Dongfang Securities: Maintains "Buy" rating on PSBC, performance growth continues to improve

According to the research report from Dongfang Securities, as of Q3 2025, the revenue, PPOP, and net profit attributable to the parent company of Postal Savings Bank of China (PSBC) grew at rates of 1.8%, 8.2%, and 1.0%, respectively, compared to +0.3pct, -6.5pct, and +0.1pct in H1 2025. Breaking it down, the growth rate of net interest income increased by 0.6pct to -2.1% compared to H1 2025; fee income increased by 11.5% year-on-year, with a quarter-on-quarter growth rate decrease of 0.1pct. The double-digit growth in fee income is driven by the combined efforts of personal, corporate, and capital market asset management businesses. Other non-interest income grew by 2.4pct quarter-on-quarter to 27.5%, which may be influenced by a certain base effect. However, considering the significant correction in the bond market in Q3, the bank speculates that there is a certain level of TPL stop-loss and OCI realization efforts. Due to the new round of agency fee rate adjustments initiated by PSBC in Q3 2024, the high base effect of management expenses has also weakened accordingly, leading to a noticeable decline in the year-on-year growth rate of PPOP in Q3 2025, while the significant reduction in credit costs ultimately supported the steady growth of net profit attributable to the parent company. Based on the average valuation of comparable companies, a PB of 0.80 times for 2025 is given, corresponding to a reasonable value of 6.69 yuan per share, maintaining a "Buy" rating