As of April 12, a total of 14 listed banks had disclosed their private banking business in 2021. On the whole, the total financial assets (AUM) of private banking customers of these 14 banks exceeded 16 trillion yuan, the average household assets were about 13.21 million yuan, and the growth rate of many banks reached more than 20%.
Many banks said that family trust will gradually establish a family wealth management service ecosystem as the focus of stimulating the growth of private banking business.
household average assets of about 13.21 million yuan
As of April 12, the data show that 22 listed banks have disclosed the annual financial report of 2021, of which 14 banks have disclosed the development of private banking business in 2021 in detail.
Overall, by the end of 2021, the number of private banking customers of these 14 banks had reached 1236300, the total financial assets (AUM) of customers exceeded 16 trillion yuan, and the average household assets were about 13.21 million yuan.
In terms of growth, 12 banks achieved double-digit growth in the number of customers, including Agricultural Bank Of China Limited(601288) , China Merchants Bank Co.Ltd(600036) , Ping An Bank Co.Ltd(000001) and other growth rates of more than 20%. It is worth noting that Bank Of Ningbo Co.Ltd(002142) made great efforts to develop private banking business in 2021, and the number of private banking customers soared by 70% Industrial And Commercial Bank Of China Limited(601398) has the largest number of customers, nearly 200000, in a state of high and steady growth.
In terms of total financial assets of customers, China Merchants Bank Co.Ltd(600036) still took the lead, reaching 3.39 trillion yuan, and maintained a high-speed growth trend, with a year-on-year increase of 22.32%. In addition, the asset scale of Bank Of Qingdao Co.Ltd(002948) , Bank Of Ningbo Co.Ltd(002142) private banks developed rapidly, with year-on-year growth rates of 31.95% and 53% respectively.
The development of private banking business has also driven the growth of the scale of bank retail business and the income of handling fees and commissions.
Bank Of China Limited(601988) said that in 2021, the scale of fof, single entrustment and other private bank exclusive configuration products increased by 246.50% compared with the end of the previous year. At the same time, private banking business has driven the development of some overseas businesses of BOC, Bank Of China Limited(601988) relevant people told reporters: “we vigorously promote the construction of private banking platform in Asia Pacific, establish an integrated service mechanism of public-private linkage, domestic and foreign linkage and commercial investment bank linkage, and form a multi wheel driven private banking service system of ‘private bank + investment bank + Commercial Bank‘.”
In addition, Ping An Bank Co.Ltd(000001) said that in 2021 Ping An Bank Co.Ltd(000001) net fee and commission income reached 33.062 billion yuan, an increase of 11.5% year-on-year. This is due to the increase in personal agency fund and insurance fee income due to the active promotion of private business development.
Bank Of Qingdao Co.Ltd(002948) establish a multi-level product system to serve private customers. By the end of 2021, the bank had achieved wealth management fee and commission income of 303 million yuan, an increase of 46.38%, of which 167 million yuan was from the sales of agency trust products.
family trust leveraging private development
Many banks said in their annual reports that they would take family trust as the focus of stimulating the growth of private banking business and establish a family wealth management service ecosystem.
according to the China Construction Bank Corporation(601939) annual report, by the end of 2021, the asset management scale of Family Trust consulting business had reached 68.510 billion yuan Bank Of China Limited(601988) focused on the key customer groups of entrepreneurs. The number of family trust customers increased by 82% compared with the end of the previous year. At the same time, services such as insurance trust and charitable trust were improved.
In addition to state-owned banks, joint-stock banks also actively participate Ping An Bank Co.Ltd(000001) in the family trust business, we accelerated product upgrading and promoted business innovation. The newly established scale of Ping An Bank Co.Ltd(000001) family trust and insurance fund trust reached 38.017 billion yuan, an increase of 88.6% year-on-year.
China Merchants Bank Co.Ltd(600036) improve the digital service capability of private banking business, shorten the approval cycle of family trust by 92%, take only 3 working days at the fastest, and online orders account for 89%.
Industry insiders said that in recent years, the scale of China’s affluent population has continued to grow. While the scale of wealth is expanding, the demand for financial investment is also releasing. Recently, CCB trust released the report on the sustainable development of Chinese family wealth (20192021) for the first time: “the rich people have 94% enthusiasm for wealth management, which is reflected in more positive investment awareness and further improvement of confidence index.”
According to the relevant data of China Xindeng, by the end of 2021, the stock scale of family trust had reached 349481 billion yuan; In January 2022, the scale of family trust increased by 12.899 billion yuan, an increase of 33.54% over the previous month, reaching a new high in recent one year.
However, it is worth noting that the lack of risk control ability is the biggest challenge facing family wealth management. According to the survey data, 38% of the wealthy believe that their risk control ability is still the biggest difficulty, up 8 percentage points from 2018. In addition, the plight of wealth management of wealthy families also includes the difficulty in finding financial products that meet their needs (income expectations), and it is difficult to choose professional asset management institutions suitable for them.
In this regard, insiders pointed out that this is an era of wealth management specialization and the awakening of the use of trust tools. Trust companies should make better use of the service function of trust, more accurately design solution trust that meets the needs of specific customer groups, meet the demands of family property inheritance and distribution and asset management, and finally make the trust system benefit more people in needp align=”center”>
