Postal Savings Bank of China (1658) Q2 2024 earnings summary

Executive summary

• Operating income for H1 2024 was RMB176.92 billion, down 0.13% year-over-year, with net profit at RMB48.89 billion, a decrease of 1.52% year-over-year.

• Total assets reached RMB16.41 trillion, up 4.37% from the prior year-end; customer deposits rose 6.51% to RMB14.87 trillion.

• Maintained a stable non-performing loan (NPL) ratio at 0.84% and a capital adequacy ratio of 14.15%.

• Focused on five strategic priorities: technology finance, green finance, inclusive finance, pension finance, and digital finance.

• Maintained top international credit ratings and ranked 12th globally by tier 1 capital.

Financial highlights

• Net interest income increased 1.83% year-over-year to RMB142.88 billion; net interest margin was 1.91%.

• Net fee and commission income declined 16.71% year-over-year, mainly due to policy changes affecting bancassurance.

• Total loans to customers increased 6.26% to RMB8.66 trillion; personal loans grew 4.86%, corporate loans 9.90%.

• Operating expenses rose 4.13% year-over-year, mainly due to higher deposit agency fees.

• Net cash inflow from operating activities was RMB130.93 billion, up RMB47.44 billion year-over-year.

Outlook and guidance

• Will continue to prioritize high-quality development, digital transformation, and risk management.

• Focus on expanding inclusive finance, supporting rural revitalization, and enhancing technology-driven services.

• Interim dividend for 2024 will not exceed 30% of net profit attributable to equity holders.