Author: Wang Li

Produced by: Global Financial Theory

Postal Savings Bank was recently punished for violating the rules of insurance agency.

Recently, the information disclosure form of administrative punishment issued by Inner Mongolia Banking Insurance Bureau showed that Tumote Zuoqi Sub-branch of Postal Savings Bank had illegal acts of deceiving policyholders and was fined 5, yuan.

There have been repeated penalties for agency business, or it is also related to the fact that the bank has been vigorously promoting agency business. In the first half of this year, the agency fee and commission income of the bank increased by nearly 6% year-on-year.

Although it has been classified as a big state-owned bank, the Postal Savings Bank, which wants to be completely independent and difficult to leave China Post, still has a long way to go.

in the first half of the year, the profitability of the Postal Savings Bank became weaker.

in the first half of this year, the bank's operating income only increased by 3.35% year-on-year, but its operating expenses increased by 9.7% year-on-year, and finally its net profit returned to its mother decreased by 9.96% year-on-year.

while the profit declined, many profitability indicators also declined, among which the average return on total assets decreased by .13 percentage points year-on-year, the weighted average return on equity decreased by 3.73 percentage points year-on-year, the weighted average return on equity decreased by 3.59 percentage points year-on-year, the net interest rate decreased by .13 percentage points year-on-year, and the net interest margin also narrowed by .15 percentage points year-on-year.

compared with the same industry, the profitability of the Postal Savings Bank is weak, one of the most important manifestations is that the cost-income ratio is too high. In the first half of this year, the cost-income ratio of the Postal Savings Bank was 51.76%, which was almost at the highest level among listed banks, indicating that the bank's operating efficiency was low.

Global Finance notes that the proportion of net fee and commission income of the Postal Savings Bank in its operating income has gradually increased in recent years, with the indicators of 5.81%, 6.6% and 6.65% in the first half of 218, 219 and 22 respectively. In the first half of this year, the bank's net fee and commission income was 9.728 billion yuan, an increase of 389 million yuan or 4.17% over the same period of last year. Among them, the fee and commission income increased by 1.12 billion yuan or 6.71% compared with the same period of last year; Fees and commissions increased by 731 million yuan or 9.93% compared with the same period of last year.

On the surface, the intermediary business ability of Postal Savings Bank is improving, but through in-depth analysis, it is found that the intermediary business structure of the Bank is quite distinctive. Specifically, the fee income of bank cards, POS and wealth management business of Postal Savings Bank decreased in the first half of the year compared with the same period of last year, and the agency business increased the most, with a year-on-year increase of 59.13%, which was the main force to boost the fee and commission income. The bank explained that it was mainly because the Group increased the sales of agency insurance, agency funds and precious metals, vigorously promoted the development of bond underwriting business, and the agency business income increased rapidly.

In fact, the agency business ability of Postal Savings Bank can't be separated from the numerous outlets of China Post, which are all over the country. For employees of Postal Savings Bank and postal outlets, the task of consignment insurance and fund pressure is very heavy, and there are endless violations of consignment insurance, and they often receive regulatory fines for illegal consignment.

From another perspective, the Postal Savings Bank also needs to give tangible rewards for the efforts of postal employees, that is, it needs to pay commissions that make postal employees relatively satisfied. It can be seen that in the first half of the year, while the agency business fee and commission income increased substantially, its fee and commission expenditure also increased greatly, and the increase even exceeded the increase of fee and commission income. In the first half of the year, the postal savings bank fee and commission expenditure was 8.92 billion yuan, an increase of 731 million yuan over the same period of last year, an increase of 9.93%. The bank explained that it was mainly due to the increase in the scale of financial assets sold by postal groups as agents, which led to the increase in commission expenditure.

from the operating income of regional branches, the highest operating income of the bank is in the central and western regions, and the revenue of the head office region has decreased year-on-year, and its proportion in revenue has also dropped from 18.85% to 13.13%.

in December last year, the Postal Savings Bank listed on the A-share market, and its capital was replenished. However, its core tier-one capital adequacy ratio decreased by .73 percentage points in the first half of the year compared with the end of last year, while its tier-one capital adequacy ratio and capital adequacy ratio increased, which should be related to the issuance of perpetual bonds.

Despite the bad first half of the year in Shuang Sheng, by the end of the reporting period, the balance of non-performing loans was 48.531 billion yuan, up 5.687 billion yuan from the end of last year, and the non-performing loan ratio was .89%, up .3 percentage point from the end of last year. However, on the whole, among listed banks, the asset quality of Postal Savings Bank is not bad, and its provision coverage ratio at the end of the reporting period was 4.12%, an increase of 1.67 percentage points over the end of last year.

however, its single-customer loan ratio has exceeded the standard all the year round. In 218, 219 and the first half of 22, its largest single-customer loan ratio was 29.78%, 27.19% and 23.49% respectively, far exceeding the regulatory standard of 1%. Global Finance notes that the largest loan industry of Postal Savings Bank in the first half of the year was transportation, warehousing and postal services. At the end of last year, this industry was also the largest loan industry. Among the top ten single borrowers, seven were transportation, warehousing and postal services.

It is worth noting that the increase in the balance of non-performing loans of the Postal Savings Bank mainly comes from the transportation, warehousing and postal industries. At the end of the first half of the year, the balance of non-performing loans of the transportation, warehousing and postal industries was 7.133 billion yuan, an increase of 7.15 billion yuan compared with the end of last year. The bank explained that the main reason for the increase was that the epidemic had brought great impact to customers in the transportation industry.

How much of the loans for transportation, warehousing and postal services were invested in China Post, a related party, was not disclosed in the bank's semi-annual report. However, the contradiction that the Postal Savings Bank wants to be completely independent and cannot leave the postal system still exists.

Up to now, the business of the Postal Savings Bank is still lame, and the loan structure is quite different from the current mainstream loan structure of the banking industry.

at the end of the first half of the year, the balance of corporate loans of Postal Savings Bank was 1.85 trillion yuan, and personal loans far exceeded corporate loans, reaching 2.86 trillion yuan. The interest income of corporate loans was 38.44 billion yuan, up by 8.25% compared with the same period of last year, and the interest income of personal loans was 77.214 billion yuan, up by 12.275 billion yuan, up by 18.9%.

The deposit structure is similar. The ability of the Postal Savings Bank to draw deposits is the envy of domestic banks. At the end of the first half of the year, the balance of corporate deposits was 1.17 trillion, and personal deposits were as high as 8.39 trillion, and the average interest rates of both were less than 2%. But obviously, the Postal Savings Bank still relies on the powerful China postal outlets, so the proportion of savings deposits will be much higher than that of corporate deposits.

of course, for this reason, the Postal Savings Bank has to pay a considerable savings agency fee. At the end of the first half of the year, the bank's savings agency fee and other 4.691 billion yuan, an increase of 2.869 billion yuan or 7.59% over the same period of last year, and it is also the largest expenditure in business management fees, accounting for 53.71%.

Postal Savings Bank also pays more attention to personal banking, while corporate banking is slightly underestimated, and the number of employees is also slightly different. Apart from management, the lowest proportion of employees is fund business, accounting for less than 1%, followed by corporate banking, accounting for 7.81%, and the highest proportion is personal banking, accounting for 4.7%.