With the disclosure of the 2021 annual report of A-share listed banks, the performance of the bank’s financial management subsidiary has gradually emerged.
On the evening of March 29, China Construction Bank Corporation(601939) and Bank Of China Limited(601988) released the annual report of 2021, and the performance of its financial subsidiaries CCB financial management and BOC financial management were also disclosed. So far, nine bank financial management subsidiaries have disclosed their performance last year, and all have achieved profits, with a total net profit of 17.251 billion yuan.
Further combing, it is found that among the 9 bank financial subsidiaries that have announced their performance, the balance of financial products managed by 7 has exceeded the trillion yuan mark. At the same time of scale growth, the net worth transformation of financial products of listed banks has been accelerated, and the proportion of net worth financial products has been increasing.
CMB’s net profit of wealth management exceeded 3.2 billion yuan
According to the annual report, in 2021, CCB financial management and BOC financial management realized net profits of 2.062 billion yuan and 2.609 billion yuan respectively.
Up to now, including CCB financial management and BOC financial management, 9 bank financial management subsidiaries have disclosed their performance. According to the reporter’s statistics, eight bank financial management subsidiaries made a net profit of more than 1 billion yuan last year. Among them, CMB’s financial management profitability is the strongest, with a net profit of 3.203 billion yuan; BOC wealth management and CCB wealth management ranked second and third, with net profits of 2.609 billion yuan and 2.062 billion yuan respectively.
It is noteworthy that although some bank financial subsidiaries opened for a short time, they still handed over bright transcripts. The net profits of Xinyin financial management and Ping An financial management opened after July 2020 were 1.806 billion yuan and 1.616 billion yuan respectively last year. The net profit of Qingyin financial management opened in November 2020 was 408 million yuan.
In terms of asset scale, among the nine bank financial management subsidiaries, CCB financial management has the largest total asset scale, which was 18.53 billion yuan by the end of last year. BOC financial management and China Merchants Bank financial management followed, with total assets of 14.429 billion yuan and 12.097 billion yuan respectively, and total assets of BOCOM financial management of 10.206 billion yuan. The assets of other financial management subsidiaries are relatively small, all below 10 billion yuan.
Dong ximiao, chief researcher of Zhaolian finance, told reporters that there are three main reasons for the good profitability of the financial management subsidiary: first, the bank financial management market maintained a rapid growth last year, with a scale of 29 trillion yuan, which laid a solid foundation for the profit growth of the bank financial management subsidiary; Secondly, last year, the bank’s financial products created nearly 1 trillion yuan of income for investors, which not only created income for customers, but also promoted the growth of the financial subsidiary’s own profits; Moreover, major banks transferred their financial management business to their financial management subsidiaries, which promoted the improvement of profitability.
bank asset management business transformation and upgrading has achieved remarkable results
The annual report of Bank Of China Limited(601988) financial management market (2021) released by the banking financial management registration and custody center shows that the Bank Of China Limited(601988) financial management market presents six characteristics in 2021: first, the scale of financial management market is growing steadily; Second, the market development pattern is gradually optimized; Third, the number of investors increased rapidly; Fourth, the ability of service entities has been steadily improved; Fifth, the task of stock rectification has been basically completed; Sixth, the supervision efficiency of financial management business has been significantly improved.
2021 is the closing year of the transition period of the new asset management regulations. The market share of financial management subsidiaries has increased steadily and has become the absolute main body of the financial management market. The product layout and promotion of financial subsidiaries last year can also be seen from the 2021 annual report of listed banks.
From the perspective of the scale of assets under management, 7 of the 9 financial subsidiaries that have announced their performance have managed financial products with a balance of more than trillion yuan. While the scale increased, the rectification and transformation of bank financial management was basically completed, and the process of product net worth was significantly accelerated.
according to the annual report of China Merchants Bank Co.Ltd(600036) 2021, the balance of financial products managed by China Merchants Bank was 2.78 trillion yuan, ranking first, an increase of 13.47% over the end of the previous year. In terms of promoting business transformation, as of the end of last year’s report period, the balance of new products was 2.6 trillion yuan, an increase of 56.63% over the end of the previous year, accounting for 93.53% of the balance of financial products, an increase of 25.77 percentage points over the end of the previous year. The remaining old products were used to undertake case assets approved by regulators.
CCB financial management and BOC financial management followed with financial balance of 2.19 trillion yuan and 1.71 trillion yuan respectively Bank Of China Limited(601988) in the 2021 annual report, it was said that at the end of last year, the entrusted management scale of BOC financial management exceeded 1.71 trillion yuan, an increase of 23.17% over the end of last year. The bank actively promoted the rectification of stock financing in strict accordance with the new regulations on asset management and other regulatory requirements. By the end of 2021, the bank had completed the rectification of stock financing on schedule.
The reporter noted that under the background of continuously promoting the net worth transformation of financial products, the bank has also increased the release of new products and the innovative layout of financial products.
according to the 19982021 annual report, Xinyin financial management supports the development of real economy and the wealth management needs of various customer groups, actively cultivates star products with distinctive characteristics, and speeds up the improvement of equity asset investment and research capacity; Continue to innovate and explore, and vigorously develop diversified products and investment advisory services. Actively explore new products, new businesses and new models in the field of bank asset management.
Yang Haiping, a researcher at the Institute of securities and futures of the Central University of Finance and economics and general manager of the research and Development Department of the Bank of Inner Mongolia, told reporters that last year was the last year of the transition period of the new asset management regulations. In the process of completing relevant rectification, the financial management subsidiary actively expanded its business and optimized its management. From the perspective of banks that have disclosed the annual report of 2021, the financial management subsidiary has outstanding performance in terms of asset management scale, product type, revenue, profit and so on. The reasons are as follows: first, the reputation and influence of bank financial management, the advantages of sales channels of the parent bank and the strategic synergy between the parent bank and its subsidiaries have played a role; Second, after the establishment of the financial management subsidiary, the management mechanism was further rationalized and the productivity was liberated to a certain extent.
In Dong ximiao’s view, in 2022, the bank financial management market ushered in the era of new regulations on post asset management, and the development space and potential are still very huge. It is expected that the scale of the financial market will exceed 30 trillion yuan this year, and investors will exceed 100 million. Next, the regulatory authorities should strengthen and improve the supervision of financial management business, financial management companies should improve their professional and characteristic development ability, small and medium-sized banks should accelerate the development of financial product consignment business, and all parties should make concerted efforts to jointly promote the efficient and flexible financial management market to serve the real economy, so as to better meet the needs of investors to balance risks and benefits.
Yang Haiping said that in 2022, on the basis of focusing on fixed income products, the product layout of financial subsidiaries will continue to promote the characteristics and branding of products and the diversification of investment assets. The pilot of pension financial products, the innovation of ESG themed financial products and other characteristic themed products deserve attention. We should expand the scope of investment assets in hybrid products or through fof products, build a higher performance benchmark by lengthening the term, and improve investment efficiency by using financial technology. All these measures are worth looking forward to. After the net worth transformation of the financial subsidiary is fully completed, it is also an inevitable requirement to strengthen the net worth management, strengthen the communication management of the whole process of customer investment, and strengthen the refinement of operation management.
