Trust companies have entered the performance disclosure period, and the growth pressure and differentiation trend are revealed behind the data.
As of January 17, more than 50 trust companies had “aired” their transcripts through the interbank lending market. On the whole, the profits of trust companies increased and decreased in 2021, but the profit growth was under pressure under the background of “two pressures and one decrease”.
Looking forward to 2022, some institutional analysts told reporters that in the future, the industry will still face the pressure of scale reduction and stricter supervision, and the industry differentiation will continue to intensify. Developing standard product business and strengthening wealth management capacity are the main breaking direction.
performance is under pressure and industry differentiation intensifies
Through the disclosed data (Unaudited), it can be seen that under the continuous promotion of “two pressures and one reduction” last year, the average operating revenue of 55 trust companies still increased by about 5%, of which the annual revenue of Zhongrong trust (5.814 billion yuan) and Minmetals trust (5.193 billion yuan) exceeded 5 billion yuan, and the revenue of 6 companies exceeded 3.5 billion yuan.
From the existing data, the profit differentiation among companies is intensifying. Among the 55 trust companies, when 29 trust companies achieved positive revenue growth, 35 trust companies achieved positive net profit growth, accounting for more than 60% of the existing data enterprises. Although some enterprises have achieved quality and efficiency improvement, and the profit growth rate exceeds the revenue, 14 enterprises have a net profit growth rate of more than 20%, and 12 enterprises have a decline rate of more than 20%, which is further exacerbated compared with 2020.
Taking COFCO trust as an example, while its revenue increased by 54.74% to more than 1 billion yuan (1.224 billion yuan), its net profit increased by 96.01% to 590 million yuan. As a head trust with a revenue of more than 5 billion yuan, Minmetals trust’s net profit fell sharply by 15.19% last year. In addition, the net profit of Kunlun trust decreased by 72.84% to RMB 343 million in 2021, and Bairui trust and Aijian Trust also decreased by more than 20% year-on-year. In a more extreme case, although the net profit of Great Wall Xinsheng trust increased by 79.88% in 2021, it still suffered a loss of RMB 1976.56 million.
Shanghai Aj Group Co.Ltd(600643) mentioned in the announcement that the profit change of Aijian Trust last year was mainly affected by the continuous pressure drop of industrial regulatory policies and the scale of financing and channel trust business. Bairui research also pointed out that the median operating revenue of trust companies in 2021 decreased compared with that in 2020, the distribution of net profit in both higher and lower ranges increased, and roe also decreased. These indicators reflect the operating pressure faced by trust companies in promoting business transformation.
Previously, according to the data of China Trust Industry Association, trust business income is still the main source of income for trust companies. By the end of the third quarter of 2021, the business income was 63.229 billion yuan, a year-on-year increase of 2.68%, accounting for 72.46%. At the same time, interest income, which accounted for a relatively small proportion, grew the fastest, reaching 4.444 billion yuan by the end of the third quarter of last year, a year-on-year increase of 12.89%.
From the perspective of assets, the scale of net assets of trust companies will increase as a whole in 2021. The number of trust companies with net assets of less than 10 billion yuan will decrease, and the tail will gradually move closer to the middle. Bairui research believes that this phenomenon is different from profit differentiation, which helps to improve the strength to resist risks and is more conducive to the development of the industry.
pressure drop requires continuous weighting
With the end of the transition period of new regulations on asset management, the era of large asset management will officially enter in 2022. From the data of the trust industry in the third quarter of 2021 disclosed by China Trust Industry Association, it can be seen that the balance of trust assets managed by the whole trust industry has decreased by 22.11% compared with the peak at the end of the fourth quarter of 2017, about 20.44 trillion yuan. Over the same period, the scale of financing trusts decreased by 35.13% year-on-year to 3.86 trillion yuan, the investment balance of real estate enterprises fell below 2 trillion yuan, and the investment in the securities market increased by 38.12% year-on-year.
Since the release of the new asset management regulations in 2018, the scale of trust assets has continued to decline, superimposing the pressure drop requirements of the regulatory authorities on the existing channel business, financing business with prominent shadow banking risk and non-standard capital pool business, and the whole trust industry is facing great transformation pressure. At the beginning of this year, it was reported that the trust company received window guidance from the regulatory authorities again, including not only the continuous pressure drop requirements for financing business, but also strict restrictions on “star products” snowball trust products.
According to the information disclosed by insiders to the first financial reporter, the latest regulatory requirements, including the scale of financing business, continued to drop by 20%. According to the previous target, the business scale should be about 4 trillion yuan by the end of 2021 and 3.2 trillion yuan by the end of 2022. “The financing business will gradually decline in the future and will slowly die out in the future.” The source said.
For the news that “the regulation requires trust companies to suspend the issuance of snowball trust plan products”, the person said that his institution has not received window guidance, and it is uncertain whether such products will withdraw from the market, but considering the risk matching of snowball products, industry remodeling will be inevitable.
A trust researcher told reporters that in 2022, the trust industry will continue to face the trend of continuous pressure drop in overall scale and stricter supervision. In this context, some trust companies with early transformation and strong strength may continue to develop under adversity, and the polarization trend of the industry may be strengthened. Risk prevention will continue to be one of the important tasks of trust companies. The researcher suggested that on the one hand, trust companies should strengthen personnel reserve, develop standard product business and strengthen wealth management ability; On the other hand, we should actively respond to the regulatory call, return to the origin of trust and accelerate the development of new businesses such as service trust. First finance reporter previously noted that in 2021, a number of trust companies have launched TOF / fof and other standard products business, and the scale has increased significantly during the year.
