Core Viewpoint - Postal Savings Bank of China (PSBC) reported a slight increase in revenue and net profit for 2024, with a focus on maintaining a stable dividend payout and adjusting agency fee rates to alleviate profit pressure [4]. Financial Performance - For 2024, PSBC's total revenue increased by 1.8% year-on-year, while net profit attributable to shareholders rose by 0.2%. The net interest income grew by 1.5%, and non-interest income saw a significant recovery with a 3.2% increase [1]. - The year-end non-performing loan (NPL) ratio rose by 4 basis points (bps) to 0.90%, with a year-to-date increase of 7 bps. The provision coverage ratio decreased by 16 percentage points to 286% [1]. Loan and Deposit Growth - Retail loans showed strong growth despite weak demand, with total loans increasing by 9.4% year-on-year and a quarterly growth of 1.5%. Corporate, bill, and retail loans grew by 13.5%, 6.1%, and 6.7% respectively [2]. - Total deposits increased by 9.5%, making PSBC the only major state-owned bank to achieve a year-on-year increase. The proportion of demand deposits rose slightly to 27.1% [2]. Interest Margin and Cost Management - The net interest margin for the year was 1.87%, down 14 bps year-on-year, with a decline of 2 bps from the previous quarter. The loan yield decreased by 11 bps, primarily due to a drop in personal loan rates [2][3]. - The deposit cost rate decreased to 1.44%, down 4 bps from the previous half-year and 9 bps year-on-year, with personal time deposit costs dropping by 17 bps [2]. Asset Quality and Risk Management - The year-end NPL ratio increased slightly, reflecting retail risk pressures, with a new NPL generation rate of 0.84% for the year. The new NPL generation rate for personal loans rose to 1.36% [3]. - The quality of corporate loans remained strong, with the NPL ratio for real estate corporate loans at 1.94%, down 31 bps from the previous half-year [3]. Agency Fee Rate Adjustment - PSBC has proactively adjusted its agency fee rates, which is expected to enhance profitability. The comprehensive agency fee rate is projected to decrease from 1.15% to 1.04%, resulting in a reduction of agency fee expenses by CNY 11.5 billion for 2024 [3]. Investment Outlook - The bank maintains a stable dividend payout ratio of 30% based on net profit, with attractive valuations and high dividend yields expected for 2025 [4].