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China's Postal Savings Bank nine-month profit rises on lower deposit costs

By Reuters News


Overview

  • China retail bank's nine-month net profit rose 4.45% yr/yr

  • Operating income for the period increased 6.21% yr/yr

  • Net interest income grew 4.58% yr/yr, supported by lower deposit costs


Outlook

  • Postal Savings Bank of China did not provide specific guidance for future quarters or the full year in the press release


Result Drivers

  • NON-INTEREST INCOME - Co said non-interest income rose 12.5% yr/yr, with higher contributions from wealth management, payment and settlement, investment banking, transaction banking and financial market business

  • LOWER DEPOSIT COSTS - Co said net interest income grew due to lower deposit costs, achieved by optimizing deposit structure and expanding low-cost proprietary deposits

  • ASSET GROWTH - Co said loan growth was focused on key sectors, with loans related to financial priorities and county areas growing faster than total loans


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

9M Net Interest Income

RMB 220.14 bln

9M CET1 Capital Ratio

10.21%

9M Net Income Attributable

RMB 80.06 bln

9M Net Interest Margin

1.60%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for Postal Savings Bank of China Co Ltd is HK$6.30, about 12.2% above its October 30 closing price of HK$5.62

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago


Reuters Recommended Reads

  • Oct 30 - Bank of China nine-month operating income rises 7%

  • Oct 30 - China's ICBC Q3 profit rises on higher interest income

  • Oct 30 - Agricultural Bank of China's nine-month net profit rises 7%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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