Postal Savings Bank of China (1658) Q1 2025 earnings summary

Executive summary

• Operating income for Q1 2025 was RMB89,406 million, down 0.10% year-over-year; net profit attributable to shareholders was RMB25,246 million, down 2.62% year-over-year.

• Non-interest income grew, with net fee and commission income up 8.76% and net other non-interest income up 21.29% year-over-year.

• Asset quality remained strong with an NPL ratio of 0.91% and allowance to NPLs ratio at 266.13%.

• Total assets increased 3.54% from the prior year-end to RMB17,689,399 million; customer deposits rose 4.51% to RMB15,976,534 million.

Financial highlights

• Net interest income was RMB68,857 million, down 3.79% year-over-year; net interest margin was 1.71%.

• Operating expenses decreased 4.29% year-over-year to RMB51,436 million.

• Credit impairment losses rose 53.45% year-over-year to RMB10,717 million.

• Net cash flows from operating activities dropped 66.38% year-over-year, mainly due to higher cash paid for loans and reserves.

Outlook and guidance

• Focus on balanced, resilient growth and innovation, with continued support for rural revitalization, technology, green, and inclusive finance.

• Plans to accelerate digital transformation, expand capital base, and enhance risk management.