Postal Savings Bank of China : Third Quarterly Report of 2019 2019-10-29

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

POSTAL SAVINGS BANK OF CHINA CO., LTD.

中 國 郵 政 儲 蓄 銀 行 股 份 有 限 公 司

(A joint stock limited liability company incorporated in the People's Republic of China)

(Stock Code: 1658)

(Stock Code of Preference Shares: 4612)

Postal Savings Bank of China Co., Ltd.

Third Quarterly Report of 2019

The Board of Directors (the "Board") of Postal Savings Bank of China Co., Ltd. (the "Bank") hereby announces the results of the Bank and its subsidiary (collectively, the "Group") for the nine months ended September 30, 2019. This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

1. IMPORTANT NOTICE

1. The Board of Directors, the Board of Supervisors, Directors, Supervisors and members of the senior management of the Bank undertake that the information in this quarterly report is true, accurate and complete, contains no false record, misleading statement or material omission, and assume individual and joint and several liabilities for the information in this quarterly report.
2. The Third Quarterly Report of 2019 has been considered and approved at the meeting of the Board of Directors of the Bank held on October 29, 2019. There were 14 directors eligible for attending the meeting, among whom 11 attended in person, and 3 attended by proxy. Mr. Zhang Xuewen, the Director appointed Ms. Yao Hong, the Director, Mr. Han Wenbo, the Director appointed Mr. Liu Yaogong, the Director, and Ms. Bi Zhonghua, the Director appointed Mr. Hu Xiang, the Director to attend the meeting and vote on behalf.
3. These quarterly financial statements have not been audited.
4. Mr. Zhang Jinliang, Legal Representative of the Bank, Mr. Zhang Xuewen, the person in charge of finance of the Bank, and Mr. Liu Yucheng, General Manager of the Finance and Accounting Department of the Bank, hereby represent and warrant that the financial statements contained in this quarterly report are true, accurate and complete.

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2. CORPORATE INFORMATION

2.1 Basic information

			Stock exchange on which
	Stock name	Stock code	shares are listed
H shares	PSBC	1658	The Stock Exchange of
			Hong Kong Limited
Offshore preference	PSBC	4612	The Stock Exchange of
shares	17USDPREF		Hong Kong Limited
Board Secretary and Joint Company Secretary:
Name	Du Chunye
Correspondence address	No. 3 Financial Street, Xicheng District, Beijing (Postcode:
	100808)
Telephone	86-10-68858158
Fax	86-10-68858165
E-mail	[e-mail]

2.2 Major accounting data and financial indicators

Financial information set out in this quarterly report has been prepared in accordance with the International Financial Reporting Standards ("IFRSs"). Unless otherwise specified, it is the data of the Group, and is presented in RMB.

Expressed in millions of RMB, unless otherwise stated

			Changes as
			compared to
	September 30,	December 31,	the end of
	2019	2018	the previous
	(Unaudited)	(Audited)	year (%)
Total assets	10,110,524	9,516,211	6.25
Total loans and advances to
customers	4,846,845	4,276,865	13.33
Allowance for impairment on
loans	156,057	127,327	22.56
Total liabilities	9,598,929	9,040,898	6.17
Customer deposits	9,165,526	8,627,440	6.24
Equity attributable to
shareholders of the Bank	510,630	474,404	7.64

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Expressed in millions of RMB, unless otherwise stated

			Changes as
	Nine months	Nine months	compared to
	ended	ended	the same
	September 30,	September 30,	period of the
	2019	2018	previous year
	(Unaudited)	(Unaudited)	(%)
Operating income	210,558	196,523	7.14
Net profit	54,344	46,717	16.33
Net profit attributable to
shareholders of the Bank	54,288	46,710	16.22
Net cash flows from operating
activities	86,570	76,388	13.33
Basic earnings per share
(RMB) (1)	0.64	0.55	16.36
Diluted earnings per share
(RMB) (1)	0.64	0.55	16.36
Return on weighted average net			An increase of
assets (%, annualized) (1)			1.09 percentage
	15.69	14.60	points

1. Without the deduction of non-recurring gains and losses.

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2.3 Number of ordinary shareholders and shareholdings

As of the end of the reporting period, the Bank's total ordinary shareholders amounted to 2,916. Among them, there were 2,911 H shareholders and 5 domestic shareholders. The top 10 ordinary shareholders are as follows:

				Changes in
				the number
				of shares	Number
				during the	of shares
		Number of	Shareholding	reporting	pledged or
		shares held	percentage	period	locked-up
Shareholders	Class of shares	(share)	(%)	(share)	(share)
China Post Group Corporation*	Domestic shares	55,847,933,782	68.92	0	None
HKSCC Nominees Limited	H shares	19,842,748,660	24.49	213,000	Unknown
China Life Insurance Company Limited*	Domestic shares	3,341,900,000	4.12	0	None
China Telecommunications Corporation*	Domestic shares	1,117,223,218	1.38	0	None
Zhejiang Ant Small and Micro Financial
Services Group Co., Ltd.	Domestic shares	738,820,000	0.91	0	None
Shenzhen Tencent Domain Computer
Network Company Limited	Domestic shares	128,530,000	0.16	0	None
LI KIU	H shares	207,000	0.0003	0	Unknown
CHENG SUI SUN	H shares	173,000	0.0002	0	Unknown
WONG WAI FUK	H shares	173,000	0.0002	0	Unknown
TSEUNG KWOK FAI	H shares	139,000	0.0002	139,000	Unknown

Notes: (1) The shareholdings of H shareholders are calculated based on the number of shares listed in the register of shareholders of the Bank set up by the H Share Registrar.

1. The total number of shares held by HKSCC Nominees Limited, as the nominee, is the total number of H shares held by all institutions and individual investors registered with the company as of September 30, 2019.
2. * indicates the state-owned shareholders.

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2.4 Number of offshore preference shareholders and shareholdings

As of the end of the reporting period, the total number of offshore preference shareholders (or proxies) of the Bank was 1. Top 10 offshore preference shareholders (or proxies) of the Bank are as follows:

			Increase or	The amount		Number of
			decrease	of shares		shares	Number
			during the	held at		subject	of shares
			reporting	the end	Shareholding	to selling	pledged or
	Nature of	Class of	period	of the period	percentage	restrictions	locked-up
Name of shareholders	shareholders	shares	(share)	(share)	(%)	(share)	(share)
The Bank of New York		Offshore
Depository (Nominees)	Foreign legal	preference
Limited	person	shares	-	362,500,000	100	-	Unknown

Notes: (1) The shareholdings of offshore preference shareholders are based on the information listed in the register of offshore preference shareholders of the Bank.

1. As the issuance of offshore preference shares was non-public, the register of offshore preference shareholders presented the information on nominees of placees.
2. "Shareholding percentage" refers to the percentage of the number of offshore preference shares held by offshore preference shareholders to the total number of offshore preference shares.

3. BRIEF ANALYSIS ON OVERALL OPERATING ACTIVITIES IN THE THIRD QUARTER

Financial Results

For the nine months ended September 30, 2019, the net profit of the Group amounted to RMB54,344 million, representing an increase of 16.33% as compared to the same period of the previous year. Annualized return on average total assets was 0.74% and annualized return on weighted average net assets was 15.69%.

For the nine months ended September 30, 2019, the operating income of the Group amounted to RMB210,558 million, representing an increase of 7.14% as compared to the same period of the previous year.

Net interest income was RMB179,180 million, representing an increase of 3.09% as compared to the same period of the previous year. Net interest spread was 2.47%, representing a decrease of 19 basis points as compared to the same period of the previous year. Net interest margin was 2.52%, representing a decrease of 15 basis points as compared to the same period of the previous year. Net fee and commission income amounted to RMB13,448 million, representing an increase of 18.90% as compared to the same period of the previous year. Cost-to-income ratio was 52.37%, representing a decrease of 2.96 percentage points as compared to the same period of the previous year.

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