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
- 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.
- 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.
- These quarterly financial statements have not been audited.
- 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 | ||
ir@psbc.com |
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 |
- 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.
- 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.
- * 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.
- As the issuance of offshore preference shares was non-public, the register of offshore preference shareholders presented the information on nominees of placees.
- "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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Assets and Liabilities
As of September 30, 2019, the total assets of the Group amounted to RMB10,110,524 million, representing an increase of RMB594,313 million or 6.25% as compared to the end of the previous year. Total loans and advances to customers amounted to RMB4,846,845 million, representing an increase of RMB569,980 million or 13.33% as compared to the end of the previous year, of which corporate loans were RMB1,733,684 million, personal loans were RMB2,634,065 million and discounted bills were RMB479,096 million.
Total liabilities amounted to RMB9,598,929 million, representing an increase of RMB558,031 million or 6.17% as compared to the end of the previous year. Customer deposits amounted to RMB9,165,526 million, representing an increase of RMB538,086 million or 6.24% as compared to the end of the previous year, of which corporate deposits were RMB1,170,437 million, personal deposits were RMB7,992,676 million and other deposits were RMB2,413 million.
Shareholders' equity in aggregate amounted to RMB511,595 million, representing an increase of RMB36,282 million or 7.63% as compared to the end of the previous year.
Asset Quality and Capital Adequacy
As of September 30, 2019, according to the five-category classification of loans, the balance of non-performing loans of the Group was RMB40,063 million, the non-performing loan ratio was 0.83%, and the allowance coverage ratio was 391.10%.
As of September 30, 2019, the core tier 1 capital adequacy ratio was 9.55%, tier 1 capital adequacy ratio was 10.55%, and capital adequacy ratio was 13.27%, all meeting regulatory requirements.
4. APPENDICES
- Financial statements prepared based on IFRSs are attached in Appendix I to this report
- Disclosures of capital adequacy ratios, leverage ratio and liquidity coverage ratio are attached in Appendix II to this report
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5. RELEASE OF QUARTERLY REPORT
This report will be published simultaneously on the "HKEXnews" website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the website of the Bank (www.psbc.com).
By order of the Board of Directors
Postal Savings Bank of China Co., Ltd.
Du Chunye
Joint Company Secretary
Beijing, PRC
October 29, 2019
As at the date of this announcement, the Board of Directors of the Bank comprises Mr. Zhang Jinliang as Chairman and non- executive Director; Mr. Zhang Xuewen and Ms. Yao Hong as executive Directors; Mr. Han Wenbo, Mr. Tang Jian, Mr. Liu Yaogong, Mr. Liu Yue and Mr. Ding Xiangming as non-executive Directors; Mr. Ma Weihua, Ms. Bi Zhonghua, Mr. Fu Tingmei, Mr. Wen Tiejun, Mr. Chung Shui Ming Timpson, and Mr. Hu Xiang as independent non-executive Directors.
- Postal Savings Bank of China Co., Ltd. is not an authorized institution within the meaning of the Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorized to carry on banking and/or deposit-taking business in Hong Kong.
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APPENDIX I FINANCIAL STATEMENTS PREPARED BASED ON IFRSs
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
All amounts in millions of RMB unless otherwise stated
Nine months | Nine months | |||
ended | ended | |||
September 30, | September 30, | |||
2019 | 2018 | |||
(Unaudited) | (Unaudited) | |||
Interest income | 289,007 | 266,955 | ||
Interest expense | (109,827) | (93,138) | ||
Net interest income | 179,180 | 173,817 | ||
Fee and commission income | 24,533 | 22,566 | ||
Fee and commission expense | (11,085) | (11,256) | ||
Net fee and commission income | 13,448 | 11,310 | ||
Net trading gains | 2,772 | 4,538 | ||
Net gains on investment securities | 11,024 | 3,165 | ||
Net gains/(losses) on derecognition of financial assets | ||||
measured at amortized cost | 119 | 0 | ||
Net other operating gains/(losses) | 4,015 | 3,693 | ||
Operating income | 210,558 | 196,523 | ||
Operating expenses | (111,750) | (110,100) | ||
Credit impairment losses | (39,858) | (35,933) | ||
Impairment losses on other assets | (4) | (11) | ||
Profit before tax | 58,946 | 50,479 | ||
Income tax expenses | (4,602) | (3,762) | ||
Net profit | 54,344 | 46,717 | ||
Net profit attributable to: | ||||
Shareholders of the Bank | 54,288 | 46,710 | ||
Non-controlling interests | 56 | 7 | ||
Other comprehensive income | ||||
Items that will not be reclassified to profit or loss | ||||
Remeasurement of retirement benefit obligations | 0 | (85) |
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
All amounts in millions of RMB unless otherwise stated
Nine months | Nine months | |||
ended | ended | |||
September 30, | September 30, | |||
2019 | 2018 | |||
(Unaudited) | (Unaudited) | |||
Items that may be reclassified subsequently to profit or loss | ||||
Net losses on investments in financial assets at fair value | ||||
through other comprehensive income | 135 | 4,354 | ||
Other comprehensive income | 135 | 4,269 | ||
Total comprehensive income | 54,479 | 50,986 | ||
Total comprehensive income attributable to: | ||||
Shareholders of the Bank | 54,423 | 50,979 | ||
Non-controlling interests | 56 | 7 | ||
Basic and diluted earnings per share (in RMB Yuan) | ||||
Basic/Diluted | 0.64 | 0.55 | ||
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
All amounts in millions of RMB unless otherwise stated
As at | As at | |||
September 30, | December 31, | |||
2019 | 2018 | |||
(Unaudited) | (Audited) | |||
Assets | ||||
Cash and deposits with central bank | 1,133,555 | 1,202,935 | ||
Deposits with banks and other financial institutions | 50,800 | 140,351 | ||
Placements with banks and other financial institutions | 246,244 | 285,622 | ||
Derivative financial assets | 12,080 | 7,166 | ||
Financial assets held under resale agreements | 167,744 | 239,687 | ||
Loans and advances to customers | 4,690,788 | 4,149,538 | ||
Investment instruments | ||||
Financial assets at fair value through profit or loss | 262,766 | 341,662 | ||
Financial assets at fair value through other | ||||
comprehensive income - debt instruments | 201,362 | 183,350 | ||
Financial assets at fair value through other | ||||
comprehensive income - equity instruments | 1,053 | 553 | ||
Financial assets at amortized cost | 3,215,002 | 2,861,922 | ||
Property and equipment | 44,825 | 45,399 | ||
Deferred tax assets | 43,591 | 35,887 | ||
Other assets | 40,714 | 22,139 | ||
Total assets | 10,110,524 | 9,516,211 | ||
Liabilities | ||||
Deposits from banks and other financial institutions | 43,732 | 74,165 | ||
Placements from banks and other financial institutions | 30,485 | 39,845 | ||
Financial liabilities at fair value through profit or loss | 0 | 2,360 | ||
Derivative financial liabilities | 12,672 | 6,463 | ||
Financial assets sold under repurchase agreements | 161,960 | 134,919 | ||
Customer deposits | 9,165,526 | 8,627,440 | ||
Debt securities issued | 105,214 | 76,154 | ||
Other liabilities | 79,340 | 79,552 | ||
Total liabilities | 9,598,929 | 9,040,898 | ||
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CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION(CONTINUED)
All amounts in millions of RMB unless otherwise stated
As at | As at | |||
September 30, | December 31, | |||
2019 | 2018 | |||
(Unaudited) | (Audited) | |||
Equity | ||||
Share capital | 81,031 | 81,031 | ||
Other equity instruments | 47,869 | 47,869 | ||
Capital reserve | 74,648 | 74,648 | ||
Other reserves | 138,058 | 137,923 | ||
Retained earnings | 169,024 | 132,933 | ||
Equity attributable to shareholders of the Bank | 510,630 | 474,404 | ||
Non-controlling interests | 965 | 909 | ||
Total equity | 511,595 | 475,313 | ||
Total liabilities and equity | 10,110,524 | 9,516,211 | ||
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CONSOLIDATED STATEMENT OF CASH FLOWS
All amounts in millions of RMB unless otherwise stated
Nine months | Nine months | |||
ended | ended | |||
September 30, | September 30, | |||
2019 | 2018 | |||
(Unaudited) | (Unaudited) | |||
Cash flows from operating activities | ||||
Profit before income tax | 58,946 | 50,479 | ||
Adjustments for: | ||||
Amortization of intangible assets and other assets | 529 | 633 | ||
Depreciation of property and equipment, investment | ||||
properties and right-of-use assets | 4,689 | 2,707 | ||
Impairment losses on assets | 39,862 | 35,944 | ||
Interest income arising from investment instruments | (95,013) | (81,083) | ||
Interest expense arising from debt securities issued | 2,495 | 2,288 | ||
Net gains on investment securities | (11,024) | (2,986) | ||
Unrealized exchange (gains)/losses | (2,584) | (3,000) | ||
Net losses from disposal of property, equipment and other | ||||
assets | 8 | 9 | ||
(2,092) | 4,991 | |||
Net (increase)/decrease in operating assets | ||||
Deposits with central bank | 62,321 | 157,039 | ||
Deposits with banks and other financial institutions | 90,614 | 57,840 | ||
Placements with banks and other financial institutions | 1,725 | 17,098 | ||
Financial assets at fair value through profit or loss | 11,877 | 123,872 | ||
Financial assets held under resale agreements | 2,852 | (19,771) | ||
Loans and advances to customers | (580,405) | (528,532) | ||
Other operating assets | (16,951) | (19,415) | ||
(427,967) | (211,869) | |||
Net increase/(decrease) in operating liabilities | ||||
Deposits from banks and other financial institutions | (30,281) | 10,647 | ||
Placements from banks and other financial institutions | (9,234) | 1,278 | ||
Financial liabilities at fair value through profit or loss | (2,360) | (36,598) | ||
Financial assets sold under repurchase agreements | 26,917 | 20,292 | ||
Customer deposits | 528,234 | 287,270 | ||
Other operating liabilities | 23,915 | 7,921 | ||
537,191 | 290,810 | |||
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
All amounts in millions of RMB unless otherwise stated
Nine months | Nine months | |||
ended | ended | |||
September 30, | September 30, | |||
2019 | 2018 | |||
(Unaudited) | (Unaudited) | |||
Net cash flows from operating activities before tax | 107,132 | 83,932 | ||
Income tax paid | (20,562) | (7,544) | ||
Net cash generated from/(used in) operating activities | 86,570 | 76,388 | ||
Net cash flows from operating activities include: | 197,845 | |||
Interest received | 182,977 | |||
Interest paid | (97,643) | (93,278) | ||
Cash flows from investing activities | ||||
Cash received from sale and redemption of investment | 432,405 | |||
instruments | 571,353 | |||
Cash received from income arising from investment | 103,138 | |||
instruments | 94,607 | |||
Cash paid for purchase of investment instruments | (735,453) | (718,092) | ||
Cash paid for purchase of property, equipment, intangible | (3,077) | |||
assets and other long-term assets | (3,785) | |||
Cash received from disposal of property and equipment, | 24 | |||
intangible assets and other long-term assets | 351 | |||
Net cash generated from/(used in) investing activities | (202,963) | (55,566) | ||
Cash flows from/(used in) financing activities | ||||
Capital received from non-controlling interests for | - | |||
investment in subsidiary | 500 | |||
Dividend distribution | (18,197) | (14,311) | ||
Interests paid on debt securities issued | (2,266) | (2,056) | ||
Cash received from issuance of debt securities | 52,546 | 7,744 | ||
Repayments of debt securities | (23,714) | (5,750) | ||
Cash paid relating to other financing activities | (2,310) | - | ||
Net cash generated from/(used in) financing activities | 6,059 | (13,873) | ||
Effect of foreign exchange rate changes on cash and cash | ||||
equivalents | 2,407 | 1,623 | ||
Net increase/(decrease) in cash and cash equivalents | (107,927) | 8,572 | ||
Balance of cash and cash equivalents at the beginning of | 402,420 | |||
the period | 322,935 | |||
Balance of cash and cash equivalents at the end of the | ||||
period | 294,493 | 331,507 | ||
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APPENDIX II DISCLOSURES OF CAPITAL ADEQUACY RATIOS, LEVERAGE RATIO AND LIQUIDITY COVERAGE RATIO
1. TABLE OF CAPITAL ADEQUACY RATIOS
In millions of RMB, except for percentages
September 30, 2019 | December 31, 2018 | |||
Item | The Group | The Bank | The Group | The Bank |
Calculated in accordance with the Administrative Measures for the Capital of Commercial Banks (Provisional) promulgated by China Banking and Insurance Regulatory Commission:
Net core tier 1 capital | 457,698 | 454,977 | 421,678 | 419,107 |
Net tier 1 capital | 505,633 | 502,846 | 469,605 | 466,976 |
Net capital | 635,651 | 632,590 | 593,729 | 590,842 |
Core tier 1 capital adequacy | ||||
ratio (%) | 9.55 | 9.52 | 9.77 | 9.74 |
Tier 1 capital adequacy ratio (%) | 10.55 | 10.52 | 10.88 | 10.85 |
Capital adequacy ratio (%) | 13.27 | 13.24 | 13.76 | 13.73 |
2. TABLE OF LEVERAGE RATIO
In millions of RMB, except for percentages
September 30, | June 30, | March 31, | December 31, | |
Item | 2019 | 2019 | 2019 | 2018 |
Net tier 1 capital | 505,633 | 502,846 | 488,067 | 469,605 |
Balance of adjusted on- and | ||||
off-balance sheet assets | 10,559,371 | 10,540,226 | 10,556,374 | 9,871,166 |
Leverage ratio (%) | 4.79 | 4.77 | 4.62 | 4.76 |
3. TABLE OF LIQUIDITY COVERAGE RATIO
In millions of RMB, except for percentages
September 30, | December 31, | |
Item | 2019 | 2018 |
High-quality liquid assets | 2,056,364 | 1,578,769 |
Net cash outflow for the next 30 days | 972,841 | 701,046 |
Liquidity coverage ratio (%) | 211.38 | 225.20 |
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Postal Savings Bank of China Co. Ltd. published this content on 29 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2019 13:41:02 UTC