Core Viewpoint - China Postal Savings Bank (Postal Bank) announced the absorption and merger of its wholly-owned subsidiary, Postal Huinong Bank, which will lead to the cancellation of the latter's independent legal status and the transfer of all its business, assets, and obligations to Postal Bank [2][8] Group 1: Merger Details - The merger will not affect the rights and obligations of Postal Huinong Bank's customers, and all existing contracts will remain valid [2][8] - Postal Huinong Bank's financial statements have been fully consolidated into Postal Bank's reports, indicating no substantial impact on Postal Bank's financial status or operational results [2][8][9] Group 2: Strategic Rationale - The merger aims to integrate Postal Huinong Bank's online operational experience into Postal Bank's broader development strategy, enhancing its online business capabilities [5][13] - The consolidation is expected to optimize resource allocation, inject new momentum into Postal Bank's development, and reduce management costs [13] Group 3: Industry Context - The merger reflects a broader trend in the banking industry towards digital transformation and the integration of direct banks into larger banking operations, as many banks have begun to merge or close their direct banking services [10][11] - The independent value of direct banks has diminished due to challenges such as product homogeneity and high customer acquisition costs, leading to a shift towards integrated banking services [11][12] Group 4: Performance Metrics - Since its establishment, Postal Huinong Bank has achieved significant growth, with total assets reaching 12 billion yuan and deposits growing at an annual rate of 120% [8]

Core Viewpoint - Postal Savings Bank of China (PSBC) announced the absorption and merger of its wholly-owned subsidiary, Postal Huinong Bank, to optimize management and business structure, resulting in the cancellation of the latter's independent legal status and the transfer of all its assets and liabilities to PSBC [1][4][5]. Group 1: Merger Details - The board of PSBC approved the merger proposal, which will be submitted to the shareholders' meeting and requires approval from the National Financial Regulatory Administration [5]. - The merger aims to enhance operational efficiency by integrating Postal Huinong Bank's online operational experience and resources into PSBC, thereby reducing management costs and improving overall operational efficiency [5][6]. Group 2: Postal Huinong Bank's Performance - Established in January 2022, Postal Huinong Bank had total assets of 12.005 billion yuan and over 20 million registered users by June 2023 [6]. - The bank reported a revenue of 150 million yuan in the first half of 2023, a year-on-year increase of 12.78%, while its net loss decreased by 38.74% compared to the previous year [6][7]. Group 3: Industry Context - Prior to the merger, there were only two independent legal direct banks in China, with the other being Citic Baixin Bank, which has a total asset of 119.516 billion yuan and a net profit of 472 million yuan as of June 2023 [8][9]. - The establishment of new independent direct banks has become increasingly challenging due to stricter regulatory policies and market saturation, leading to a trend of consolidation within the industry [9][10].

Core Viewpoint - Postal Savings Bank of China (PSBC) is merging its wholly-owned subsidiary, Postal Huinong Bank, to optimize management and business structure, reflecting a broader trend in the banking industry towards digital transformation and integration [1][2]. Group 1: Merger Announcement - PSBC announced the absorption and merger of Postal Huinong Bank, which will lead to the cancellation of the latter's independent legal status [1]. - The merger will not affect the rights and obligations of Postal Huinong Bank's customers, and existing contracts will remain valid [1]. Group 2: Cost Reduction and Efficiency Improvement - The merger aims to reduce operational costs and enhance efficiency by integrating Postal Huinong Bank's online operational experience into PSBC [2]. - It will optimize resource allocation, injecting new momentum into PSBC's development through the integration of Postal Huinong Bank's business resources and talent [2]. - Management costs are expected to decrease, allowing PSBC to focus resources on more complementary areas, thereby improving overall operational efficiency [2]. Group 3: Market Analysis and Trends - The establishment of Postal Huinong Bank was part of the banking sector's exploration of online and offline collaborative development, but its independent value has diminished due to increasing competition from mobile banking [3]. - Over 20 banks have closed or integrated their direct banks, indicating a shift towards integrated operations in the banking industry [3]. - The termination of Postal Huinong Bank is seen as beneficial for PSBC, as it can leverage the talent and experience accumulated by the subsidiary to enhance its online business [3]. Group 4: Business Performance and User Base - Postal Huinong Bank, established in January 2022 with a registered capital of 5 billion yuan, has accumulated over 20 million registered users by mid-2023 [4]. - As of June 2023, Postal Huinong Bank's total assets reached 12.005 billion yuan, with significant growth in its financial products and services [4]. - The bank's micro-loan balance accounted for 81.6% of its total loans, with a nearly fourfold increase in agricultural loans compared to 2023 [4]. Group 5: Financial Impact of the Merger - The merger will not adversely affect PSBC's financial status or operational results, as the financial statements of Postal Huinong Bank have already been fully consolidated into PSBC's reports [5]. - The impact on PSBC's future performance is expected to be minimal, as the scale of the loans and deposits being absorbed is relatively small [5].