At the mid-year 2026 results briefing held on August 28, Postal Savings Bank Of China Co.,Ltd. Vice President and Chief Risk Officer Yao Hong addressed the current state of the bank's asset quality. She noted that the retail credit asset quality across the banking industry has been under pressure in recent years. Given that PSBC's retail business accounts for a relatively high proportion of its portfolio compared to industry peers, the bank is experiencing considerable structural downward pressure on asset quality due to the broader economic environment.
Discussing the outlook for full-year asset quality, Yao Hong explained that on the corporate lending front, the bank will continue to strengthen its industry research and expand its list of qualified credit clients. The institution is deepening the integrated implementation of its "three-policy alignment" strategy, which synchronizes credit policy, marketing tactics, and credit admission standards. By leveraging advanced risk control and approval technologies, the bank aims to improve the conversion rate of its qualified client database and continuously optimize its credit structure. Consequently, the bank anticipates that corporate loan asset quality will maintain a relatively strong level in the second half of the year.
Regarding retail credit, Yao Hong stated that the bank will build on its previous efforts with sustained momentum. First, it will tighten admission standards further, increasing the proportion of lending to high-quality clients to ensure the asset quality of new loans. Second, it will strictly implement regulatory relief policies, providing assistance to customers who are experiencing temporary operational difficulties but possess sound fundamentals and a strong willingness to repay, in accordance with regulations. Third, the bank will coordinate the use of various disposal resources to intensify the collection and disposal of non-performing loans. Fourth, it will act on regulatory directives aimed at combating black and gray industries within the financial sector, launching a comprehensive special rectification campaign to foster a "sunshine credit" culture at PSBC and enhance the compliance capabilities of credit personnel.
Yao Hong emphasized that, overall, the bank predicts that the pace of risk exposure across the institution will continue to moderate in the second half of the year, with asset quality expected to remain stable.
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