PSBC released its 2018 annual report on March 26. Adhering to the strategic positioning of retail services, putting into practice the new development philosophy and the requirements for high-quality development, and taking “serving the real economy” as its major task, PSBC saw excellent performance in 2018. According to the annual report, PSBC's operating income in 2018 increased by 16.18%, with a year-on-year increase of the net interest margin by 27 BP, while the cost-to-income ratio decreased by 7.04%, the non-performing loan ratio was 0.86%.
Continuous improvement has been made in the operating efficiency of PSBC, with its profitability registering a steady growth. In 2018, the operating income of the Bank reached 261.245 billion yuan (about $38.9 billion) and the net profit broke 50 billion yuan (about $7.45 billion) mark for the first time. The total assets amounted to 9.52 trillion yuan (about $1.42 trillion), and the total liabilities exceeded 9 trillion yuan (about $1.34 trillion), of which the total deposits was 8.63 trillion yuan (about $1.29 trillion), and the total loans exceeded 4 trillion yuan (about $595.68 billion) mark.
Remarkable achievements have been made in serving the real economy, and its business advantages have been continuously consolidated. As of the end of 2018, the total personal loans exceeded 2 trillion yuan (about $ 297.84 billion) for the first time, the balance of agriculture-related loans being 1.16 trillion yuan (about $172.73 billion). Over 1.457 million small and micro-sized enterprises received loans from PSBC. The balance of loans granted specifically for targeted poverty alleviation increased by 32.294 billion yuan (about $4.81billion) over the prior year-end, and the average amount of micro loans granted was 78,100 yuan (about $11629) per transaction, which really showcased PSBC’s policy of supporting “San Nong” (agriculture, rural areas, and farmers) and the small businesses.
Notable enhancement has been made in risk control capability, the asset quality remaining sound. The provision coverage ratio of PSBC reached 346.80%, and the non-performing loan ratio was only 0.86%, less than half of the industry average. Meanwhile, with the supplement of internal capital, the capital adequacy ratio of PSBC rose by 1.25 percentage points to 13.76%, its ability to withstand risks being further reinforced.