Recently, rong360 Digital Technology Research Institute released the report on bank structured deposits in March 2021. The report shows that the scale and yield of bank structured deposits decreased in March.
Since the beginning of this year, although structural deposits have experienced a rise in January, bank structural deposits have returned to the downward trend. According to the data released by the people's Bank of China, as of the end of February 2022, the structural deposit balance of Chinese funded national banks was 5882423 billion yuan, a month on month decrease of 1.57% and a year-on-year decrease of 15.92%.
Liu Yinping, an analyst at rong360 Digital Technology Research Institute, told the Securities Daily that since January was the peak period for collecting deposits, the scale of structured deposits rebounded slightly that month, but on the whole, the overall scale of structured deposits is still being compressed.
The reporter of securities daily visited a number of banks in Beijing and found that the scale and yield of structured deposits of state-owned banks decreased significantly. Among them, the average expected maximum yield of structured deposits of some banks was 1.93%, which continued to be the bottom. Although the average expected rate of return of structured deposits in joint-stock banks is higher than that of state-owned banks, there is more room for income decline. Compared with Chinese funded banks, the expected rate of return of structured deposits in foreign-funded banks is higher, with an average expected maximum rate of return of 5.63%, but the rate of return fluctuates greatly.
structural deposit scale and yield decreased
In recent years, all kinds of banks have been reducing the scale of structured deposits. In terms of bank types, the decline in the scale of structured deposits of large banks in 2021 was greater than that of small and medium-sized banks, especially the decline in the scale of individual structured deposits of large banks.
However, at the end of January this year, the balance of structured deposits rebounded to 5.98 trillion yuan, an increase of 17.72% month on month. Following the rebound in January, the scale of structured deposits returned to the downward trend in February. From the perspective of institutional entities, the proportion of structured deposits in large banks rebounded slightly in the first two months of this year. From the perspective of investor types, the scale of individual structured deposits increased and the scale of unit structured deposits decreased. Among them, the scale of individual structured deposits of large banks and small and medium-sized banks increased by 2.52% and 0.78% month on month respectively, and the scale of unit structured deposits of large banks and small and medium-sized banks decreased by 1.66% and 3.81% month on month respectively.
In this regard, Liu Yinping told the reporter of Securities Daily that the scale of structured deposits rebounded slightly in January, mainly because it was the peak period of collecting deposits, but on the whole, the overall scale of structured deposits is still being compressed.
While reducing the scale, the yield of structured deposits also decreased significantly. According to the incomplete statistics of rong360 Digital Technology Research Institute, the average maturity of RMB structured deposits issued by banks in March 2022 was 147 days, 13 days shorter than that of the previous month; The average expected intermediate rate of return was 2.99%, down 9 BP month on month; The average expected maximum yield was 3.59%, down 3bp month on month.
From the perspective of different types of banks, the expected rate of return of structured deposits of Chinese funded banks decreased, while the expected rate of return of structured deposits of foreign-funded banks was higher. In March, the average maturity of structured deposits of state-owned banks was 89 days, and the average expected maximum yield was 3.38%, down 4bp month on month; The average maturity of joint-stock banks is 175 days, and the average expected maximum yield is 3.59%, down 5bp month on month; The average term of urban commercial banks is 122 days, and the average expected maximum yield is 3.56%, down 3bp month on month; The average maturity of foreign banks is 412 days, and the average expected maximum yield is 5.63%, up 37bp month on month.
In this regard, Liu Yinping told the reporter of Securities Daily that from the perspective of linked targets, the proportion of structured deposits of linked stocks and funds issued by foreign banks is high, and the expected maximum rate of return of such products is high, but there is great uncertainty in the rate of return to maturity.
experts say there is still room for decline in the scale and income of structured deposits
According to the information of structured deposit products provided by many banks, there are great differences in the income structure of structured deposits of different banks. From the perspective of specific banks, among foreign banks, the average expected maximum yield of structured deposits of HSBC and Standard Chartered Bank in March was 6.31% and 5.35% respectively; Among Chinese funded banks, the average expected maximum rate of return of Guangdong Development Bank and Bank Of Changsha Co.Ltd(601577) structured deposits are 5.27% and 4.24% respectively; The average expected maximum yield of other banks is below 4%. Among the state-owned banks, Agricultural Bank Of China Limited(601288) structured deposits have an average expected maximum rate of return of 1.93%, which continues to be the bottom. It is also the only bank with an average rate of return of less than 2%.
In Liu Yinping's view, there are great differences in the income structure of structured deposits in different banks. Some structured deposits have a low expected rate of return, but the income stability is high, which is suitable for conservative investors to buy; Some structured deposits have a high expected rate of return, but the income stability is poor, which is suitable for investors with certain risk tolerance. This has certain requirements for the financial management level of investors. Before purchasing structured deposits, you need to carefully check the product description and find out the income rules.
Liu Yinping told the Securities Daily that at the beginning of this year, the yield of structured deposits showed a slight downward trend, and there is still room for pressure drop in the volume and price level in the future. On the one hand, regulators are still guiding banks to reduce the cost of liabilities, especially the cost of collecting deposits. The first thing banks should reduce is the scale of high-cost deposits such as structured deposits; On the other hand, after the adjustment of the pricing method of deposit interest rate in June last year, the level of long-term interest rate of ordinary fixed deposit has been greatly reduced, and there is limited room for further decline under the fierce competition for deposits. However, the yield of structured deposit should be significantly higher than the time deposit interest rate of the same term, and there is still some room for decline in the future.
