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Postal Savings Bank of China FY'18 net profit rises YOY

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Postal Savings Bank of China FY'18 net profit rises YOY

Postal Savings Bank of China Co. Ltd.'s net profit for the full year 2018 rose year over year on the back of a jump in net interest income.

The bank said net profit attributable to its shareholders increased to 52.31 billion yuan from 47.68 billion yuan in 2017. EPS rose to 62 fen from 59 fen.

The S&P Global Market Intelligence consensus GAAP EPS estimates for 2018 was 66 fen, the same as the normalized EPS estimate.

Net interest income went up to 234.12 billion yuan from 188.12 billion yuan in the year-ago period. Net fee and commission income grew to 14.43 billion yuan from 12.74 billion yuan in 2017. The bank's net interest margin and net interest spread for 2018 were 2.67% and 2.64%, respectively, compared to 2.40% and 2.46% in 2017.

The bank's operating income for 2018 increased to 261.25 billion yuan from 224.86 billion yuan in 2017.

Impairment losses on assets grew to 55.434 billion yuan from 26.74 billion yuan in 2017. The bank's nonperforming loan ratio rose to 0.86%, compared to 0.75% in 2017. The allowance coverage ratio climbed to 346.80% from 324.77% in 2017.

As of Dec. 31, 2018, the bank's Tier 1 capital adequacy ratio was 10.88%, up from 9.67% at the end of 2017, while its core Tier 1 capital adequacy ratio rose to 9.77% from 8.60% in 2017.

Further, the bank's board proposed a dividend of 19.37 fen per share for 2018, up from 14.71 fen per share for 2017.

As of March 25, US$1 was equivalent to 6.71 Chinese yuan.