As the performance of each listed bank of A shares has been disclosed. According to statistics from the Beijing News Beike Finance reporter, the net profit of 19 A-share listed banks' wealth management subsidiaries in the first half of this year was 16.546 billion yuan, a year-on-year increase of as high as 68%. However, many bank wealth management subsidiaries experienced a decline in product scale in the first half of the year.
Some industry insiders said that 2022 is the first year after the transition period of the new asset management regulations officially ended, and it coincided with the beginning of the year that market fluctuations once significantly increased the pressure on financial management to "break the net", and bank financial management is facing major tests. However, the current net value rate of bank wealth management has increased to more than 95%, and the structure has been further optimized. With the future development of bank wealth management products, it is expected that the scale of wealth management will exceed 30 trillion yuan in the second half of the year.
Many bank wealth management subsidiaries have net profits exceeding 1 billion in the first half of
According to the semi-annual report of listed banks, many bank wealth management subsidiaries have good profits in the first half of this year. Among them, China Merchants Bank Wealth Management's net profit reached 2.066 billion yuan, making it the most profitable among the 19 bank wealth management subsidiaries with disclosed performance. Xingyin Wealth Management and China Construction Bank Wealth Management followed closely behind, with net profits reaching 1.958 billion yuan and 1.913 billion yuan respectively. In addition, the net profits of many bank wealth management subsidiaries such as Bank of China Wealth Management , Agricultural Bank of China Wealth Management, and Xinban Wealth Management all exceeded 1 billion yuan.
Among the 19 bank wealth management subsidiaries, the net profit growth rate of 10 bank wealth management subsidiaries including China Construction Bank Wealth Management, Bank of China Wealth Management, Agricultural Bank Wealth Management, ICBC Wealth Management, Huaxia Wealth Management , Hangzhou Bank Wealth Management, all exceeded 100%, among which the net profit growth rate of Qingyin Wealth Management was the highest at 537.5%.
"The net profit growth rate of small and medium-sized bank wealth management subsidiaries is mainly due to their small scale before." Some industry insiders said that, overall, the performance of bank wealth management subsidiaries has risen sharply, and the performance of bank wealth management companies in the first half of the year is due to the one-time release of the net value transformation dividends of the original expected income-based products.
From the perspective of product scale, some large bank wealth management subsidiaries have shown a downward trend. Data shows that among the four major state-owned bank wealth management subsidiaries, except for the BOC Wealth Management that did not disclose the balance of wealth management products, the management scale of the other three products has declined. However, the product management scale of many joint-stock bank wealth management subsidiaries such as China Merchants Bank Wealth Management, Xingyin Wealth Management, and Xinyin Wealth Management has increased slightly.
However, overall, the scale of financial management has grown steadily. According to the "Semi-annual Report on China's Banking Industry Financial Management Market" (hereinafter referred to as the "Report"), as of the end of June 2022, there were 35,600 wealth management products with a stale balance of 29.15 trillion yuan, and increased by 12.98% year-on-year.
Everbright Securities Chief analyst Wang Yifeng said that the transition period of the new asset management regulations has officially ended, and bank wealth management has entered a stage of net value development. As financial management operations become more standardized and mature, the industry will also enter a relatively stable growth trend. It is expected that the scale of financial management in the second half of the year will likely exceed 30 trillion.
All wealth management subsidiaries actively respond to market fluctuations
The data of the report shows that as of the end of June 2022, the scale of net value wealth management products was 27.72 trillion yuan, accounting for 95.09%, an increase of 2.13 percentage points from the beginning of the year and 16.06 percentage points from the same period last year. However, in the first half of this year, due to the influence of market volatility factors, bank wealth management products, which have just completed the net value transformation, have experienced an unprecedented wave of yield retracement, and the net value of products has fallen below "1" and has become a "growth worries" in the transformation of bank wealth management net value.
"In the first half of this year, the 'broken' of wealth management products often made us anxious." A person from a bank wealth management subsidiary told the Beijing News reporter that bank wealth management had previously given investors the impression that principal and interest protection. After breaking the rigid redemption and transforming into net value, the returns of bank wealth management fluctuated with market fluctuations, so some investors could not accept the situation of floating losses.
In order to cope with market fluctuations, many bank wealth management subsidiaries have taken the initiative to attack many times.
Agricultural Bank Deputy Governor Lin Li said at the performance press conference that in the first half of the year, Agricultural Bank of China Wealth Management achieved "zero net breaks" for redemption products, and all remaining net breaks remained at the lowest level of comparable peers. He believes that this is due to the bank's investment and research capabilities, relatively reasonable asset allocation and other capabilities.
Lin Li said that to establish a more scientific method of asset allocation and portfolio management, we must adhere to the financial management law with the goal of absolute return , adhere to the key points of management based on risk warning, adhere to the allocation of assets based on the portfolio center, and adhere to the investment method with global optimization as the core.
, Chairman of China Construction Bank Financial Management, said at the "2022 Summer Summit of the 50-person Forum for China Wealth Management", that at present, the net value of products has gradually emerged due to market fluctuations. Although there must be tolerance for breaking the net, we must pay close attention to the amplitude and breadth of breaking the net. It is the manager's responsibility to prevent investors from causing large-scale losses.
From the actual operation, many bank wealth management subsidiaries have also adjusted the structure of bank wealth management products, and issued more stable fixed income products, while the "fixed income +" mainly based on mixed categories has declined.
According to the data from the "Report", in the first half of this year, the scale and proportion of fixed income wealth management products showed an upward trend. As of the end of June 2022, the balance of fixed income wealth management products was 27.35 trillion yuan, an increase of 20.22% year-on-year, accounting for 93.83% of the remaining balance of all wealth management products, an increase of 5.65 percentage points from the same period last year; the balance of mixed wealth management products was 1.72 trillion yuan, a decrease of 41.97% year-on-year, accounting for 5.90% of the remaining balance of all wealth management products; the balance of equity wealth management products was 79.5 billion yuan, a decrease of 5.69% year-on-year, accounting for 0.27% of the remaining balance of all wealth management products.
However, Wang Yifeng said that "breaking the net" did not cause much additional product scale disturbance. This is mainly because of the limited redemption products in terms of financial products. At the same time, customers pursue stable investment returns and strong bank channel capabilities, so customers will not operate at high frequency due to short-term fluctuations. In addition, in the state of market fluctuation, there are not many alternative asset management products.
Pension and financial management has become an important innovation direction
At this year's performance conference, pension and financial management has become a key topic mentioned by many banks and financial management subsidiaries.
"Pension and financial management has great strategic significance for accelerating the third pillar of pension in my country. What the Agricultural Bank of China needs to do is to transform this great potential into great achievements." Lin Li said that Agricultural Bank of China has launched the first phase of pension and financial management products in 10 pilot cities including Beijing, Qingdao , Chongqing, etc., and the second product is also under preparation.
He introduced that financial and elderly care products mainly have five points: one is to encourage long-term investment, the second is to emphasize the operation of more stable investment, the third is to highlight the attributes of universal elderly care, and the fourth is to provide multiple types of guarantees. Here we take safety as the primary goal of investing and operating elderly care products. Fifth, in response to some special difficulties that investors may face, pension financial products provide early redemption function.
Bank of China Deputy Governor Chen Huaiyu said that BOC is actively applying for specific pension savings pilot qualifications, drafting a pilot plan, and preparing to submit it to the regulatory agency. The relevant departments of the head office branch have set up a work promotion team to provide sufficient human resources guarantee for the pilot work. At the same time, the main functions of the system transformation will be put into production with technology. Some peripheral system functions and adjustments will be put into production one after another in September.
data shows that as of the end of June, 27 elderly care financial management companies have been successfully sold, and 231,000 investors have subscribed to more than 60 billion yuan in total. At present, the pilot institutions for elderly care products have been expanded to "10+1", namely, 6 state-owned banks, 4 joint-stock banks, and 1 joint-venture financial management company; in addition to expanding the scope and region of the pilot institutions, the upper limit of the fundraising scale of the first batch of four pilot institutions has increased to 50 billion yuan, and the total upper limit of the pilot scale of elderly care financial management has increased to 270 billion yuan.
Beijing News Shell Finance reporter Jiang Fan
Edit Song Yuting
Proofreading Wang Xin
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