As of April 1, the annual reports of the six major state-owned banks and major joint-stock banks have been fully disclosed. At the same time, the operation of the major Licai subsidiaries in the past year has also surfaced.
2021 will be the end of the transition period of the new asset management regulations. With the substantial acceleration of net worth transformation, the financial subsidiary has officially moved towards the fast lane of transformation and development. From the perspective of profitability, China Merchants Bank financial management ranks first with a net profit of 3.203 billion yuan; Followed by xingyin wealth management, with a net profit of 2.8 billion yuan in 2021, double that of the previous year.
In addition to the ability to attract money, the scale of financial products has also become a key indicator for financial subsidiaries to compete with each other. At present, most banks have separately disclosed the management scale of financial management subsidiaries, and the statistical caliber is gradually unified. According to the data, three financial management subsidiaries have joined the “2 trillion club”, namely CMB financial management, ICBC financial management and CCB financial management. In addition, the number of financial subsidiaries with financial products exceeding trillion has reached 9.
I. 4 companies with net profit exceeding 2 billion yuan
Compared with 2020, the profitability of financial subsidiaries has increased significantly in 2021. According to the statistics of interface news reporters, there are many financial management subsidiaries with a net profit of more than 2 billion yuan in 2021. Two shares have become leaders, with profitability in the forefront. Among them, the net profit of CMB financial management was 3.203 billion yuan, ranking first; The net profit of “dark horse” xingyin financial management was 2.8 billion yuan, ranking second temporarily. Large state-owned banks have also caught up. Last year, Bank of China financial management and CCB financial management achieved net profits of 2.609 billion yuan and 2.062 billion yuan respectively.
In addition, in 2021, the net profit of financial management sub-systems such as Xinyin financial management, Agricultural Bank of China financial management, Ping An financial management, Everbright financial management, China Post Financial Management and bocom financial management exceeded 1 billion yuan, respectively 1.806 billion yuan, 1.721 billion yuan, 1.616 billion yuan, 1.586 billion yuan, 1.225 billion yuan and 1.155 billion yuan.
“According to the scale, volume and management fee level of large financial subsidiaries, it is expected to achieve such a profit level.” Zhou Yiqin, a senior financial regulatory research expert, told the interface news reporter.
Zhou Yiqin said that the reason is related to the gradual shift of financial products from the parent bank to financial companies. With the expansion of business scale, the business income of financial management companies has also increased. In addition, in 2021, the scale of the whole bank financial management market rose to an all-time high of 29 trillion, and the overall scale of financial management companies has exceeded 17 trillion. Many financial management companies approved in the later stage gradually made efforts in the final stage of the transition period of new asset management regulations, and the volume of products has increased significantly, which objectively helped financial management companies achieve beautiful performance.
In addition to state-owned banks and joint-stock banks, some urban commercial banks and rural commercial banks also have considerable profits. Among them, the net profit of BQD financial management last year was 408 million yuan and that of Chongqing Agricultural financial management was 356 million yuan.
In terms of the scale of financial products, the scale of CMB financial products with the highest profitability also ranked first. According to the financial report, the balance of financial products managed by China Merchants Bank was 2.78 trillion yuan, an increase of 13.47% over the end of the previous year.
In addition, the scale of financial products has entered the $2 trillion mark, as well as two financial subsidiaries, CCB financial management and ICBC financial management. By the end of 2021, the total scale of financial products including CCB’s parent bank and financial sub bank was 2.37 trillion yuan, including 183949 billion yuan of parent bank’s products and 2.19 trillion yuan of CCB’s financial products.
By the end of 2021, the balance of ICBC group financial products was 2.59 trillion yuan, of which the balance of ICBC financial products was 2.02 trillion yuan, an increase of 951731 billion yuan over the end of the previous year, all of which were net worth financial products.
In addition, ABC financial management and BOC financial management are only one step away from the 2 trillion mark. By the end of the reporting period, the financial asset management scale of ABC was 1.82 trillion yuan; The entrusted management scale of BOC financial management exceeded 1.71 trillion yuan, an increase of 23.17% over the end of the previous year.
There are also xingyin financial management, BOCOM financial management, Everbright financial management and Xinyin financial management with an asset management scale of more than trillion yuan. Among them, the scale of xingyin financial products exceeded 1.35 trillion yuan, and the scale of BOCOM financial products exceeded 1.22 trillion yuan, an increase of 129.43% over the end of the previous year. The total scale of Everbright financial management assets is about 1 trillion yuan.
II. Net worth transformation results are released, and three companies start self purchase under the net breaking crisis
It is worth noting that a number of listed banks have disclosed the group’s asset management scale and financial sub asset management scale in their annual reports. Among them, all the products under the financial management subsidiary are net worth products that comply with the new regulations of asset management. So, as of the end of the transition period of the new asset management regulations, which banks have been more thoroughly netted?
The interface news reporter noted that the net worth of several joint-stock banks accounted for more than 90%. Among them, China Merchants Bank Co.Ltd(600036) new products that meet the new regulations of asset management account for 93.53% of the balance of financial products Industrial Bank Co.Ltd(601166) compliance with the new regulations on asset management net worth products amounted to 1.68 trillion yuan, accounting for 94.13% China Everbright Bank Company Limited Co.Ltd(601818) net worth financial products had a balance of 1 trillion yuan, accounting for 93.84% China Citic Bank Corporation Limited(601998) the scale of net worth products that meet the requirements of the new regulations on asset management is 1.27 trillion yuan, accounting for 90%.
In terms of large state-owned banks, from the disclosed data, CCB’s net worth products accounted for the highest proportion, up to 92.25%. Followed by Agricultural Bank Of China Limited(601288) , net worth products accounted for 87.9% Bank Of Communications Co.Ltd(601328) net worth products accounted for 88.47%, followed by Postal Savings Bank Of China Co.Ltd(601658) and the net worth rate of the bank’s wealth management business at the end of the year was 83.87%. In contrast, Industrial And Commercial Bank Of China Limited(601398) net worth rate is slightly lower, and net worth products account for 78%.
Some rural commercial banks and urban commercial banks have achieved 100% net worth. Among them, Bank Of Qingdao Co.Ltd(002948) , Chongqing Rural Commercial Bank Co.Ltd(601077) all said that the net worth rate of financial products reached 100%, and the rectification and transformation work in the transition period such as net worth transformation and stock assets rectification was successfully completed.
With the clearing of breakeven financial management and the basic completion of net worth transformation, financial managers will also face new troubles of growth. Recently, affected by the adjustment of the stock and bond market, financial products have broken the net in a large area. In addition to strengthening investment and education, some financial products have also taken action to purchase products to convey confidence.
In late March, Everbright financial took the lead in launching the first shot and subscribed 500 million yuan. Subsequently, Nanyin financial management also said that the company had invested about 500 million yuan of its own funds for subscription / subscription. China Post Financial also announced that it has applied for the financial products managed by the company with its own funds of about 650 million yuan, and plans to choose an opportunity to apply for the hybrid (Fortune Xinxin Xiangrong and Hongyuan Series) and fixed income + (Hongjin Series) financial products managed by the company.
On the investment side, wealth managers have also adjusted their strategies to deal with the fluctuation of product net value. The relevant person in charge of Everbright wealth management told the interface news reporter that first, Everbright wealth management strengthened market analysis and judgment, timely adjusted the investment strategy, and reduced the fluctuation of product net value by adding deposits to buffer the fluctuation, making rational use of hedging tools, adjusting the portfolio duration, balancing the allocation of multiple assets and dispersing investment risks. Second, carefully adjust the allocation of equity assets, closely track the market, seriously resume the withdrawal, strengthen the grasp of the market band, conduct balanced allocation of the industry, conduct defensive operation on weak targets, and improve the stability of product returns.
The relevant person in charge of BOCOM financial management told the interface news reporter that on the investment side, BOCOM financial management first actively adjusted the bond position, leverage and duration in combination with the specific situation of the product, so as to reduce the portfolio fluctuation. Second, actively allocate non-standard assets and low volatility assets, so as to improve the static rate of return. Third, we should tap some bond varieties and individual bonds that have fallen too far, and actively grasp investment opportunities. Fourth, strengthen investment research and strictly control credit risks.
