Recently, the annual reports of the six major state-owned banks in 2021 have been fully disclosed. The reporter of Securities Daily combed the financial data of the three subsidiaries of the major state-owned banks, including financial management, funds and insurance. It was found that the vast majority of the above three subsidiaries achieved stable growth in important indicators such as asset scale and net profit in 2021, and their contribution to the overall operating efficiency of the group continued to improve.
In particular, the financial management subsidiaries of six state-owned banks have not only achieved comprehensive success, but also greatly improved the degree of product net worth, which has become a bright star in the comprehensive management platform of state-owned banks.
“Residents’ demand for financial products and services is all-round. Therefore, the bank financial management business, funds and insurance products of large state-owned banks are all options for their asset allocation.” In an interview with the Securities Daily, Zhou Jin, the management consulting partner of PWC China’s financial industry, said that from the perspective of customer operation, the bank has a multi license group collaboration model, which can reduce the customer acquisition cost and marketing cost through cross selling, and better provide customers with all-round products and comprehensive services, so as to improve customer stickiness and loyalty and improve the long-term business performance of the bank.
wealth management subsidiary:
BOC financial net profit leads
Among the many financial licenses owned by large state-owned banks, the financial management subsidiary is undoubtedly the “latest” and the brightest at the same time.
Following the opening of CCB financial management, the first bank financial management subsidiary, in June 2019, the financial management subsidiaries of other large state-owned banks also opened in succession that year. In the progress of setting up financial management subsidiaries, large state-owned banks are undoubtedly in the forefront of all kinds of commercial banks.
In 2021, the asset scale of financial management subsidiaries of large state-owned banks increased steadily by the end of last year, the total assets of the six financial management subsidiaries had exceeded 10 billion yuan, all of which had increased compared with the end of 2020. Among them, the total assets of ICBC financial management reached 18.791 billion yuan by the end of 2021, which is the largest of all financial management subsidiaries. The total financial assets of BOC increased by 30.40% over the end of 2020, leading other financial subsidiaries
in 2021, the net profits of all six financial management subsidiaries achieved positive growth. Except ICBC financial management, the net profits of other companies exceeded 1 billion yuan what is more gratifying is that the profits of some financial management subsidiaries showed a blowout growth last year. The net profits of three companies, including CCB wealth management, BOC wealth management and ICBC wealth management, doubled. Among them, BOC wealth management and CCB wealth management realized net profits of 2.609 billion yuan and 2.062 billion yuan last year, ranking first and second respectively. The net profit of CCB wealth management and BOC wealth management in 2020 was only 335 million yuan and 455 million yuan, with a year-on-year increase of 515.52% and 473.41%
At the same time, the scale of assets under management of the bank’s financial management subsidiary has risen. as of the end of last year, the scale of financial products of CCB financial management and ICBC financial management has exceeded the 2 trillion yuan mark, an increase of 213.97% and 88.94% respectively over the end of 2020
The reporter noted that under the regulatory pattern determined by the new regulations on asset management and financial management, the proportion of net worth products issued by the financial management subsidiaries of state-owned banks that have been in operation for more than two years continued to accelerate the net worth transformation of products in 2021, and the proportion of net worth products increased significantly.
data show that by the end of 2021, all financial products of ICBC financial management, CCB financial management and ABC financial management have been net worth products that meet the requirements of the new regulations in addition, the proportion of BOCOM financial net worth products in financial products was 88.47%, an increase of 27 percentage points over the end of 2020. Among the financial subsidiaries of large state-owned banks, China Post Financial, which opened the latest, also had a net worth rate of financial products of 83.87% by the end of last year.
fund management:
ICBC Credit Suisse stands out
As an important force that can not be ignored in the fund industry, banking fund companies also maintained an overall stable growth trend in 2021. Data show that ICBC’s ICBC Credit Suisse fund company is significantly ahead of other fund companies of large state-owned banks in terms of two important financial indicators: asset management scale and net profit.
by the end of 2021, the total assets under management of ICBC Credit Suisse had reached 1.72 trillion yuan, and the annual net profit was 2.794 billion yuan. CCB fund followed closely. By the end of last year, its total assets under management had reached 1.36 trillion yuan
In terms of net profit, except for Postal Savings Bank Of China Co.Ltd(601658) , which has no fund company under it, the net profit of the fund financial management subsidiaries of the other five major banks showed a trend of “four increases and one decrease”.
ICBC Credit Suisse, CCB fund, ABC Huili fund and bocom Schroeder fund all achieved year-on-year growth in net profit last year , of which, ABC Huili fund achieved a net profit of 648 million yuan, a year-on-year increase of 51.76%, maintaining the first growth rate and BOC fund achieved a net profit of 1.026 billion yuan in 2021, a year-on-year decrease of 2.66%, which is also the only fund subsidiary with a decline
“Due to the development of third-party consignment and Internet platform, the channel ability advantage of banking funds has weakened in recent years, but on the whole, they are still in a strong position, especially the fund companies with the background of large state-owned banks still have strong competitiveness.” Kuang Yuqing, the founder of lens research, told the reporter of Securities Daily that whether its channel capability advantages can be brought into full play depends on the management performance of the fund company, especially those equity products with high management fees and better reflecting its core competence.
“Public funds that rely heavily on monetary and fixed income products may face some pressure on their performance in 2022. The main reason is that the expected monetary policy this year should continue to be moderately loose, the overall interest rate level of the market will remain low, which will pose a great challenge to the income of monetary and fixed income products, and there are variables whether the scale can be maintained or whether growth can be achieved.” Kuang Yuqing expected.
insurance business:
CCB life insurance and ICBC AXA are highly competitive
In addition to Postal Savings Bank Of China Co.Ltd(601658) , the other five major banks have life insurance subsidiaries, of which BOC owns two life insurance companies, BOC life and BOC Samsung life.
In the competition for the top position in asset scale, CCB life and ICBC AXA had fierce competition last year. By the end of 2021, the asset scale of the above two banking insurance companies was very close, with RMB 271482 billion and RMB 258134 billion respectively. Not only was the asset scale far ahead of other companies, but also the growth rate was more than 20%.
in 2021, ICBC AXA realized a total net profit of 1.607 billion yuan, ranking first among banking insurance companies. The net profit of ABC life increased by 57.30% year-on-year, leading the growth rate. Bocom life achieved a net profit of 910 million yuan last year, a year-on-year decrease of 12.07%. It is also the only banking insurance company with declining performance last year
“The overall performance of banking insurance companies in 2021 is good, mainly due to the strong customer resources and channel advantages of their parent bank, the value business model of banking channels and the transformation of regular payment products, as well as the innovation and application of digital means.” Zhou Jin thinks.
