Live Performance Conference | Postal Savings Bank of China’s 2025 net profit is expected to grow by 1.05% year-on-year, Chairman Zheng Guoyu: resolutely transforming into a lightweight bank

Every Daily Reporter | Zhang Shulin    Every Daily Editor | Bi Luming

On March 30, at the Postal Savings Bank of China’s (Postal Savings Bank) earnings release conference, in a live introduction by CEO Lu Wei on-site, the Postal Savings Bank (SH601658, share price 5.08 yuan, total market value 610.1 billion yuan) said the bank is vigorously strengthening technology finance, setting up technology-dedicated institutions, and staffing with professional teams. By the end of 2025, it had served more than 100,000 technology enterprises, with outstanding technology loans exceeding 950 billion yuan.

Scene at the Postal Savings Bank of China’s earnings release conference. Image source: Every Daily News reporter Zhang Shulin

Looking ahead, Chairman Zheng Guoyu of the Postal Savings Bank proposed that, through upgrades in specialization, lightness, comprehensiveness, ecosystem development, refinement, and digitization, the bank will drive its development model from scale-driven to value-driven.

Operating revenue and net profit in 2025 both grew year over year

In 2025, the Postal Savings Bank achieved operating revenue of 355.728 billion yuan (in accordance with Chinese Accounting Standards for Business Enterprises, the same applies below), up 1.99% year over year; it posted net profit of 87.623 billion yuan, up 1.05% year over year. Of this, net fee and commission income was 29.365 billion yuan, up 16.15% year over year.

“The Postal Savings Bank has a huge customer base of 680 million people, ranking fourth in the industry, and it is spread across urban and rural areas.” Lu Wei said this is a “tremendous treasure trove.”

The reporter noted that Lu Wei took up the role of President (CEO) of the Postal Savings Bank in December 2025. At the latest earnings release conference, he said that the Postal Savings Bank’s asset size, loan size, and deposit size growth rates are all among the top in China’s state-owned major banks. Last year, the government injected 130 billion yuan in fiscal capital, further strengthening capital strength. “The Postal Savings Bank is a bona fide state-owned major bank without question. Even more valuable is that over these years it has consistently maintained a stable and positive trend, laying a solid foundation for accelerating development going forward.” Lu Wei said.

He pointed out that, in recent years, risk conditions in the banking industry have been quite severe, especially in the retail sector. The Postal Savings Bank’s retail business has a high proportion and is hit more severely by shocks. “Against this backdrop, our risk prevention and control capabilities have stood up to the test. By the end of 2025, the non-performing loan ratio was 0.95%, the non-performing loan formation rate was 0.93%, and the provision coverage ratio was 227.94%. Our major risk indicators remained stable.” He interpreted.

On the company business side, Lu Wei said that in the “14th Five-Year Plan” period, the number of corporate customers, the scale of loans, and the total amount of customer financing all achieved a doubling. By the end of 2025, total corporate business financing reached 6.79 trillion yuan. Over the past two years, the growth rates of corporate business income and of deposits and loans have been among the best among state-owned major banks.

Lu Wei revealed that this year, it plans to increase by 300,000 corporate customers, focusing in particular on the growth of host-bank customers and strategic customers in new growth drivers.

In addition, he mentioned that the potential of its subsidiaries can be further tapped. “Our AIC (financial asset investment company) has already started operations. Going forward, we will build it into an innovative platform for coordinating investment and lending, a long-term capital platform for scientific and technological innovation, a platform for structural reform through debt-to-equity swaps, and an equity investment management platform, to form an integrated ecosystem of comprehensive financial services covering investment, lending, and financing.”

Facing the future, Lu Wei expressed confidence. One source of confidence comes from the strong alignment between the national strategies and the Postal Savings Bank’s own endowments. The Postal Savings Bank will leverage its advantages, increase resource input, and proactively adapt to the financial needs of major strategies and key areas, building a business system that is more aligned with its endowments, more balanced, and more resilient. It will find its position in serving the overall development of the economy and society, and accelerate development.

Vigorously developing non-interest businesses as the second growth curve

Looking ahead to the “15th Five-Year Plan,” Chairman Zheng Guoyu of the Postal Savings Bank pointed out:

First, adhere to specialized development. Stick to the positioning of serving agriculture, rural areas, and farmers; urban and rural residents; and small and micro enterprises. Work together with the advantages of China Post’s business flow, logistics, capital flow, and information flow endowments under its umbrella, and provide specialized integrated services to lay the foundation for the Postal Savings Bank’s distinctive advantages and brand.

Second, firmly follow a path of lightness. Resolve to transform into a light bank, and vigorously develop light-capital, light-asset, and light-liability business. Consolidate the net interest margin as the first growth curve, and develop non-interest businesses as the second growth curve to reverse the path dependency on traditional deposit-and-loan scale-driven growth. Focus on building a light development path characterized by capital intensity, controllable risk, and high-efficiency returns.

Third, promote comprehensive operations. Accelerate the shift from being a single-product provider to becoming an integrated financial services provider; shift from a financing intermediary to a services intermediary. Build more comprehensive customer-facing services, business layouts, and sources of income, and drive an all-round upgrade of both customer service and the bank’s own operations.

Fourth, deepen ecosystem development. Build capabilities to acquire customers across the entire chain and dig deeper into that effort. Rely on embedded services across all scenarios to meet customer needs across the full lifecycle, achieving close mutual coexistence between the bank and its customers, and a shared leap in value for both the bank and customers.

Fifth, implement refined management. Through scientific and refined management, accelerate the building of a modern banking management system that is intensive and efficient, professional and intelligent, excellent in service, and innovation-driven. Build a strong team of competent professionals. Rigorously control risk costs and operating costs, and allocate people, money, assets, and capital through market-oriented mechanisms—so that resource allocation is better, operating costs are lower, and operating efficiency and profitability are higher.

Sixth, accelerate digital transformation. Build an autonomous, controllable, secure, and robust financial technology platform, as well as a digital-ecosystem bank with intelligent coverage across the entire territory and open, integrated features. Fully apply digital technologies represented by artificial intelligence; break limitations of time and space and information barriers; reshape customer connections, product services, business scenarios, operating processes, and risk-control systems; and continuously improve user experience, business efficiency, and operational value.

Cover image source: Daily Economic News