Postal Savings Bank of China (PSBC) reported H1 2026 net profit of RMB 51.67 billion, up 4.57 % year on year, driven by a 7.24 % increase in operating income to RMB 192.53 billion. Net interest income rose 5.82 % to RMB 147.15 billion, while net fee and commission income expanded 12.20 % to RMB 18.98 billion, lifting the share of non-interest income by 1.03 percentage points to 23.57 %.

Total assets grew 6.07 % from the prior year-end to RMB 19.82 trillion. Customer deposits advanced 5.42 % to RMB 17.44 trillion, and the loan book expanded 6.41 % to RMB 10.27 trillion, pushing the loan-to-deposit ratio up 0.54 percentage point to 58.87 %.

Net interest margin narrowed 7 basis points to 1.63 %, reflecting lower funding costs and proactive asset-liability repricing. The cost-to-income ratio improved to 50.63 %, down 4.17 percentage points year on year.

Asset quality remained stable: the non-performing loan ratio stood at 1.00 %, up 5 basis points from year-end 2025, while the allowance-to-NPL coverage ratio was 214.93 %. Credit impairment charges rose to RMB 36.03 billion, reflecting loan growth and prudent provisioning.

Capital buffers stayed solid. The common equity tier 1 ratio was 10.04 %, tier 1 ratio 11.49 % and total capital adequacy ratio 14.19 %, all above regulatory minima. The leverage ratio was 5.65 %.

The board proposed an interim cash dividend of RMB 1.330 per ten shares, totaling approximately RMB 15.97 billion, with payment dates set for December 2026 (A-shares) and January 2027 (H-shares), subject to shareholder approval.

During the period PSBC issued RMB 30 billion of undated additional tier 1 capital bonds and RMB 40 billion of tier 2 capital bonds, and fully redeemed RMB 30 billion of 2021 undated capital bonds. MSCI upgraded the bank’s ESG rating to AAA.