Postal Savings Bank of China (1658) investor relations material

Executive summary

• Operating income for H1 2026 was RMB192.53 billion, up 7.24% year-over-year; net profit reached RMB51.67 billion, up 4.57% year-over-year.

• Total assets grew 6.07% from prior year-end to RMB19.82 trillion; customer deposits rose 5.42% to RMB17.44 trillion; total loans to customers increased 6.41% to RMB10.27 trillion.

• The bank maintained strong asset quality with a non-performing loan (NPL) ratio of 1.00% and allowance to NPLs ratio of 214.93%.

• Continued to optimize asset and liability structure, expand non-interest income, and enhance risk management and digital transformation.

• Over 98 million monthly active mobile banking users and more than 370 LLM application scenarios deployed.

Financial highlights

• Net interest income increased 5.82% year-over-year to RMB147.15 billion; net fee and commission income rose 12.20% to RMB18.98 billion.

• Net interest margin was 1.63%, and cost-to-income ratio improved to 50.63%.

• Liquidity ratio stood at 116.05%, liquidity coverage ratio at 207.66%, and net stable funding ratio at 170.55%.

• CET1, Tier 1, and total capital adequacy ratios were 10.04%, 11.49%, and 14.19%, respectively.

• Basic and diluted EPS for H1 2026 was RMB0.40.

Outlook and guidance

• The bank expects continued macroeconomic volatility globally but sees resilience in China's economy and banking sector.

• Strategic focus remains on serving national priorities, optimizing business structure, expanding non-interest income, and strengthening risk controls.

• Plans to distribute an interim cash dividend of RMB1.33 per ten shares (before tax), totaling RMB15.97 billion, subject to shareholder approval.