Bank of Shanghai Wealth Management received the approval for opening, and 29 wealth management companies have been established
Summary: The bank’s wealth management subsidiary has added another child. The bank’s wealth management subsidiary added another child. On the evening of March 4, the Bank of Shanghai announced that it had received the approval from the Shanghai Banking and Insurance Regulatory Bureau to allow its wealth management subsidiary, Shanghai Bank Wealth Management Co., Ltd.
China Times (www.chinatimes.net.cn) reporter Lu Mengxue reported in Beijing
The bank’s wealth management subsidiary added another child.
On the evening of March 4, Bank of Shanghai announced that it had received the approval from the Shanghai Banking and Insurance Regulatory Bureau to allow its wealth management subsidiary, Shangyin Wealth Management Co., Ltd. (hereinafter referred to as: Shangyin Wealth Management), to open for business. City Commercial Bank’s Wealth Management is about to open.
“The establishment of Bank of Shanghai Wealth Management is an important measure for the company to actively implement regulatory requirements, strengthen risk isolation of wealth management business, and promote the healthy development of wealth management business.” Bank of Shanghai said that the company will perform relevant procedures in accordance with regulatory requirements, and promote Bank of Shanghai Wealth Management to open and operate as soon as possible.
Approved to open
As early as January 2019, after the board of directors of Bank of Shanghai reviewed and approved the proposal to establish a wealth management subsidiary, Bank of Shanghai began to actively prepare for a wealth management subsidiary.
At that time, Wu Jun, general manager of the Asset Management Department of Bank of Shanghai, said in an interview that the positioning of Shanghai Bank Wealth Management is to follow the advanced asset management institutions, combine the resource endowment of the parent bank, improve the product and service model, and continuously and steadily enhance the competitiveness of products and services. Customer service level, and promote the significant improvement of the parent bank’s service capabilities, and become a market-competitive asset management company. Internally, it will serve the parent bank’s wealth management strategy well, give full play to the functions of subsidiaries, and expand the parent bank’s investment and financing functions and financial service capabilities; externally, it will enrich product strategies and product lines and improve external financial service capabilities.
At the same time, he said that Bank of Shanghai is promoting the establishment of wealth management subsidiaries from four aspects: promoting product transformation, building an independent risk management system, building a sound technology system, and building a sound operation and management structure.
In July 2021, Bank of Shanghai Wealth Management was approved for establishment. Now more than seven months have passed, Bank of Shanghai has finally obtained the opening approval from the Shanghai Banking and Insurance Regulatory Bureau.
According to the approval of the Shanghai Banking and Insurance Regulatory Bureau, the registered capital of Shanghai Bank Wealth Management is 3 billion yuan, and the registered place is Huangpu District, Shanghai. Consultancy and consulting services and other related businesses.
In comparison, the registered capital of the wealth management subsidiaries of other city commercial banks that have been opened is mostly 1-2 billion yuan, and the registered capital of Shanghai Bank Wealth Management is currently the highest among city commercial banks.
Since December 2018, the regulatory authorities have adhered to the principle of “one mature, one approved”, and have approved the establishment of 29 wealth management companies, of which 24 have been approved to open. After Bank of Shanghai opened, only Minsheng Wealth Management and Bo Yin Wealth Management remained. , Goldman Sachs ICBC Wealth Management, Hengfeng Wealth Management 4.
After the opening of Shanghai Bank Wealth Management, the 7 bank wealth management subsidiaries initiated and established by city commercial banks will also be assembled.
The scale of wealth management ranks first among city commercial banks
The data shows that between 2019 and 2021, the average compound growth rate of Shanghai Bank’s asset management business reached 18%; at the end of September 2021, the existing scale of Shanghai Bank’s wealth management products reached 432.942 billion yuan, an increase of 13.27% from the beginning of the year, ranking first among city commercial banks; The proportion of net worth products reached 95.78%, an increase of 20.99 percentage points compared with the end of the previous year, ranking the forefront of the industry.
Wealth management business has always been one of the business priorities of Bank of Shanghai, and its wealth management investors are mainly retail customers. In the third quarter of last year, the number of retail wealth management customers increased by 11.61% compared with the end of the previous year. In recent years, based on the development and transformation of wealth management business, Bank of Shanghai has accelerated the improvement of its product system by focusing on customer needs, and has created a diversified product line of absolute income covering cash, fixed income, fixed income + and mixed.
In 2021, Bank of Shanghai’s revenue and profitability will also achieve good growth. Among them, the operating income was 56.23 billion yuan, a year-on-year increase of 10.81%; the net profit attributable to the parent was 22.042 billion yuan, a year-on-year increase of 5.54%.
Net interest income is still the main source of income for Bank of Shanghai, accounting for more than 50% of revenue in the past five years, of which the third quarter of 2021 accounted for 69.68%, a year-on-year increase of 6.94%.
Intermediary business income is the second largest source of income, accounting for 10%-20% of revenue in the past five years, and the proportion in the third quarter of last year increased by 3.64 percentage points compared with the beginning of the year. In recent years, Bank of Shanghai has complied with the new asset management regulations for net worth transformation, and the scale of wealth management has grown steadily, resulting in a corresponding increase in fee income. At the same time, the scale of fund agency sales and fee growth have greatly promoted the net fee and commission income. Last year’s procedures Net fee and commission income increased by 38.30% year-on-year.
In addition, Bank of Shanghai’s assets and liabilities maintained a growth trend, the growth rate of deposits and loans was relatively good, and the structure was optimized. At the end of 2021, the bank’s total assets increased by 7.76% compared with the end of the previous year, and the total loans and advances to customers increased by 11.44% compared with the end of the previous year, accounting for 46.12% of the total assets, an increase of 1.52 percentage points compared with the end of the previous year. The total deposits increased by 11.81% over the end of the previous year, accounting for 59.26% of the total liabilities, an increase of 2.15 percentage points over the end of the previous year.
The asset quality and provision level both declined slightly, but the overall asset quality was stable, the overall provision was sufficient, and the risk offset capability was relatively stable. Specifically, at the end of 2021, the non-performing loan ratio of Shanghai Bank was 1.25%, an increase of 0.06 percentage points from the third quarter and a year-on-year increase of 0.03 percentage points, reaching a five-year high. The provision coverage ratio also declined slightly, down 30.64% from the third quarter and down 20.25% year-on-year.
Bank of Shanghai stated that the establishment of Shanghai Bank Wealth Management is an important measure to actively implement regulatory requirements, strengthen risk isolation of wealth management business, and promote the healthy development of wealth management business. As a wholly-owned subsidiary of Bank of Shanghai, Shanghai Bank Wealth Management will adhere to customer-centricity, build intelligent wealth management experts around urban residents, and become an asset management institution with professional services, excellent quality and strong market competitiveness.Return to Sohu, see more
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