Postal Savings Bank of China (PSBC) has signed a 2026 Supplemental Agreement with controlling shareholder China Post Group to proactively lower agency fee rates applied to its Renminbi personal deposits taken through postal outlets.

Key Terms and Adjustments • Scope: The agreement amends the long-standing Agency Banking Businesses Framework Agreement covering PSBC’s “directly-operated + agency” model. • Effective Date: New rates apply retroactively from 1 January 2026, subject to Board approval. • Pricing: Scaled fee rates for deposits with maturities of three years and below decline by 3.86 % across the board. The largest cut is 7.5 bps on demand deposits (from 1.943 % to 1.868 %). Long-dated five-year deposits remain at 0 %. • Composite Rate: Based on 2025 deposit balances, the blended agency fee rate drops 4 bps to 1.01 %, well below the 1.50 % cap set in 2016.

Financial Impact (Illustrative, using 2025 balances) • Agency fee expense falls by RMB4.57 billion, from RMB118.52 billion to RMB113.95 billion. • PSBC’s Renminbi agency deposit base topped RMB11.26 trillion in 2025, representing c. 80 % of its total personal deposits.

Governance and Compliance • As China Post Group holds 51.87 % of PSBC, the adjustment is a continuing connected transaction under HKEX Chapter 14A. • Because the revised composite rate (1.01 %) remains below the 1.50 % cap, shareholder approval is not required; the Board—including all independent non-executive directors—has deemed the terms fair, reasonable and in the interests of all shareholders. • Independent Board Committee and Altus Capital, acting as Independent Financial Adviser, both concurred with the assessment. • PSBC will disclose annual data on composite and scaled fee rates, deposit balances, and fees, and will re-seek shareholder approval if the composite rate approaches or exceeds 1.50 %.

Strategic Rationale Management cited persistently lower market interest rates and narrowing industry net interest margins as drivers for reducing liability costs and ensuring the sustainability of the agency model. PSBC’s extensive network of 31,700 agency outlets continues to underpin its retail funding franchise, supplying over RMB11 trillion of stable, low-cost deposits.