Investment Rating - The report maintains a "Buy" rating for Postal Savings Bank of China (601658) with a target price yet to be specified [9] Core Views - The bank's revenue shows signs of improvement, with a year-on-year increase of 1.50% in H1 2025, and a sequential growth acceleration of 1.57 percentage points from Q1 2025 [2][14] - Net interest margin is expected to stabilize, recorded at 1.7% in H1 2025, slightly down from Q1 2025 [2][16] - The bank's non-interest income has significantly increased, with net fee and commission income rising by 11.59% year-on-year [3][24] Financial Performance Summary - Revenue for H1 2025 reached approximately 1794.46 billion yuan, with net interest income at 1390.58 billion yuan, accounting for 77.49% of total revenue [2][14] - Non-interest income for H1 2025 was 403.88 billion yuan, showing a year-on-year growth of 19.09% [3][24] - The bank's total interest-earning assets amounted to 17.95 trillion yuan, a year-on-year increase of 10.83% [4][24] - The non-performing loan (NPL) ratio stood at 0.92%, with a provision coverage ratio of 260% [5][29] Asset and Liability Analysis - As of H1 2025, the bank's interest-bearing liabilities totaled 16.92 trillion yuan, reflecting a year-on-year growth of 10.59% [4][28] - The structure of liabilities shows that deposits accounted for 95.21% of total interest-bearing liabilities, with a year-on-year increase of 8.35% [4][28] - The bank's loan portfolio has seen significant growth, particularly in corporate loans, which increased by 18.62% year-on-year [24][25] Provisioning and Asset Quality - The bank maintains a high level of provisioning, with a loan provision rate of 2.39% and a coverage ratio of 260.4% [5][29] - The overall NPL rate for corporate loans improved to 0.49%, while retail loans saw a slight increase to 1.53% [30][31]

Investment Rating - The investment rating for the company is "Buy" (maintained) [8] Core Views - The company's revenue showed steady improvement, with a 3.76% year-on-year increase in revenue for the first half of 2025, reaching approximately 329 billion CNY [2][13] - The net interest income decreased by 5.27% year-on-year, while non-interest income increased by 26.43%, indicating a shift in revenue structure [2][3] - The company is expected to see a gradual increase in net profit attributable to shareholders, with projected growth rates of 0.61%, 3.26%, and 3.81% for 2025-2027 [5] Financial Performance - For the first half of 2025, the company reported a net interest margin of 1.26%, down 3 basis points from the first quarter of 2025 [2][15] - The total interest-earning assets amounted to 35.69 trillion CNY, reflecting a year-on-year growth of 8.84% [4][22] - The non-performing loan ratio stood at 1.24%, with a provision coverage ratio of 197.4% [4][27] Revenue Structure - The revenue structure for the first half of 2025 consisted of net interest income at 214.82 billion CNY (65.29% of total revenue) and non-interest income at 114.19 billion CNY [2][3] - The company’s fee and commission income increased by 9.17% year-on-year, while investment income decreased by 14.72% [3][21] Asset and Liability Management - The company’s interest-bearing liabilities reached 31.24 trillion CNY, a year-on-year increase of 5.10% [4][26] - The average cost of deposits decreased to 1.74%, down 25 basis points from the end of 2024 [3][20] - The proportion of demand deposits increased to 42.73%, reflecting a growth of 11.63% year-on-year [25][26] Asset Quality - The overall non-performing loan ratio for corporate loans was recorded at 1.19%, showing improvement compared to the end of 2024 [27][29] - Retail loan non-performing rates increased slightly to 1.15% [28][30]