Postal Savings Bank of China (1658) Q3 2024 earnings summary

Executive summary

• Operating income for the first nine months of 2024 was RMB260,567 million, up 0.07% year-over-year; net profit attributable to equity holders reached RMB75,818 million, up 0.22% year-over-year.

• Net interest income increased by 1.46% year-over-year, while net fee and commission income declined by 12.65% due to policy changes in bancassurance.

• Retail loans grew by 5.69% and corporate loans by 11.66% from the prior year-end, with a focus on supporting rural revitalization, advanced manufacturing, and green finance.

• Asset quality remained strong with an NPL ratio of 0.86% and allowance to NPLs ratio at 301.88%.

• Capital adequacy ratio stood at 14.23%, meeting regulatory requirements.

Financial highlights

• Total assets reached RMB16,746,265 million, up 6.48% from the prior year-end.

• Customer deposits increased by 7.53% to RMB15,007,335 million; personal deposits rose 6.89% and corporate deposits 12.96%.

• Net cash flows from operating activities were RMB280,989 million, a significant improvement from negative RMB28,418 million in the prior year.

• Basic and diluted EPS for the nine months was RMB0.71.

• Annualized return on weighted average equity was 11.79%, down 1.11 percentage points year-over-year.

Outlook and guidance

• Focus remains on high-quality development, supporting the real economy, and enhancing digital transformation.

• Continued emphasis on retail banking, inclusive finance, green finance, and technology-driven growth.

• The bank aims to maintain operational resilience and risk control while pursuing steady growth.