The decline in wealth will not affect the development of great wealth management of China Merchants Bank

On August 19th, China Merchants Bank (600036.SH/3968.HK) disclosed the 2022 interim report and submitted a "stable and highlight" transcript. However, wealth management handling fees and commissions revenue decreased by 8.13%year -on -year, dragging down the growth rate of non -interest income, which was less than interest income, and dragging down the revenue of major wealth management only increased by 0.3%year -on -year.

Does the "Great Wealth Management" of China Merchants Bank encountered a bottleneck? The competition in the wealth management market is becoming increasingly fierce. Where is the moat of China Merchants Bank?

"A single indicator of wealth management income is not enough to measure the ability and development of the great wealth management of China Merchants Bank, which is affected by the market." A senior wealth management practitioner said, "The number of AUMs and wealth customers of China Merchants Bank maintains a high growth momentum."

Why does the increase in the growth rate of Merchants Bank's wealth management revenue decline?

"One is the high base effect, and the other is the influence of the capital market fluctuations and the impact of reducing real estate trusts." A bank investor analyzed.

The high base is because of the first half of 2021, benefiting from the capital market and "buying the base heat for the whole people", China Merchants Bank's wealth management handling fee and commission income increased by 32.6%year -on -year, reaching a new year in recent years. Essence

The dismantling of the wealth management income of China Merchants Bank in the first half of the year was mainly affected by funds and trusts. The revenue of agency funds was 3.474 billion yuan, a year -on -year decrease of 46.95%; the revenue of the agency trust plan was 2.287 billion yuan, a year -on -year decrease of 49.49%. These two business challenges, in a sense, are the common challenges of the industry in the environment.

Merchants Bank's decline in fund income attributes to "decreased in the configuration of customer equity products under market fluctuations." In the first half of this year, the capital market fluctuated sharply. The Shanghai Composite Index once fell below 2900 points, a decrease of more than 20%from the beginning of the year. The emotional spread of the customer's "dare not to invest, can't invest, and does not want to invest". The newly issued fund in the market is cold, and the scale decreases by 60%year -on -year, which is in sharp contrast to the formation of a year ago. Industry insiders analyzed: "The fund business of each agency sales institution is more or less affected, and the large -scale market sales market for public offering funds of China Merchants Bank's equity funds is huge, and the impact is the greatest."

According to data disclosed by the China Fund Industry Association, as of the end of June, the scale of the ownership fund of China Merchants Bank's equity public offering funds was 709.5 billion yuan, leading in the market; non -monetary market public funds had a scale of 809.7 billion, ranking among the best in the banking industry.

The China Merchants Bank interpretation of the decline in the revenue of the agent trust plan was "actively adjusting the business direction, the active trust business decreased", and the background of the active adjustment was "the reform of the house" and "the reform of the trust business". Since the first half of this year, the risk of real estate non -standard trust has continued to outbreak, trust distribution agencies and sales agencies have been under pressure, and market transformation and adjustment moves have accelerated. According to the disclosure of the Trust Industry Association, by the end of the first quarter, the scale of trust assets decreased by 1.06%year -on -year, of which the capital trust invested in real estate was 27.71%year -on -year.

AUM increased 17.2% year -on -year

"I have always felt that handling fees and commissions income are not enough to measure the ability of wealth management institutions." Said a senior practitioner who experienced the work experience of wealth management institutions at home and abroad.

The wealth management industry usually says two models: the seller model is "product -centric", paying attention to how to sell products and acquisition more; the other is the "customer -centric" buyer model, that is Gu He's asset allocation service.

For wealth management markets, different types of products have different ways to generate income and have different links, and their rates are also high and low. In general, the fees and commissions of funds and trust agencies are the highest, especially for complex equity funds. Under the direction of strong and medium, employees are prone to motion deformation, such as inducing customers to purchase high -risk complex products regardless of risk appropriateness.

The customer -centric buyer model is more concerned about how to improve the size and service satisfaction of managing customers. The research report of CICC and other securities firms pointed out that Aum, which represents customer assets, is the most important result indicator of the first stage of wealth management transformation.

From a customer's perspective, China Merchants Bank proposed the concept of AUM (managing total customer assets), and replaced AUM instead of savings deposits as the core indicator of retail business. As of the end of June 2022, the total number of retail groups of China Merchants Bank reached 178 million, AUM reached 1.172 billion yuan, an increase of 17.2%from the same period last year, and an increase of 8.19%over the end of the previous year. Compared with trillion yuan, it increased by 314%; households averaged AUM.658 million yuan, an increase of 8.5%year -on -year. The structure of AUM changes due to changes in customer configuration needs. China Merchants Bank wrote in the interim report: "Customer risk appetite declines, and customer wealth configuration transfers to stable products." In contrast to the scale of the fund and the trust agency, the balance of retail customers' deposits was 2452.819 billion yuan, an increase of 13.13%over the end of the previous year; the balance of retail wealth management products was 3352.949 billion yuan, an increase of 11.62%over the end of the previous year; the agency insurance premium was 37.057 billion yuan, which A slight decrease of 0.73%year -on -year, but it was mainly affected by the transformation of insurance products from the payment to the date. From the perspective of income, China Merchants Bank's agency sales revenue was 3.493 billion yuan, an increase of 22.60%year -on -year; China Merchants Bank's agency insurance income was 8.984 billion yuan, a year -on -year increase of 61.61%. The supply of diversified risk aversion products has formed a certain replenishment on the decline in fund sales expenses, but due to the differences in different product rates, it is impossible to fully fill the gap in income. "As long as AUM is still growing at high speed, the prosperity of the capital market only affects the commission rate. Once the market recovers the market after the Ming Dynasty, the commission fee rate increases, and wealth management income can be shined." A bank investing in large V said.

A senior wealth manager said that the market is currently at a lower point, and the demand for customers' counter -trend configuration has risen.

"In the future, the volatility of the capital market will be increased, and dynamic changes in customer demand in aggressive and risk -aversion may become the norm." The wealth manager said, "The result of the collection should be used as the result of serving customers, not the reason."

In a sense, the fluctuation of wealth management income is a painful period that wealth management agencies to "centered on customers" and must bear.

Flow competition is hot

According to CICC's calculations, the scale of Chinese residents' financial assets in 2030 is expected to reach 4.86 trillion yuan. The scale of revenue of the large wealth and capital management industry chain is expected to increase to 3.5 trillion yuan. The sales end revenue is expected to increase to 1.3 trillion yuan.

The dispute between channel traffic is becoming more and more fierce. The third -party platform represented by Ant Financial and Tiantian Fund quickly attracted the traffic through the scene to attract the envy of traditional institutions; more brokerage channels to build the channels to catch up with market share.

China Merchants Bank "20 years of grinding a sword" has accumulated 100 million -level account customer bases, especially the high -end customer base group. In 2002, China Merchants Bank launched the "Golden Sunflower Finance" brand and set up a team of financial management managers. In 2006, it first launched the "Five Star Selection". In recent years, China Merchants Bank has seized the financial management of the bank's efforts to make the bank's financial management, and took the lead in creating the "Fintech Bank". The MAU of China Merchants Bank and the two APPs living in Palm has reached 100 million levels.

China Merchants Bank explores the "people+digital" service model, that is, the customer manager+APP+remote service, which continues to build the channel advantage and characteristics of the era of wealth management. Innovate the "Chao Chao" to introduce the entry service of other banking management and asset management institutions in an open platform.

It is worth mentioning that "Chao Chaobao" was launched in just one and a half years. The number of customers in Chaotao was 200.82 million, an increase of 30.38%over the end of the previous year. This is a product that is born and operated by pure online operations under digital thinking. It has opened up the main account and wealth account. It also proves that the low -cost and wide service radius of the bank's "digital operating model" can go through. Chao Chaobao opened the traffic entrance of Merchants Bank's wealth management, and promoted the number of wealth products to hold a position of 40.7486 million, an increase of 7.84%over the end of the previous year, higher than the increase in the number of overall retail customers.

"Customer -centered" is difficult and correct

The market generally believes that future wealth management will definitely transform from the seller model to the buyer model. CITIC Construction Investment once pointed out in a research report that from the perspective of European and American experience, product commission rates will be reduced, and future wealth management income will shift from the product side to the client.

At the beginning of this year, China Merchants Bank specially reiterated the core values ​​of "centered on customers as the center and creating value for customers", and comprehensively promoted the "original plan". At that time, many people felt that this was an empty words. In fact, who can take the lead in the transformation from "product -centric" to "customer -centric" can we seize the heights of the market. From the perspective of institutional transformation, it involves a series of challenges such as service models, investment research, assessment, and risk management.

CICC proposes that the customer -centric buyer model, the core capabilities of various institutions will be the full life cycle service capabilities around the customer's reach, investment, and companionship.

The service capabilities of the whole life cycle are in a lot of challenges and pressure in the "new era of capital management". For domestic investors, before the new rules of asset management, wealth management, trust and other products "buy is to get income". Essence In the era of new rules of capital management, the uncertainty and volatility of the market were superimposed. In the first half of the year, the bonds and bonds were double -killed, the wealth management products broke the net, and the trust continued to default.

"The more this time, the more catalytic wealth management agencies really improve their ability and open the gap." The aforementioned senior wealth practitioners believe.

Wealth management must provide "inverse humanity" investment recommendations for customer income; it is also necessary to fully inspect customers' ability to afford risks and fluctuations, and "smooth humanity" to improve the customer's process experience. Maintaining contradictions and balance is the eternal problem of wealth management and its core value.

"Strengthen the construction of wealth management core capabilities such as investment and research capabilities, asset allocation capabilities, and companionship ability, so that 'professional and temperature' has become a lifeline for the wealth management of China Merchants Bank." China Merchants Bank wrote in the interim.

At the first quarter performance exchange meeting, the assistant to China Merchants Bank's president Zhong De Sheng also proposed "accelerating the construction of a customer -centric asset allocation professional ability".

On the basis of integrating investment research capabilities and enriching product organization in the first half of the year, China Merchants Bank began to fully promote the TREE asset allocation system. The real asset allocation must be long -term, deep, and dynamically KYC (understanding customers), KYP (understanding products) and KYM (understanding the market). Limited by manpower, the asset allocation services of many domestic institutions usually focus on higher net worth people, so that many people have misunderstandings that "only rich talents need asset allocation". However, China Merchants Bank Tree promoted online and online, showing simple and clear, and realizing "let wealth management fly into ordinary people's homes."

"Companion" is the key to increasing customers' sense of service value and gain. China Merchants Bank stated in the interim report that it is committed to building a "full journey" companion system.

"We emphasize that there is no shortage of key points and respond to customer needs in a timely manner." A person with a wealth of China Merchants Bank said that at different stages of the customer's first purchase period, stability maintenance period, and discharge period, the content and services that customers need most needed.

When market fluctuations in the first half of this year, open platform resources are used to integrate online and offline activities through product roadshow, live broadcast, and "asset allocation season" to maximize the maximum customer anxiety.

"Investment private scientific research" help

"Our various lines have strongly supported the development of the retail business." At the first quarter performance exchange meeting, the president of the China Merchants Bank Wang Liang said that it was time to summarize the success of the recruitment bank's retail business.

In the interim report, China Merchants Bank proposed the integration of professional advantages of investment banks, commercial banks, private banks, science and technology, research, etc., and created the characteristics of integrated services of "private scientific research".

"About 70%of the private banking customers of China Merchants Bank are entrepreneur or enterprise directors and supervisors. In addition to their own wealth management, they have a relatively different demand for public wealth management customer groups in people, enterprises, homes, and clubs. "China Merchants Bank President Zhong De Sheng said at the aforementioned exchange.

"Investment private scientific research" has realized the integrated service of "individual+enterprises" for private bank customers and the companies behind them. As of the end of June, the private business coverage rate of key enterprises reached 30.57%.

A research report of Huatai Securities believes that the management of big wealth management is short -term; in the middle and long term, whether it can build a product service system covering the full life cycle and whether to obtain high -quality physical assets on the asset side will become the middle of the middle. Long -term competition.

The integration of "private scientific research" is the key to China Merchants Bank's ability to build long -term high -quality asset organizations.

The aura of the king of China Merchants Bank's retail is too large, so that many people's traditional impression is not as long as the public business. However, the China Merchants Bank has formed a competitive advantage in the market in the market in recent years. Focusing on the two major markets of direct financing and indirect financing, the FPA (customer financing) perspective is expanded. As of the end of June, the FPA balance was 5147.8 billion yuan, of which non -traditional financing balances accounted for 46.24%of the total amount of customer financing.

Merchants Bank's investment banking business has a leading level in the market. According to the interim report, the bank's owner's underwriting bond amount was 343.095 billion yuan, and the scale of debt financing instruments ranked third in the same industry; a number of high -profile mergers and acquisitions projects with a well -known market; market transaction (matching) business amount was 2,07.584 billion yuan, an increase of 24.20% year -on -year increased by 24.20% year -on -year Essence

In addition, the four major asset management subsidiaries of the China Merchants Financial Management, China Merchants Fund, China Merchants Fund Institute of Workers and China Recruitment Banking International increase their competitiveness in the field of segments, and the total size of the asset management business has a total of 4.6 trillion yuan. For public and asset management, provide assets and product ammunition depot for Merchants Bank Wealth Management.

It is worth noting that in this year's interim report, the China Merchants Bank proposed for the first time in the prospects that "promoting the accelerated development of key areas and the release of sustainable growth potential." The implication outside the question is that this may become a new growth level of the Merchants Bank Great Wealth Management 3.0 model.

The president of China Merchants Bank Wang Liang has a sentence: "It is not a hundred meters sprint but a marathon competition. It is more endurance and perseverance. If you want to run the marathon with a speed of 100 meters, you cannot persist."

Great Wealth Management this marathon has just begun.

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