PSBC posts 20% net profit rise in 2017

The Postal Savings Bank of China, the country’s largest retail lender, announced on Tuesday a net profit of 47.7 billion yuan (US$7.59 billion) for 2017, up by 19.94 percent compared 2016, according to its annual report.

The commercial bank said that the stable growth of earnings was mainly due to its proactive response to market changes, adjustment in assets and liabilities structure, and a steady growth in net interest income.

During the reporting period, the Beijing-based lender saw its net interest income jump by 19.37 percent year on year to 188.1 billion yuan. Its net interest margin and net interest spread, two key gauges for measuring profitability, were up 16 basis points and 12 basis points respectively from 2016, standing at 2.40 percent and 2.46 percent.

As of the end of 2017, the Postal Savings Bank extended 1.94 trillion yuan in personal loans, up more than one fifth from the previous year to meet the transformation and upgrading needs of household consumption, while the money going to its corporate clients was up 28.95 percent to 1.39 trillion yuan during the same period.

At the end of December 2017, the bank’s non-performing loan ratio stood at 0.75 percent, down by 0.12 percentage points from a year before.

Li Guohua, chairman of the state-owned lender, said they have adhered to a prudent risk management strategy and thus maintained good asset quality, which is not only “the foundation” of the bank but also their “core strength.”

The Postal Savings Bank attributed its remarkable results in the past year to serving the "real" economy, including small and medium enterprises, according to Lyu Jiajin, president of the bank.