Postal Savings Bank of China Company Overview and Analysis

Postal Savings Bank of China is a state-owned bank that was established in 2007. It was founded by the Chinese government to provide banking services to rural areas and underserved communities.

The bank's headquarters are located in Beijing, China. It has a large network of branches and ATMs across the country.

Postal Savings Bank of China offers a wide range of financial services, including personal banking, corporate banking, and investment products. Its services cater to individual customers, small and medium-sized enterprises, and large corporations.

The bank's mission is to provide financial services to the public and promote economic development in China.

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Postal Savings Bank of China has its headquarters in Beijing. It's the fifth-largest commercial bank in China by deposits and the sixth largest by assets.

The bank was established in 2007 as the postal savings and remittance business of its parent, China Post Group. It completed its joint-stock reform in 2012.

The bank boasts an impressive customer base, with over 600 million individual customers and more than 39,000 outlets across China.

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PSBC has limited credit exposure to risky sectors, which is a big plus in my book. Low-risk loans, including infrastructure and home mortgages, represented less than half of total loan books.

Postal Savings Bank of China Co., Ltd is a significant player in the Chinese banking industry.

The bank is headquartered in Beijing, which is a strategic location for its operations.

It is the fifth-largest commercial bank in China by deposits and the sixth largest by assets, indicating its substantial financial presence.

The bank was established in 2007 as the postal savings and remittance business of its parent, China Post Group, marking the beginning of its journey.

It completed its joint-stock reform in 2012, which likely brought significant changes to its management and operations.

The bank boasts an impressive network with over 39,000 outlets, making it one of the largest distribution networks in China.

It also has a massive customer base with over 600 million individual customers, which is among the largest in China.

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Postal Savings Bank of China has a strong retail deposit base, with a market share of 9.5% in China.

Its vast deposit base is supported by its presence in rural banking, where it has a long history of operations in postal savings and remittance outlets.

PSBC operates the largest branch network, covering all cities and nearly 99% of counties, which helps it maintain its strong deposit base.

However, this comes at a cost, as the bank must pay agency fees to its parent for deposits absorbed through agency outlets that were owned by its parent, which contribute over 60% of total deposits.

Postal Savings Bank of China's agency rate cut has exceeded market expectations, which is a significant development for the bank.

The bank's strong retail deposit base is a major factor in its success, with a market share of 9.5% in China, making it a leading player in the country's banking sector.

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Its vast branch network, covering all cities and nearly 99% of counties, has been instrumental in supporting this strong deposit base.

However, the bank's high funding costs are a result of paying agency fees to its parent for deposits absorbed through agency outlets that were owned by its parent, which contribute over 60% of total deposits.

This means that PSBC's overall funding costs are higher than those of its major Chinese peers.

Postal Savings Bank of China is facing a decline in its return on average assets (ROAA), which could weaken over the next 12-24 months due to continued compression of net interest margins (NIMs).

PSBC's net interest margins (NIMs) were down by 19 basis points in 2023, mirroring industry trends.

The bank's asset quality will remain resilient thanks to adequate provisions, with a ratio of provisions to total loans of 2.88% as of end-2023.

PSBC's large client base gives it the potential to develop its wealth management business further, which is expected to sustain its strong fee income over the next 12-24 months.

The bank's fee income is expected to remain higher than its peers, thanks to its large client base.

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Postal Savings Bank of China Co., Ltd. has faced a significant controversy level that has impacted its ESG Risk Rating in the last three years.

The company's Exposure score is Medium, indicating that it is moderately exposed to different material ESG issues.

This exposure is influenced by factors such as its business model, suggesting that the bank's operations and practices may be vulnerable to certain environmental, social, and governance concerns.

Exposure refers to the extent to which a company is exposed to different material ESG issues. Our exposure score takes into consideration subindustry and company-specific factors such as its business model.

A company's exposure score can be influenced by its business model, which can make it more vulnerable to certain ESG issues. This is evident in the case of Postal Savings Bank of China Co., Ltd., which has a Medium exposure score.

Companies with diverse business models may be more exposed to various ESG issues, whereas those with more focused models may have a lower exposure score. This is just one factor that contributes to a company's overall exposure.

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In the world of investing, controversy can be a major red flag. The highest controversy level that has impacted Postal Savings Bank of China Co., Ltd.'s ESG Risk Rating in the last three years is a key factor to consider.

This controversy level is a direct result of the company's involvement in various contentious issues. Controversy Rating is a crucial metric to assess a company's reputation and potential risks.

Postal Savings Bank of China Co., Ltd.'s controversy level has been significantly impacted by various factors, including its ESG (Environmental, Social, and Governance) performance. The company's ESG Risk Rating is a direct measure of its exposure to controversy.

To put this into perspective, the highest controversy level of 7 out of 10 indicates a significant risk to the company's reputation and financial stability. This level of controversy can have a ripple effect on the company's relationships with stakeholders and investors.

The exact metrics used to calculate the controversy level are not publicly disclosed, but it's clear that the company's involvement in contentious issues has had a lasting impact on its reputation.

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Companies like Postal Savings Bank of China Co., Ltd. are exposed to various material ESG issues.

One of the key issues is climate change, which affects their operations and financial performance.

The bank's management of climate-related issues is crucial to its long-term success.

For instance, the bank's exposure to water scarcity is a significant concern, particularly in regions with limited water resources.

The bank's ability to adapt to these challenges will impact its bottom line and reputation.

Companies must prioritize ESG issues to maintain investor trust and avoid financial losses.

The bank's management of ESG issues is a critical aspect of its overall risk management strategy.

Effective ESG management can help the bank to avoid costly controversies and maintain a positive brand image.

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Postal Savings Bank of China has some notable competitors in the market. One of them is Agricultural Bank of China Ltd Class A, listed as 601288.

In terms of management, Postal Savings Bank of China's ESG programs and policies are considered average. This assessment is based on how well the company is managing its relevant ESG issues.

The bank's management score is an essential factor to consider when evaluating its overall performance. It's a key indicator of how effectively the company addresses environmental, social, and governance risks.

Here are some of its main competitors:

In the competitive banking industry, several companies stand out as notable competitors. Agricultural Bank of China Ltd Class A is one such company, listed under the ticker 601288.

China Construction Bank Corp Class A and Bank Of China Ltd Class A are also major competitors, listed as 601939 and 601988 respectively.

These companies are well-established players in the market, and it's worth noting that their presence can impact the financial landscape of the industry.

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Management is a crucial aspect of a company's overall performance, and it's not just about making profits. Management refers to how well a company is managing its relevant ESG issues.

Our management score assesses the robustness of a company's ESG programs, practices, and policies. It's a key indicator of a company's ability to mitigate risks and capitalize on opportunities.

Some companies, like Postal Savings Bank of China Co., Ltd., have an average management score for ESG material risk. This means they're doing okay, but there's room for improvement.

Management is about making informed decisions that balance the needs of the business with the needs of the environment and society. It's not just about meeting regulatory requirements, but about being proactive and responsible.

A company's management practices can have a significant impact on its long-term success and reputation. By prioritizing ESG issues, companies can reduce risks, improve efficiency, and create value for stakeholders.

The IPO of Postal Savings Bank of China was a significant transaction. The deal value was $7,429 million.

Bookrunners played a crucial role in the IPO, with a large team of 26 banks involved, including China International Capital Corp, UBS, and Bank of America Merrill Lynch.

In an IPO, the deal value can be quite substantial, as seen in the example where the deal value was a staggering $7.429 billion.

The bookrunners play a crucial role in the IPO process, and in this particular example, there were 23 bookrunners involved, including China International Capital Corp, UBS, and Bank of America Merrill Lynch.

A bookrunner's main responsibility is to manage the IPO process, ensuring a smooth transition from the initial public offering to the listing on the stock exchange.

The list of bookrunners in this example includes some of the biggest names in the industry, such as Goldman Sachs, Morgan Stanley, and JPMorgan.

In 2016, some of the biggest initial public offerings (IPOs) took place globally.

The top 3 global IPOs of 2016 were led by Postal Savings Bank of China, which raised $7.4 billion in September of that year.

Dong Energy's IPO in June 2016 was a significant event, bringing in $3.0 billion.

China Zheshang Bank's IPO in March 2016 was another notable one, with a raise of $1.9 billion.

Here are the top 3 global IPOs of 2016, listed in order of their size: