Postal Savings Bank Of China Co Ltd (OTCPK:PSBKF)

Half Year 2026 Postal Savings Bank of China Co Ltd Earnings Call (Chinese, English) Transcript

Aug 28, 2026 / 09:30 AM GMT

Release Date Price: $0.6691

Transcript

Key Points

Positve

Postal Savings Bank Of China Co Ltd (PSTVY) reported solid H1 2026 results with operating income up 7.24% year-on-year and net profit attributable to shareholders up 4.26%, demonstrating resilience.
The bank's net interest margin (NIM) of 1.63% remains a leading figure among major state-owned peers, with the decline slowing significantly by 14 basis points, indicating improved liability cost management.
Strong growth in non-interest income, which rose 12.14% year-on-year, with fee-based income and other non-interest income both achieving double-digit growth, supporting the bank's 'second growth curve' strategy.
Asset quality remains stable with an overall NPL ratio of 1.00% and a corporate loan NPL ratio of 0.52%, which improved by 2 basis points, while the bank is actively managing retail risk with new loan quality improving.
The bank has made significant strides in technology and AI, with 370 large model-powered scenarios, a 40% increase in approval efficiency, and a 72% reduction in large model deployment costs, enhancing operational efficiency.
Postal Savings Bank Of China Co Ltd (PSTVY) increased its interim dividend payout ratio to 31%, up 1 percentage point from the previous year, demonstrating a commitment to shareholder returns.

Negative

The bank faces ongoing pressure on its net interest margin (NIM) due to weak credit demand and limited room for further deposit cost reductions, which could impact future profitability.
Retail asset quality is under pressure, with the overall NPL ratio, overdue loan ratio, and special mention loan ratio all increasing by 5, 8, and 15 basis points respectively from the beginning of the year.
The personal loan NPL formation ratio remains elevated at 1.67%, and while the pace of deterioration is slowing, the bank continues to face headwinds in its retail loan portfolio.
The bank's cost-to-income ratio (CIR) declined by 4.17 percentage points year-on-year, but the absolute level of operating costs remains a focus as the bank invests heavily in technology and transformation.
Despite strong corporate loan growth, the bank's corporate loan book still accounts for less than 50% of total loans, which is lower than the 60% average for major state-owned banks, indicating a structural imbalance.
The bank acknowledges that it is not insulated from the industry-wide challenges of low interest rates and intense competition, which could continue to pressure revenue growth and asset quality in the future.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

601658.SS - Postal Savings Bank of China Co Ltd
Half Year 2026 Postal Savings Bank of China Co Ltd Earnings Call (Chinese, English)
Aug 28, 2026 / 09:30AM GMT

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Presentation
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Unidentified_1 [1]
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Welcome to the 2026 Interim Results Announcement of PSBC.

I'm Du Chun Ye, Vice President and for Service Trade PSBC. I will moderate today's session.

We adopted a hybrid mode with on-site broadcasting plus phone plus text and also provided simultaneous Chinese and English translation so that we could have a comprehensive in-depth. Discussion with you. With that, I'd like to present to you the PSDC team presenting today. They are President, CCO, Mr. Lu Wei.

Vice President, CRO, Ms. Yao Hong.

Vice President, Mr. Xu Xue Ming.

Vice President, CIO, Mr. Liu Xing Zhuang.

Also, we are joined by Director Liu Xing An, Director

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