On December 29, more than one year after being approved for preparation, Guangfa financial management, a wholly-owned financial management subsidiary of Guangfa bank, opened its business. This is the first bank financial management subsidiary approved to open this year. So far, among the 26 bank financial management subsidiaries approved to be established, 22 have been opened, and there are still 4 to be approved for opening. In addition, another four joint venture wealth management companies have been approved for establishment, among which BlackRock Jianxin wealth management company has opened.
The bank’s financial management subsidiary is the product of the implementation of the new asset regulations in 2018. Since its first opening in 2019, the banking financial management subsidiary has become an important role in the banking financial management market. Relevant statistics show that by the end of September 2021, the survival scale of wealth management company products has reached 13.69 trillion yuan, and the market share has increased steadily, reaching 48.97%.
the first bank financial management subsidiary opened this year
It took more than a year for Guangyin financial management from its approval to its official opening. The reporter learned from the bank that Guangyin financial management is the seventh joint-stock bank financial management subsidiary approved to be established. It is also the first bank financial management subsidiary settled in Pudong and the parent bank in other places. Its registered capital is 5 billion yuan and its registered place is Shanghai.
It is reported that Guangyin financial management will strive to become the core supplier of wealth management products for China Life Insurance Company Limited(601628) and retail customers of Guangfa. Guangyin financial said it would build a brand product system of “happy financial management”. On the one hand, build a product ecosystem of “insurance like” old-age security products “,” deposit like “interest bearing products + public offering like value-added products; On the other hand, according to the investment preferences of various types of customers, in addition to the three basic functional products, we launched customized products and services, and increased the supply of relevant products in the direction of global asset allocation, high participation structured investment, high-quality non-standard customization and selection of excellent private placement managers.
Guang Yin said that one belt, one road, will be built around the world to actively deploy global assets and steadily enhance cross-border financial capability and internationalization level.
Guangfa bank, the financial parent bank of Guangyin, is one of the only two unlisted joint-stock banks at present. By the end of 2020, the bank’s total assets were 3.03 trillion yuan, an increase of 15.01% over the beginning of the year; The accumulated operating revenue was 80.525 billion yuan, a year-on-year increase of 5.52%; The net profit was 13.812 billion yuan, a year-on-year increase of 9.79%; The non-performing loan ratio was 1.55%, and the provision coverage ratio was 178.32%. In 2020, the bank sold 1005 non breakeven financial products and raised 849.371 billion yuan. However, compared with previous years, the speed of approval and opening of bank financial subsidiaries has slowed down this year.
Judging from the progress of previous fund-raising, generally speaking, the financial subsidiary can be approved to start business about 5-8 months after the fund-raising. However, at present, some bank financial management subsidiaries have been approved for more than one year and have not been approved for operation.
For example, Puyin wealth management under Shanghai Pudong Development Bank Co.Ltd(600000) and Zhejiang bank wealth management under China Zheshang Bank Co.Ltd(601916) were approved to build in August and November 2020 respectively, but have not been approved to start business so far. This year, only one joint venture wealth management company, BlackRock Jianxin wealth management, was approved to open in May. Three months after it was approved to open, BlackRock CCB wealth management issued its first product, with an initial raising amount of more than 2.464 billion yuan, which is the largest public equity wealth management product.
small and medium-sized banks actively run in
According to the requirements of the measures for the administration of financial management subsidiaries of commercial banks, commercial banks shall carry out financial management business through subsidiaries with independent legal person status. The importance of financial subsidiary license is self-evident.
The reporter noted that since this year, a number of small and medium-sized banks have been actively striving for tickets. Since September, Bank Of Beijing Co.Ltd(601169) , Bank Of Xi’An Co.Ltd(600928) , Bank Of Guiyang Co.Ltd(601997) has successively announced that it plans to establish a wholly-owned financial management subsidiary; Among unlisted banks, there are also banks that plan to apply for establishment. For example, in October this year, the official website of Urumqi bank disclosed that the board of directors of the bank agreed to invest no more than 5 billion yuan to establish a financial subsidiary.
For the establishment of financial management subsidiaries, the cbcirc adheres to the principle of “one mature and one approved”.
A number of financial management subsidiaries opened earlier have entered the stage of orderly operation, with the management scale breaking through the trillion mark and the performance improving steadily.
According to the semi annual report of listed banks in 2021, the total net profit of 16 financial subsidiaries in the first half of the year reached 9.906 billion yuan, more than 9.779 billion yuan in the whole year of last year. In particular, the financial management subsidiaries of joint-stock banks performed more prominently. For example, by the end of June this year, the scale of xingyin’s financial management had reached 1.61 trillion yuan, an increase of 9.02% over the end of the previous year, and the net profit had increased greatly from 103 million yuan in the same period last year to 1.983 billion yuan; The scale of CMB’s financial management was 2.64 trillion yuan, still ranking first, an increase of 7.76% over the end of the previous year. In the first half of the year, the net profit was 1.557 billion yuan, a year-on-year increase of 3.80%.
According to the latest report released by Puyi wealth management, with the end of the transition period of new asset management regulations, the financial business field will gradually differentiate in the future. Large commercial banks will give full play to the development advantages of financial management subsidiaries in asset management business and accelerate the implementation of the two wheel drive development strategy of “asset management + wealth management”; Small and medium-sized banks will further turn to consignment business and deeply cultivate the regional market. When issuing net worth products, small and medium-sized banks face multiple difficulties such as their own volume restrictions, investment and research capacity restrictions, asset investment restrictions and so on, resulting in the transformation of a large number of small and medium-sized banks to consignment business and wealth management business.
(Shanghai Securities News)
