Postbank (01658) announced interim results. Net profit of 48.815 billion yuan decreased by 1.5% year-on-year

According to the Zhitong Finance App, Postbank (01658) announced interim results for the six months ended June 30, 2024. The group achieved operating income of RMB 176.789 billion (same unit), a year-on-year decrease of 0.1%; net interest income of RMB 142,876 billion, an increase of 1.83%; net profit attributable to bank shareholders of RMB 48.815 billion, a decrease of 1.5% year-on-year; and earnings per share of 0.44 yuan.

The Bank anchors development goals and tasks throughout the year, comprehensively strengthens the overall management of business work, achieves an effective balance between scale growth, structural optimization, profit stability and risk prevention and control, and the development trend is stable and positive. First, profitability remains stable.

During the reporting period, the Bank actively responded to the impact of policies such as LPR and stock mortgage interest rate cuts and “integration of reporting and banking”, and achieved operating income of 176.789 billion yuan, a slight decrease of 0.11% over the previous year, maintaining basic stability; among these, net interest income and other net non-interest income increased by 1.83% and 1.54%, respectively. Second, balance assets and liabilities achieve “volume-price insurance” balance and structural optimization. On the asset side, establish a high-frequency dynamic management framework based on RAROC (risk-adjusted return ratio). While the scale of the business grows moderately, it focuses on structural adjustments and continuously improves asset allocation efficiency.

On the credit side, we insist on continuing to promote differentiated development around the balance of “volume and price insurance”. The ratio of total loans to total assets continued to increase by 0.93 percentage points compared to the end of the previous year. Among them, “two small” loans, which mainly focused on the “three rural areas” and small and micro enterprises, maintained relatively rapid growth, accounting for 47.44% of the increase in various loans.

On the non-credit side, strengthen investment and research leadership, continuously optimize multi-scenario price comparison models, and achieve efficient use of funds. On the debt side, adhere to the development concept of integrated volume and price, dynamically optimize and adjust value deposit development strategies, promote mutual transformation between deposits and AUM (personal customer asset management), and consolidate the existing advantages of low-cost debt.

In the first half of the year, the average interest rate for interest-paying debt was 1.51%, down 6 basis points from the previous year. Through intensive cultivation on both sides of assets and liabilities, interest spreads showed steady performance, with a net interest yield of 1.91%, down 1 basis point from the first quarter, and continued to maintain an excellent level among major state-owned banks. Third, risk prevention and control is accurate and effective. We always adhere to prudent and prudent risk appetite, gradually build an accurate, timely and comprehensive intelligent risk control system, and focus on improving risk prevention and control capabilities under the new situation. Strengthen risk prevention, control and mitigation in key areas, and launch the “2024 Sunshine Credit Year” campaign.

As of the end of the reporting period, the Bank's non-performing loan ratio was 0.84%, and asset quality remained stable. The provision coverage rate is 325.61%, and the risk compensation capacity is sufficient. Fourth, market influence continues to show. Continuously improve corporate governance, enhance market recognition and promote long-term value realization through good information disclosure and investor relationships. In “The Banker” (The Banker) magazine's 2024 “Global Top 1000 Banks” ranking, the Bank ranked 12th in terms of Tier 1 capital; the rating results of the three major international rating agencies continued to maintain the best level of domestic commercial banks.