Postal Savings Bank of China (1658) Q4 2024 earnings summary

Executive summary

• Achieved steady growth in 2024 with total assets up 8.64% year-over-year to RMB17.08 trillion and net profit attributable to equity holders rising 0.24% to RMB86.48 billion.

• Maintained industry-leading asset quality with a non-performing loan (NPL) ratio of 0.90% and robust provision coverage at 286.15%.

• Continued focus on "five priorities": technology finance, green finance, inclusive finance, pension finance, and digital finance, with significant advances in each area.

• Distributed total cash dividends of RMB25.94 billion for 2024, maintaining a 30% payout ratio.

Financial highlights

• Operating income increased 1.81% year-over-year to RMB349.13 billion; net interest income rose 1.53% to RMB286.12 billion.

• Net fee and commission income declined 10.51% to RMB25.28 billion, mainly due to policy changes affecting bancassurance.

• Total loans to customers grew 9.38% to RMB8.91 trillion; customer deposits rose 9.54% to RMB15.29 trillion.

• Cost-to-income ratio remained high at 64.01%, reflecting ongoing investment in technology and network.

• Capital adequacy ratio improved to 14.44%, with CET1 at 9.56% and Tier 1 at 11.89%.

Outlook and guidance

• Management expects continued stable growth in 2025, focusing on optimizing the balance sheet, enhancing risk management, and driving digital transformation.

• Will further integrate "five priorities" into business strategy, aiming for breakthroughs in high-quality development and increased support for rural revitalization, SMEs, and green finance.

• Anticipates a challenging external environment but sees strong resilience and potential in China's economy.