Summary of Key Highlights
In the first half of 2026, Postal Savings Bank of China (PSBC) demonstrated steady progress with both increased performance and profitability. For the first time, it entered the top ten global banks in terms of international rankings. The bank has refined its asset and liability management, focusing its loans on key areas and improving the quality and efficiency of its deposits. Non-interest income has become a new growth driver, with all five major business segments contributing to its success. PSBC has also strengthened risk control through digital initiatives and increased its dividend payout to shareholders, setting a positive tone for its “15th Five-Year Plan” period.
Detailed Analysis
1. Solid Performance with Growth in Both Scale and Profitability
PSBC’s financial strength has increased in the first half of the year: total assets approached 20 trillion yuan (19.82 trillion yuan), a 6% increase from the beginning of the year; loans issued totaled 10.27 trillion yuan, up 6.4%; and deposits amounted to 17.44 trillion yuan, an increase of nearly 900 billion yuan. The bank’s profitability remained stable, with revenue rising by 7.26% to 192.4 billion yuan and net profit by 4.57% to 51.6 billion yuan. Notably, it has made its first entry into the top ten global banks according to the “Banker” magazine and continues to lead in China among the three major international rating agencies, indicating a rise in its global profile.
2. Optimized Asset and Liability Management
- Loan Portfolio: PSBC has directed its loans towards areas supported by the state, such as rural economies and key development initiatives (e.g., technology finance and green finance). In the first half of the year, it issued an additional 618.6 billion yuan in loans to support the real economy.
- Deposit Management: The bank has focused on attracting high-quality deposits with lower costs. The loan-to-deposit ratio increased by 0.54 percentage points, indicating more efficient use of deposits to generate revenue. The net interest margin (the proportion of income from interest differences) was 1.63%, which is above industry average. The cost-income ratio decreased by 2.68 percentage points, indicating more cost-effective operations.
3. Non-Interest Income as a New Growth Driver
While traditional interest income remains a significant source of revenue, PSBC has expanded its non-interest income sources, such as fees and wealth management services. This segment’s contribution has increased by 1.04 percentage points, becoming a new growth driver:
- Wealth Management: The number of wealth management clients increased by 23%, and the total assets under management (AUM) reached 19 trillion yuan, with high-net-worth clients (category “Fu Jia” and above) growing by 10.59%.
- Payment and Settlement: Electronic payment transactions amounted to 3.55 trillion yuan, reflecting the growth in consumer demand.
- Investment Banking: Business revenue from helping companies issue bonds increased by 16%, and the scale of bond underwriting and distribution grew by 24.7%.
- Trading Banking: The volume of corporate foreign exchange derivatives transactions more than tripled.
- Financial Markets: Revenue from bill trading increased by 36%, and the scale of asset management services exceeded 6.5 trillion yuan. These improvements reflect the effectiveness of PSBC’s strategic initiatives.
4. Robust Risk Control with Digital Support
PSBC has not relaxed its risk management efforts and has adopted digital tools, such as the “Look to the Future” system, to assess potential risks. In the first half of the year, this system was used to approve loans for 11,000 customers, with a total amount of 2.66 trillion yuan, a 10.6% increase from the previous year. This approach helps the bank provide loans while identifying risks in advance, ensuring a stable business environment.
5. Enhanced Shareholder Returns
PSBC is committed to rewarding its shareholders by increasing dividend payouts. The annual dividend for 2025 was 26.2 billion yuan, and for the first half of 2026, the proposed dividend ratio is 31% (higher than before). This means investors who hold PSBC shares will receive a larger cash return, reflecting the bank’s positive financial performance.
In summary, PSBC has maintained a solid foundation in its core business areas while actively pursuing new growth opportunities. It has also demonstrated its commitment to shareholder returns, setting a promising start for its “15th Five-Year Plan” period.