Postal Savings Bank of China (1658) investor relations material

Executive summary

• Achieved RMB25,846 million in net profit for Q1 2026, up 1.91% year-over-year, and RMB96,176 million in operating income, up 7.57% year-over-year.

• Net interest income rose 7.32% year-over-year, with net interest margin at 1.65%, maintaining a leading industry position.

• Non-interest income share increased, with net fee and commission income up 16.83% year-over-year.

• Total assets reached RMB19.51 trillion, customer deposits RMB17.29 trillion, and loans to customers RMB10.13 trillion, all hitting new highs.

• Maintained prudent risk management, with NPL ratio at 0.99% and allowance to NPLs ratio at 216.65%.

Financial highlights

• Operating income: RMB96,176 million (+7.57% YoY); Net profit: RMB25,846 million (+1.91% YoY).

• Net interest income: RMB73,897 million (+7.32% YoY); Net fee and commission income: RMB12,040 million (+16.83% YoY).

• Operating expenses: RMB50,828 million (-1.18% YoY); Cost-to-income ratio: 52.04% (-4.73 ppt YoY).

• Credit impairment losses: RMB17,707 million (+65.22% YoY), mainly due to loan growth and prudent provisioning.

• Net cash flows from operating activities: RMB307,846 million (+306.69% YoY), driven by increased deposits.

Outlook and guidance

• Focus on high-quality, sustainable growth, leveraging digital transformation and risk management.

• Continued expansion in technology, green, inclusive, and pension finance, with digital and AI-driven initiatives.

• Strategic emphasis on dual-track income growth (interest and non-interest), cost control, and customer base expansion.