CFIC Introduction
At present, the scale of the bank wealth management market has reached nearly 27 trillion yuan. Through the 2023 annual reports disclosed by A-share listed banks, we can get a glimpse of the new trends in bank wealth management.
At present, the scale of the bank wealth management market has reached nearly 27 trillion yuan. Through the 2023 annual reports disclosed by A-share listed banks, we can get a glimpse of the new trends in bank wealth management. According to statistics, by the end of 2023, the total scale of management products of 10 leading bank wealth management companies is 16.42 trillion yuan, accounting for more than 60%, 8 bank wealth management companies have reduced their scale, and 9 companies' "money-making effect" has weakened. Since the opening of the first batch of bank-based wealth management companies in 2019, the advantages of both the pioneers have gradually faded in the past five years, and the latecomers have become "dark horses", and the market map has changed, which also reflects the changes in the business logic of wealth management companies in different market environments. As of now, 17 wealth management companies have disclosed their 2023 results, and the trend of industry differentiation is obvious. In terms of scale, as of the end of 2023, 10 wealth management companies have managed more than one trillion yuan of products, and CMB Wealth Management and IB Wealth Management have exceeded 2 trillion yuan. Among them, CMB Wealth Management, IB Wealth Management and CNCBI Wealth Management ranked among the top three, with the scale of managed products of 2.55 trillion yuan, 2.26 trillion yuan and 1.73 trillion yuan respectively. In terms of scale growth, Ping An Wealth Management, Bank of Communications Wealth Management and Everbright Wealth Management ranked among the top three, with growth rates of more than 10%. Wealth management companies of large state-owned banks retreated to the second echelon, with the management scale of Bank of China Wealth Management, ICBC Wealth Management, ABC Wealth Management, CCB Wealth Management and China Post Wealth Management reaching 1.63 trillion yuan, 1.61 trillion yuan, 1.59 trillion yuan, 1.5 trillion yuan and 0.78 trillion yuan respectively. Behind the increase and decrease in scale, the market share is concentrating on the head institutions. According to CICC's statistics, the market share of the 10 joint-stock banks and their wealth management subsidiaries will increase to 43.5% in 2023, with a market share increase of 2.9 percentage points and a management scale of 11.6 trillion yuan, while the management scale of large state-owned banks and their wealth management subsidiaries will be 8.8 trillion yuan, with a market share decrease of 3.1 percentage points for the whole year, and the management scale of wealth management subsidiaries, joint venture wealth management companies and commercial banks without wealth management licenses will be 6.4 trillion yuan, with a total market share increase of 0.2 percentage points. From the perspective of "money-making effect", the net profit growth rate of CNCBI Wealth Management and Minsheng Wealth Management exceeded 10%; IB Wealth Management, Everbright Wealth Management, Ningbo Wealth Management and Qingyin Wealth Management showed the phenomenon of "increment but no increase in income"; CMB Wealth Management, Bank of China Wealth Management, ABC Wealth Management and CCB Wealth Management both saw their management scale and net profit decline, among which the net profit of ABC Wealth Management and CCB Wealth Management all fell by more than 50% year-on-year. Taste the sweetness of channel construction The "secret" of the growth of the scale of the joint-stock bank wealth management company comes from the channel construction, and the pioneers have tasted the sweetness from the inter-bank consignment. In the past, bank wealth management companies relied on the parent bank channel, but this limited the scale expansion to a certain extent. A person in the banking and wealth management industry said that the liberalization of inter-bank distribution channels is conducive to radiating a wider range of customers, so that financial institutions with stronger investment and research capabilities and better product operations can obtain richer channel resources. According to the analysis of Puyi Standard, the wealth management subsidiaries of joint-stock banks are actively developing distribution channels to increase customer reach, which has promoted the growth of their wealth management scale. CICC believes that the "strong binding" model between banks and their holding wealth management subsidiaries has begun to weaken, and some banks have begun to actively launch high-quality wealth management products that are not banks. Wealth management companies with rapid growth in scale have made great efforts to expand their channels. As of the end of 2023, IB Wealth Management's off-bank sales management scale was RMB870 billion, up by 70% last year, Everbright Wealth Management's non-parent bank sales reached RMB478.6 billion, up 99% from the beginning of the year, Ping An Wealth Management has cooperated with more than 40 interbank banks to carry out consignment business, with a balance of over RMB340 billion, and BOCOM Wealth Management has actively expanded off-bank consignment sales, with a balance of RMB662.536 billion as of the end of 2023, accounting for 53.80% An open and pluralistic omni-channel system with the parent actor as the main body has been preliminarily established. The reduction of the scale of wealth management of large state-owned banks is also related to the expansion of channels, and they are more cautious in carrying out inter-bank agency sales. "There is no 'scale anxiety' in the big state-owned banks. A person from a large state-owned bank wealth management company bluntly said that first, because the compliance requirements of large state-owned banks are higher, they cannot meet the rigid exchange needs of customers; second, large state-owned banks pay more attention to the growth of deposit scale, which also puts pressure on the growth of their wealth management scale. After experiencing a sharp drawdown of net value and a "redemption wave" in 2022, the development of wealth management companies has entered a new stage. At present, the entire wealth management industry chooses to seek stability, and the product style tends to be short-term, stable and low-volatility, and this trend is superimposed on the "asset shortage". "Loosening" with the parent bank and expanding the distribution agency is not as much as possible. The deputy general manager of a joint-stock bank wealth management company said that the ability to expand channels is only one aspect, and when the omni-channel is opened, the investment management ability and performance can truly reflect the competitiveness of the bank wealth management company. Looking forward to the whole year, Liao Zhiming, chief analyst of the banking industry of China Merchants Securities, believes that due to the reduction of deposit interest rates and keeping them low, the scale of wealth management is expected to maintain steady growth, and the high point may exceed 30 trillion yuan. Puyi Standard believes that with the joint efforts of financial institutions, it is expected that the wealth management industry will show a growth trend, and financial institutions should further improve their investment and research capabilities, carry out diversified channel layout, innovate products and services, strengthen customer relationship management, and strengthen compliance management.
Source of this article: Shanghai Securities News
Author: Ma Min, Xu Xiaoxiao (intern)
WeChat editor: Wang Qian
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