Postal Savings Bank of China (1658) Q2 2025 earnings summary

Executive summary

• Total assets reached RMB18.19 trillion, up 6.47% from prior year-end; net profit for H1 2025 was RMB49,415 million, a 1.08% year-on-year increase.

• Operating income grew 1.47% year-on-year to RMB179,525 million; net fee and commission income rose 11.59% to RMB16,918 million; non-interest income increased 18.87%.

• Customer deposits rose 5.37% to RMB16.11 trillion; total loans to customers increased 6.99% to RMB9.54 trillion.

• The bank completed a major A-share issuance, raising RMB130 billion to strengthen CET1 capital and support business growth.

• Interim cash dividend of RMB1.230 per ten shares proposed for 2025, totaling RMB14,772 million, pending shareholder approval.

Financial highlights

• Net interest income was RMB139,058 million, down 2.67% year-on-year due to lower yields, despite asset growth.

• Non-interest income rose 18.87% year-on-year, driven by intermediary and other non-interest businesses.

• Operating expenses decreased 7.04% to RMB99,808 million, mainly due to lower deposit agency fees and staff costs.

• Credit impairment losses rose 34.71% to RMB21,715 million, reflecting prudent risk management and increased loan provisions.

• Net cash inflow from operating activities was RMB183,699 million, up RMB52,767 million year-on-year.

Outlook and guidance

• The bank will focus on high-quality development, deepen its presence in rural, SME, and personal banking, and accelerate corporate and urban finance.

• Focus remains on "five priorities" (technology, green, inclusive, pension, digital finance) and supporting national strategies.

• Macro policies in China are expected to remain accommodative, supporting stable credit and banking sector growth.

• The bank aims to further optimize its asset-liability structure, increase non-interest income, and maintain stable asset quality.