The consumer finance vehicle of big state-owned lender Postal Savings Bank of China (PSBC) has just grabbed approval from Guangdong province regulators for a debt issue to shore up its capital levels.
The Guangdong province banking and insurance regulator recently approved the issuance of up to 1.8 billion yuan in Tier 2 capital bonds by PSBC Consumer Finance (中邮消费金融).
The move comes amidst efforts by players in China’s consumer finance sector to expand their low-cost funding channels, as rural migration and the spread of the Internet and digital services to the Chinese countryside increases their market potential.
In 2021 PSBC Consumer Finance saw operating revenues of 5.686 billion yuan, for a year-on-year (YoY) rise of 16.92%. Net profits were 1.229 billion yuan, for a You rise of 205.7%.
As of the end of last year PSBC Consumer Finance had total assets of 44.422 billion yuan for an increase of 30.63% compared to the end of the previous year.