Postal Savings Bank Of China Co.,Ltd. is absorbing and merging its subsidiary Youhui Wanjia Bank, which has accumulated losses of 958 million yuan over three and a half years, with its bad loan ratio surging to 6.66% in 2024.

Recently, Postal Savings Bank Of China Co.,Ltd. announced that it will absorb and merge its wholly-owned subsidiary China Post Youhui Wanjia Bank (hereinafter referred to as Youhui Wanjia Bank).

According to the announcement, the absorption and merger of Youhui Wanjia Bank will achieve three core objectives: First, strategic integration, incorporating Youhui Wanjia Bank's online operational experience into PSBC's system to strengthen online business capabilities; Second, optimizing resource allocation by integrating subsidiary business resources and talent teams to inject new momentum for bank-wide development; Third, reducing management costs by concentrating resources in areas with stronger complementarity to enhance overall operational efficiency.

Under the merger plan, upon completion of the absorption and merger, Youhui Wanjia Bank's independent legal entity status will be legally cancelled, and all its business, assets, creditor's rights, debts, and other rights and obligations will be fully inherited by PSBC. The relevant rights and obligations of Youhui Wanjia Bank's customers will not be affected in any way, and legally signed contracts and agreements will remain valid.

It is worth noting that before Youhui Wanjia Bank was absorbed and merged, there were two independent legal entity direct banks in China, with the other being CITIC Aibank. Originally, independent legal entity direct banks were expected to form a "three-legged stool," but China Merchants Bank's CMB Topology Bank ultimately failed to be formally established.

**958 Million Yuan Loss in Three and a Half Years, Bad Loan Ratio Soaring to 6.66% in 2024**

Youhui Wanjia Bank was established on January 7, 2022, with registered capital of 5 billion yuan. It is the first independent legal entity direct bank among state-owned major banks. The bank's mission is to "serve agriculture, rural areas and farmers, assist small and micro enterprises, and benefit the public," committed to creating an innovative platform for financial services supporting rural revitalization and technology-enabled better life. Currently, it has accumulated over 20 million registered users with assets totaling 12 billion yuan.

From 2022 to 2024 and the first half of 2025, Youhui Wanjia Bank achieved operating revenues of 101 million yuan, 355 million yuan, 243 million yuan, and 150 million yuan respectively, with net profits of -162 million yuan, -263 million yuan, -415 million yuan, and -118 million yuan respectively. The cumulative loss over three and a half years reached 958 million yuan.

In terms of asset quality, from 2022 to 2024, the bank's non-performing loan ratios were 0.00%, 2.28%, and 6.66% respectively. As of the end of the first half of 2025, Youhui Wanjia Bank had total assets of 12.005 billion yuan and net assets of 4.042 billion yuan.

Notably, in July 2025, Youhui Wanjia Bank was fined 4.25 million yuan for violating clearing management regulations. Meanwhile, Wang, the then head of the scenario finance division and main person responsible for the operations management team at Youhui Wanjia Bank, was fined 170,000 yuan.

It is understood that besides Youhui Wanjia Bank, PSBC has three other controlling subsidiaries: China Post Fund Management, and China Post Consumer Finance.

Data shows that from 2022 to 2024 and the first half of 2025, China Post Fund Management achieved operating revenues of 2.004 billion yuan, 1.417 billion yuan, 1.725 billion yuan, and 901 million yuan respectively, with net profits of 1.271 billion yuan, 841 million yuan, 1.030 billion yuan, and 560 million yuan respectively. As of 2025, its total assets were 14.459 billion yuan and net assets were 14.239 billion yuan.

During the same period, China Post Consumer Finance achieved operating revenues of 6.048 billion yuan, 6.952 billion yuan, 7.541 billion yuan, and 3.971 billion yuan respectively, with net profits of 443 million yuan, 522 million yuan, 804 million yuan, and 633 million yuan respectively. As of the first half of 2025, China Post Consumer Finance had total assets of 72.351 billion yuan and net assets of 7.346 billion yuan.

In fact, Youhui Wanjia's exit is not an isolated case. Since 2023, at least 19 banks including China Minsheng Bank and Bank of Beijing have successively shut down or integrated their direct banking operations.

PSBC stated directly in its announcement that "a pattern with mobile banking as the main service channel has already formed," and the absorption and merger can integrate and reuse Youhui Wanjia's online operational experience and talent team to achieve a "1+1>2" synergistic effect.

**Declining Growth in Net Profit Attributable to Parent, Mortgage Loans Account for 28.73%**

Postal Savings Bank Of China Co.,Ltd., formerly China Postal Savings Bank Co., Ltd., was established on March 6, 2007, as a commercial bank formed on the basis of reforming the postal savings management system. It is positioned to serve agriculture, rural areas, farmers, urban and rural residents, and small and medium enterprises, with a unique "self-operated + agency" model and resources.

As of June 30, 2025, the bank has established 36 first-level branches and 325 second-level branches nationwide.

From 2022 to 2024 and the first half of 2025, PSBC achieved operating revenues of 334.956 billion yuan, 342.507 billion yuan, 348.775 billion yuan, and 179.446 billion yuan respectively, with year-over-year growth of 5.08%, 2.25%, 1.83%, and 1.50%; net profit attributable to parent company of 85.224 billion yuan, 86.270 billion yuan, 86.479 billion yuan, and 49.228 billion yuan respectively, with year-over-year growth of 11.89%, 1.23%, 0.24%, and 0.85%.

During the same period, the bank's net interest margin was 2.20%, 2.01%, 1.87%, and 1.70% respectively; net interest spread was 2.18%, 1.99%, 1.85%, and 1.69% respectively.

From the above data, it can be seen that in recent years, PSBC's revenue and net profit growth have declined, while net interest margin and net profit have been under continuous pressure.

Looking at the first half of 2025 alone, PSBC achieved operating revenue of 179.446 billion yuan, up 1.5% year-over-year. Among this, net interest income was 139.058 billion yuan, down 2.67% year-over-year (the first decline in recent years); fee and commission income reached 16.918 billion yuan, up 11.59% year-over-year (compared to a 16.71% decline in the same period last year); net investment income was 19.750 billion yuan, up 64.64% year-over-year; fair value change gains (losses) were 3.671 billion yuan, down 43.09% year-over-year.

From the above data, it can be seen that PSBC's investment income had the highest growth rate at 64.64%, while fair value change gains nearly halved. The high growth in investment income became an important factor driving PSBC's revenue back to positive territory.

In terms of asset quality, as of the end of the first half of 2025, PSBC's non-performing loan ratio was 0.92%, up 0.02 percentage points from the end of the previous year. The provision coverage ratio was 260.35%, down 25.8 percentage points from the end of the previous year.

Regarding real estate loans, as of the end of the first half of 2025, PSBC's real estate loans totaled 2.74 trillion yuan, an increase of 49.118 billion yuan from the end of the previous year. Among this, corporate real estate loans were 336.392 billion yuan, and personal housing loans were 2.4 trillion yuan. The bank's real estate loan ratio was 28.73%, ranking first among the six major banks.

It is worth noting that PSBC's real estate NPL ratio in the first half of the year was 0.84%, up 0.05 percentage points from the end of the previous year.

As of the end of the first half of 2025, PSBC's total assets were 18.19 trillion yuan, up 6.47% from the end of the previous year; customer loans totaled 9.54 trillion yuan, up 6.99% from the end of the previous year; customer deposits were 16.11 trillion yuan, up 5.37% from the end of the previous year.