The first quarterly report of a listed brokerage was released, and China Merchants Securities’ revenue and net profit fell year-on-year.

On the evening of April 24, the first quarterly performance report of a listed securities firm in 2022 was released.

In the first quarter of 2022, market volatility will intensify, China Merchants Securities will face challenges in its business activities, and its performance will be under pressure. In the first quarter of this year, China Merchants Securities achieved operating income of 3.696 billion yuan, a year-on-year decrease of 38.01%; net profit attributable to shareholders of listed companies was 1.49 billion yuan, a year-on-year decrease of 42.99%; basic earnings per share were 0.15 yuan. As of the end of the reporting period, the total assets of China Merchants Securities were 602.654 billion yuan, a year-on-year increase of 0.91%.

Among the main businesses of China Merchants Securities, only the investment banking business has achieved positive growth. Among them, China Merchants Securities realized net interest income of 188 million yuan in the first quarter, a year-on-year decrease of 63.01%, mainly due to the increase in interest expenses. Realized net brokerage fee income of 1.649 billion yuan, down 11.57% year-on-year; realized investment banking business fee net income of 449 million yuan, up 8.66% year-on-year; realized asset management business fee net of 207 million yuan, down 21.65% year-on-year; Investment income was 1.786 billion yuan, a year-on-year decrease of 9.91%. During the reporting period, the income from changes in fair value of China Merchants Securities was -1.206 billion yuan, a year-on-year decrease of 465.49%, mainly due to changes in the valuation of financial instruments.

On the evening of April 12, CITIC Securities disclosed the first quarterly performance report of a listed brokerage firm in 2022. In the first quarter, CITIC Securities achieved operating income of 15.216 billion yuan, a year-on-year decrease of 7.2%; net profit attributable to shareholders of the parent company was 5.229 billion yuan, a year-on-year increase of 1.24%. Under the volatile market environment this year and the overall good performance of the securities industry (high base) last year, the performance of securities companies in the first quarter of this year may be under pressure as a whole. The non-bank team of Orient Securities said that after three consecutive years of industry years from 2019 to 2021, the performance differentiation in 2022 will be significantly intensified. Those leading brokerages whose self-operated business mainly focuses on de-directional institutional businesses such as stock derivatives Will show stronger performance resilience.

The non-bank team of Huachuang Securities also believes that, benefiting from the non-directional reform of self-operated business, the decline in the performance of leading securities companies will be lower than that of the industry as a whole, and the performance of some securities companies may show positive growth. The performance of some wealth management featured securities firms with a small proportion of self-operated business may outperform the overall performance level of the industry.