Postal Savings Bank of China (1658) Q4 2025 earnings summary

Executive summary

• Achieved steady growth in scale and profitability in 2025, with total assets reaching RMB18.68 trillion, up 9.35% from the prior year-end, and net profit rising 1.05% year-over-year to RMB87.62 billion.

• Maintained strong asset quality, with a non-performing loan (NPL) ratio of 0.95% and allowance to NPLs ratio of 227.94%.

• Completed a significant capital increase, issuing 20.93 billion A-shares to strategic investors, raising RMB130 billion to strengthen CET1 capital.

• Continued to lead among major state-owned banks in deposit and loan growth, digital transformation, and inclusive finance.

Financial highlights

• Operating income reached RMB355.87 billion, up 1.93% year-over-year; net interest income was RMB281.62 billion, down 1.57% due to lower interest rates.

• Net fee and commission income rose 16.15% to RMB29.37 billion, driven by wealth management and investment banking.

• Total loans to customers increased 8.25% to RMB9.65 trillion; customer deposits grew 8.20% to RMB16.54 trillion.

• Cost-to-income ratio improved to 62.31% from 64.01% in 2024.

• Capital adequacy ratio stood at 14.52%, CET1 ratio at 10.53%, and leverage ratio at 5.87%.

• Dividend payout ratio maintained at 30%, with total cash dividends for 2025 at RMB26.22 billion.

Outlook and guidance

• Focus on transitioning from scale-driven to value-driven growth, boosting non-interest income, and enhancing digital and intelligent transformation.

• Plans to further optimize asset and liability structure, improve capital quality, and strengthen risk control.

• Will continue to advance the "five priorities" of technology, green, inclusive, pension, and digital finance.

• Management expects a stable macroeconomic environment in 2026, with proactive fiscal and accommodative monetary policy supporting growth.