by an increase in non-interest income [3][14] - The bank's net interest income rose by 1.53%, while the net interest margin decreased to 1.87%, reflecting a decline in both asset yields and funding costs [3][4] - The bank's total assets and loan amounts reached 17.1 trillion yuan and 8.9 trillion yuan, respectively, with year-on-year growth of 8.64% and 9.38% [13] Asset Quality - The non-performing loan (NPL) ratio stood at 0.90% at the end of Q4 2024, with a provision coverage ratio of 286.15%. The NPL ratio for personal loans was 1.28%, showing a slight increase [11][12] - The bank's credit cost for 2024 was 0.34%, a decrease of 1 basis point year-on-year. The NPL generation rate was 0.84%, down 1 basis point from the previous year [12] Dividend Policy - The bank declared a cash dividend of 2.616 yuan per 10 shares for 2024, resulting in a dividend payout ratio of 30% [1]

Investment Rating - The report maintains an "Accumulate" rating for Postal Savings Bank [3] Core Views - The bank's revenue growth accelerated to +1.8% year-on-year in 2024, driven primarily by non-interest income, while net profit increased by +0.2% [5][10] - The bank's net interest income showed a year-on-year growth of +1.5%, with a slight narrowing of interest margins [5][10] - The bank's asset quality remains stable, with a non-performing loan ratio of 0.90% [22][23] Summary by Sections Financial Performance - Revenue for 2024 is projected at 348,695 million, with a growth rate of 1.8% year-on-year [3] - Net profit for 2024 is estimated at 86,479 million, reflecting a growth rate of 0.2% [3] - Earnings per share (EPS) is expected to be 0.87 for 2024 [3] Non-Interest Income - Non-interest income increased by +3.3% year-on-year, with other non-interest income growing by +15.3% [5][19] - Fee income decreased by -10.5% year-on-year, but the decline is showing signs of slowing down [5][19] Asset and Liability Management - Credit growth has shown signs of recovery, with new loans in Q4 2024 amounting to 133.8 billion, a year-on-year increase of 5.4 billion [15][16] - The proportion of demand deposits has increased, contributing to a decrease in funding costs [15][16] Asset Quality - The overall asset quality remains robust, with a non-performing loan generation rate of 0.84% for the year [22][23] - The bank's provision coverage ratio stands at 286.15%, indicating a strong buffer against potential losses [22][23] Investment Recommendations - The bank is expected to maintain a price-to-book (P/B) ratio of 0.60X in 2025, indicating a favorable valuation [28] - The bank's extensive network and retail focus provide a competitive advantage, making it a noteworthy investment opportunity [28]