Users of iOS and Android can directly download mobile banking by scanning the QR code.
PSBC Announces First Annual Results after Listing
Net profit increased by 14.11% in 2016
On 24 March 2017, Postal Savings Bank of China Co., Ltd. (“PSBC” or the “Bank”, Stock Code: 1658.HK) announced the audited annual results of the Bank for the year ended December 31, 2016. (the “Reporting Period”).
In the previous year, in face of the complicated economic and financial environment and the arduous reform and development tasks, the Bank adhered to a prudent and solid operational philosophy, considered building PSBC a first-tier large retail bank as the general direction, and actively adapted to the economic new normal, deepened reform, adjusted the Bank’s structures, controlled risks in a strict manner, and successfully fulfilled all tasks and achieved remarkable results.
PSBC’s asset grew rapidly and the profitability rose steadily. As of at the end of 2016, the Bank’s asset amounted to RMB 8.27 trillion, representing an increase of 13.28% as compared to the previous year. Total deposit balance amounted to RMB 7.29 trillion, representing an increase of 15.56% as compared to the previous year. Total loans to customers amounted to RMB 3.01 trillion, representing an increase of 21.80% as compared to the previous year. Net profits amounted to RMB 39,776 million for the year, representing an increase of 14.11% as compared to the previous year.
Deepening reform was speeded up and the development momentum was fully inspired. In 2016, the Bank completed initial public offering of H Shares which attracted enormous investments from notable overseas and domestic investors, raising HKD 59.15 billion, which was the largest IPO project in the last two years globally, and effectively enhanced the Bank’s corporate governance and comprehensive competitiveness. Carrying forward the independent business line reform, the Bank set up Sannong Finance Department to further enlarge, strengthen and specialize PSBC’s proficiency of providing Sannong financial services. The comprehensive operation arrangement accelerated. PSBC Consumer Finance has made a good start in its business development and risk governance, and the bank proactively applied for the incorporation of PSBC Financial Lease Company .
Transformation development demonstrated fruitful achievements, and the business structure was constantly optimized. In 2016, the Bank’s retail finance business remained stable with positive progress. As of the end of the reporting period, the number of the Bank’s personal customer accounts reached 522 million; the balance of the Bank’s personal deposits was RMB 6.21 trillion, representing an increase of RMB 823,536 million, or by 15.29%, as compared to the end of the previous year; the Bank’s total personal loans amounted to RMB 1.58 trillion, representing an increase of RMB 359,605 million, or by 29.41%，as compared to the end of the previous year. The Bank intensively promoted the cooperation platform among government, banks and guarantors, to contribute efforts into serving contemporary agriculture and increase the scale of loans to new agriculture operation entities; developed small and micro finance businesses of “Innovation and Entrepreneurship” related to the fields of people’s livelihood and government-bank cooperation, accelerated transformation of traditional financial businesses; formed the “Family One ” enterprises alliance in the consumer industry and launched a “Cheer up for your happiness” thematic marketing campaign, increasing personal consumer loan by RMB 364,723 million, representing an increase of 49.49% as compared to the end of the previous year, leaving a balance over RMB 1 trillion. With the corporate financial services expanding rapidly, corporate deposits increased by RMB 157,417 million, representing an increase of 17.16% as compared to the end of the previous year; prioritized corporate loans national strategic industries and emerging industries, promoted linkage between investment, loans and debts to meet the diverse fundraising needs of clients and increased by RMB 98,412 million, representing an increase of 10.03% as compared to the end of the previous year. Financial market business created the “financing + intelligence” business model in line with the supply side structural reform, and actively served to stabilize growth, adjust structure, benefit the people and prevent risks. Meanwhile, the Bank’s net fee and commission income increased rapidly, representing an increase of 32.59%; the Bank proactively carried out the fee- and commission- based businesses, in which the Bank’s wealth management fee income represented an increase of 103.15%, and the custodian business income representing an increase of 89.13%.
In addition, the Bank actively engaged in the development of internet finance, by fully initiated the internet finance development plan and emphasized the establishment of “PSBC e-loan” product series, with doubled trading volume of e-payment. In 2016, the Bank had 185 million electronic banking customers, increased by 23.47% as compared to the end of the previous year; the transaction substitution ratio of the Bank reached 81.78%, representing an increase of 10.08 percentage points as compared to the previous year.
Risk management mechanism produced remarkable results, and the quality of asset remained superior. The Bank widely promoted comprehensive risk management system, enhanced capital constraints, determined the risk preferences and risk management policy, optimized the mechanism of dynamic adjustment of risk quota; promoted reasonable asset allocation, optimized asset quality control, implemented the dual control mechanism on the increase and balance of non-performing loans, prudently and fully accrued impairment allowance; actively established the internal ratings system and risk data mart to improve quantitative risk management standard and decision making supporting ability; steadfastly carried forward the building of internal control system and continuously reinforced the basis of internal control management. As of the end of 2016, the Bank’s non-performing loan ratio was 0.87%; allowance coverage ratio was 271.69%, reflecting the superior asset quality.
Operation Capability was continuously enhanced, and management efficiency fully enhanced. The Bank actively carried out independent technological innovation to promote the Thirteenth Five Year IT Plan construction, and successfully put forward 94 key projects including the internet finance cloud platform and retail loan factory. The Bank realized a groundbreaking progress in block–chain technique application and the Bank’s software development center was certified by the international CMMI3 accreditation. The Bank kept the overall information technology risk under control and maintained a comparable high successful trading rate of core business systems. The Bank reinforced asset and liability coordination management, enhanced the linkage between asset allocation and capital constraint. The Bank facilitated the coordinative and stable growth among asset and liability, risk and income. The Bank perfected interest rate management mechanism and launched a pricing management system and optimized structuring approach of the FTP curve, strengthening the pricing ability in a practical manner. By optimizing budget management measurement, the Bank strengthened the centralized management of financial capital, and actively promoted financial management transformation, which aggregately lead to a firm foundation for financial management with outstanding benefits.
2017 is a new beginning to start the Bank’s journey to build a large international leading financial institution. On the occasion of the tenth anniversary of the establishment of the Bank, facing the complicated and challenging economic tendency and business situations globally and domestically, the Bank will adapt to the economic new normal and stick to the Bank’s large retail bank positioning, insist on pursuing progress in a stable growth, and firmly build up a value creation philosophy. With quality and efficiency improvement as the overall goal and reform as the motivation, the Bank will continue to accelerate transformation, reinforce the advantage of core business, actively explore emerging business horizons, endeavor to boost basic support, increase income, reduce cost, control risks, improve technology, further strengthen the Bank’s comprehensive competitiveness, and strive to build up an outstanding listed bank.