Postal Savings Bank of China (PSBC) saw its stock price plummet by 5.11% during intraday trading on Friday, following the release of its 2024 financial results. The significant drop in share value reflects investors' disappointment with the bank's performance, which fell short of market expectations.

According to the report filed with the Hong Kong bourse on Thursday, PSBC's profit attributable to equity holders for 2024 increased by a mere 0.24% to 86.48 billion yuan, up from 86.27 billion yuan in the previous year. Earnings per share (EPS) declined to 0.81 yuan from 0.83 yuan a year ago, missing analysts' estimates of 0.83 yuan. While the bank's operating income rose by 1.81% to 349.13 billion yuan, slightly beating expectations, the sluggish profit growth and EPS decline seem to have overshadowed this positive aspect.

The market's negative reaction to PSBC's results was evident not only in Hong Kong but also in mainland China, where the bank's Shanghai-listed shares declined by nearly 3% in morning trade. Despite the bank proposing a final cash dividend of 0.1139 yuan per share, investors appear to be focusing on the underwhelming growth figures and the bank's struggle to maintain profitability in a challenging economic environment. The sharp 5.11% drop in Hong Kong suggests that market participants are reassessing their outlook for PSBC's future performance and growth prospects.