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Postal Savings Bank of China FY'16 net profit climbs 14.2% YOY


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Postal Savings Bank of China FY'16 net profit climbs 14.2% YOY

Postal Savings Bank of China Co. Ltd.'s net profit for full year 2016 rose 14.2% year over year, partly thanks to a jump in net fee income and gains on investment securities.

Net profit attributable to shareholders of the bank increased to 39.80 billion Chinese yuan from 34.86 billion yuan in the year-ago period. EPS for the full year declined to 55 fen from 61 fen.

Net interest income dropped to 157.59 billion yuan from 179.26 billion yuan, while net fee and commission income jumped to 11.50 billion yuan from 8.67 billion yuan, the bank said March 24. Net gains on investment securities increased to 15.48 billion yuan from 946 million yuan, and net trading gains jumped to 664 million yuan from 275 million yuan.

Impairment losses on assets dropped to 16.90 billion yuan from 25.64 billion yuan in full year 2015.

The lender's operating income for the full year slipped to 189.60 billion yuan from 190.63 billion yuan.

Its net interest margin fell to 2.24% from 2.78% in the prior-year period mainly due to the consecutive cuts in benchmark rates by the central bank.

The bank's nonperforming loan ratio rose to 0.87% from 0.80% in the year-ago period. The allowance coverage ratio declined to 271.69% from 298.15% over the same period.

As of Dec. 31, 2016, the bank's Tier 1 and core Tier 1 capital adequacy ratios rose to 8.63% each from 8.53% each in Dec. 31, 2015. Its capital adequacy ratio clocked in at 11.13%, up from 10.46% at the end of 2015.

As of March 24, US$1 was equivalent to 6.89 Chinese yuan.