[Sponsored Article] On March 30, Postal Savings Bank of China (hereinafter referred to as “PSBC” or “the Bank”, stock code: 601658.SH, 1658.HK) released its 2021 annual report. Against the backdrop of continuous economic recovery last year, PSBC seized the opportunities arising from national strategies such as rural revitalization, peaking carbon emissions and carbon neutrality, common prosperity, etc. Its business grew at a steady pace with sound momentum, making a good start of the 14th Five-year Plan period. The annual report shows that PSBC realized operating income of RMB319,107 million (prepared in accordance with the International Financial Reporting Standards, the same below) for the year, up 11.37% year on year; net profit of RMB76,532 million, up 18.99% year on year; fee and commission income of RMB22,007 million, up 33.42% year on year. As at the end of 2021, its NPL ratio recorded 0.82%, down 0.06 percentage point from the prior year-end, and allowance to NPLs ratio stood at 418.61%, up 10.55 percentage points from the prior year-end. Since its establishment on March 20, 2007, PSBC has gone through 15 years of development, during which it maintained its strategic focus on retail banking, actively embraced innovation and changes, and accelerated its progress, with its current asset scale reaching RMB12.59 trillion. In the future, how will this large retail bank with a cultural heritage of over 100 years and nearly 40,000 outlets make greater progress in technology empowerment, institutional reform, model innovation, etc., chart the path for the transformation of a modern commercial bank, and build up and constantly increase its new strengths? We can find out about its growth path and future direction in its 2021 annual report. Leapfrog development Its asset scale is 5.6 times that 15 years ago when the Bank was founded At the beginning of reform and opening-up, PSBC advocated the spirit of “looking for savings resources from millions of families, conducting publicity by thousands of words, and using every possible means to make contributions” in carrying out the postal savings business. Today, it adheres to the strategic positioning of “serving Sannong customers, urban and rural residents, and SMEs”. Throughout its history, the genes of inclusiveness and prudence are deeply rooted in its blood. Guided by the mission of making financial services accessible to everyone, we create happiness and bring a better life to the people. PSBC has achieved its own high-quality development while supporting national strategies and people’s livelihood and serving economic and social development. Data show that its assets increased from RMB2.23 trillion at the beginning of its establishment to RMB12.59 trillion, total deposits from RMB2.13 trillion to RMB11.35 trillion, loans from zero to RMB6.45 trillion, operating income from RMB39,699 million to RMB319,107 million, net profit from RMB1,024 million to RMB76,532 million, and equity attributable to equity holders of the Bank from RMB22,024 million to RMB794,091 million. The Bank once again obtained the best credit ratings among Chinese banks from the world’s top three rating agencies, and ranked 15th in The Banker’s list of “Top 1000 World Banks”. Zhang Jinliang, Chairman of PSBC, said in his message in the annual report, “We owe the Bank’s solid and rapid growth to the trust of hundreds of millions of customers, and our distinctive competitive edges to all PSBC employees’ perseverance and dedication. ” Looking forward, he said that “we will acquire a deep understanding of the political importance and the people-centered nature of financial work, apply the new development philosophy in full, in the right way and in all fields of endeavor, promote the reform of systems and mechanisms, and keep modernizing our corporate governance system and capability, thus staying ahead and conveying our characteristics in the pursuit of high-quality development.” Liu Jianjun, President of PSBC, said in his message in the annual report that “we make efforts to strengthen major capabilities in six aspects including core business, system support, coordination and integration, technological facilitation, institutional drive and innovation leadership, leverage the human resource advantages of a major bank, incorporate customer portrait, risk warning, intensive operation and customer experience feedback into the service processes, pool resources across the Bank to support customer service each and every time, and provide more targeted and refined service to every customer.” Retail business AUM increased by over RMB1 trillion in the year, and income from personal banking business accounted for nearly seventy percent of operating income AUM is considered a core indicator to measure a bank’s competitiveness in retail banking. Data show that as at the end of 2021, PSBC had 637 million personal customers, and its AUM increased by over RMB1 trillion during the year to reach RMB12.53 trillion, representing a year-on-year increase of 11.40%. As a major retail bank, PSBC has natural advantages in developing retail banking. While other banks have generally realized the importance of retail business and are quickly engaging in the business layout, how has PSBC maintained and consolidated its strengths? We may find the answer in its annual report. Zhang Jinliang said in his message in the annual report that “by creating network, strengthening linkage and expanding business district, we built a ‘scenarios plus’ open bank model. Creating network: As nearly 40,000 offline outlets and online channels complemented each other, we served as a bank close to people’s homes and close at hand. Strengthening linkage: We optimized a classified and multi-tier service system for different types of customers including strategic customers, interbank customers, institutional customers, and micro, small and medium-sized customers, and upgraded professional operation systems, forming a service model covering whole customer journey, all channels and entire chain. In doing so, we boosted the stable circulation of industrial chain and supply chain and optimized our ‘value chain’. Expanding business district: We promoted the digital transformation of online retail business, built offline business model featuring ‘outlets plus business district’, and created an interbank ecosystem. By understanding customers, discovering demands, creating scenarios and establishing ecosystem, we integrated financial products and services into customers’ production and lives.” Thanks to its enduring commitment to retail banking, PSBC’s personal banking business contributed nearly seventy percent of its operating income. Data show that in 2021, the Bank’s income from personal banking business recorded RMB221,883 million, up 11.99% year on year, accounting for 69.53% of the Bank’s operating income, an increase of 0.38 percentage point year on year.