UBS: Postal Savings Bank of China rated as "neutral", with a target price of HK$4.5

UBS released a research report stating that the after-tax net profit of Postal Savings Bank of China (01658) in the first quarter of the 2025 fiscal year decreased by 2.6% year-on-year, lagging behind the four major banks, mainly due to a significant rebound in provision expenses; pre-provision operating profit increased by 6.2% year-on-year, roughly in line with UBS's forecast. UBS estimates that the credit cost of Postal Savings Bank in the first quarter may rise to 47 basis points. UBS expects that the market's reaction to the first quarter performance of Postal Savings Bank will be neutral, setting its H-share target price at HK$4.5 and giving it a "neutral" rating.