(Yicai Global) March 27 -- China Postal Savings Bank has boosted its gains to exceed CNY50 billion (USD7.4 billion) for the first time as the lender made strides to deepen reforms and control risks.
China Postal Savings Bank's net profit rose nearly 10 percent to CNY52.4 billion last year, the Beijing-headquartered lender said in its annual earnings report that was released yesterday.
The bank will increase its support for privately owned firms, small and micro enterprises, farmers and rural areas to accelerate the transformation of retail business, according to the report. It will also upgrade its technology and build more digital services.
The financial institution's operating income rose 16.2 percent to CNY261.2 billion. Its net interest margin was 2.7 percent, an increase of 27 basis points.
The firm's non-performing loan ratio climbed 0.11 percentage point to 0.86 percent, as the NPL balance rose to CNY36.9 billion by the end of 2018. The ratio was lower than the average of 1.89 percent reported by other commercial banks, according to data from the Banking Regulatory Commission
The banks' provision coverage ratio rose 22 percentage points to reach almost 347 percent, nearly twice the sector's average. The bank's core tier 1 capital adequacy ratio increased to almost 10 from below 9 percent. This was still 1 percentage point less than Chinese commercial banks' average.
China Postal Savings Bank's capital adequacy ratio advanced to 13.7 percent from 12.5 percent. This, however, was 0.5 percentage point less than the sector's average.
Editor: Emmi Laine