Source: Time Weekly - Time Online
Article | Reporter Huang Yukun
The intermediary business income of listed banks is facing the bottleneck of growth.
According to Wind data, as of the closing of April 25, among the 25 A-share listed banks that have disclosed their 2023 annual reports, the total net income of fees and commissions has decreased by nearly 50 billion yuan compared with 2022, of which only three banks' net income of fees and commissions has increased year on year, and some banks have decreased by more than 30%.
On the whole, against the background of the decline in the middle income, the sharp growth of the insurance revenue of several banks' consignment sales last year was a rare highlight. However, since the third quarter of last year, the income of insurance intermediary business of many banks in the fourth quarter has declined significantly due to the impact of the cut in fees of bancassurance channels. with China Merchants Bank For example, the agency insurance income of the Bank in the fourth quarter was 974 million yuan, a month on month decrease of 2377 million yuan, accounting for only 7% of the year.
Intermediate business income is regarded as the "second growth curve" of bank performance. Many industry insiders interviewed are optimistic about the prospects for the performance of the medium income business of listed banks this year. "This year, it is generally stable or slightly increased. The positive factor is that the financial management scale is expected to increase, and the negative factor is that banks still have pressure to reduce fees and interest." Postal Savings Bank Researcher Lou Feipeng told Time Weekly.
Source: Tu Chong's creativity Nearly 50 billion less in a year, with weak growth in wealth related income
Wind data shows that 25 A-share listed banks will achieve a cumulative net income of 705.79 billion yuan in fees and commissions in 2023, a decrease of 49.806 billion yuan compared with 2022, a year-on-year decline of 6.59%, of which, Concord Bank The net income of handling fees and commissions is negative, and the other 24 banks only Bank of China 、 Zheshang Bank 、 BANK OF QINGDAO The three companies achieved growth.
Specifically, among the six state-owned banks, Industrial and Commercial Bank of China The decline of medium income business is the largest. In 2023, the net income of handling fees and commissions will be 119.357 billion yuan, a year-on-year decrease of 9.968 billion yuan, or 7.7%. ICBC said in its annual report that due to factors such as fluctuations in the capital market, changes in investors' risk preferences, and the reform of the rate of public funds, the bank's income from personal wealth management, private banking, corporate wealth management, asset custody and other businesses has decreased; The rate of guarantee and commitment business decreased, and the income decreased.
Compared with large state-owned banks, some national joint-stock banks and local banks experienced a greater decline in the middle income. Industrial Bank In 2023, the net income of handling fees and commissions will be 27.755 billion yuan, a year-on-year decrease of 38.38%; Bank of Beijing In 2023, the net income of handling fees and commissions will be 3.752 billion yuan, a year-on-year decrease of 46.90%; Changshu Bank In 2023, the net income of handling fees and commissions will be 32 million yuan, a year-on-year decrease of 82.84%.
"Our central revenue has indeed declined significantly, mainly due to the centralized liquidation of expected income wealth management products in accordance with regulatory requirements, resulting in a decline in annual product fees. In addition, the capital market turmoil last year, the growth of wealth related central revenue was also limited, and the sales revenue on a commission basis also declined due to the policy of reducing insurance rates. In addition, there is a requirement to reduce fees and interest, so it has a great impact on the revenue. " Yang Shujian, president of BOB, said at the industry performance meeting.
In fact, from the perspective of the reasons for the decline of the intermediate income business of various banks, the year-on-year decline in the income of wealth management business is an important factor. According to the data, the service charge income of postal savings bank's financial management business in 2023 will be 2.821 billion yuan, down 62.91% year on year, Bank of Communications ICBC's wealth management business income also declined by more than 15%.
In addition, the agency business income of many banks also declined year on year. Bank of China, as the only one among the six major state-owned banks with medium income growth, will generate 21.134 billion yuan of commission income from agency business in 2023, a year-on-year decrease of 5.31%.
Lou Feipeng said to the reporter of the Time Weekly that from the perspective of customers, due to the fluctuation of the capital market, residents' deposits increased rapidly, and their investment in wealth management and funds declined, reducing the agency fee income of banks. At the same time, it also reduced the bank's custody business, driving the decrease of custody revenue. From the policy perspective, the reform of the rate of public funds, banks' initiative to reduce fees and yield profits, the decrease of the rate of guarantee and commitment business, the decrease of bank card fees, etc., reduced the income from intermediary business. The combined effect of these factors has led to the decline of intermediary business income of small and medium-sized listed banks.
Everbright Bank Zhou Maohua, macro researcher of the Financial Market Department, analyzed the reporter of the Times Weekly and said that in recent years, the growth rate of some banks' intermediary business income has slowed down, which is related to the macro operating environment. On the one hand, macroeconomic and financial market fluctuations affect the demand of residents and enterprises for related financial products and services; On the other hand, in recent years, financial institutions have continued to reduce fees and profits for the real economy, which is also one of the reasons for the decline in the growth rate of income from intermediary services of some banks.
The premium of consignment insurance is no longer high, and it began to "cool down" in the fourth quarter of last year
In the context of the current downward trend in deposit interest rates and the scarcity of hard cash attributes, insurance products are still the core option of wealth management for investors with low risk appetite, as well as an important contribution of banks' intermediate income. As a result, many listed banks recorded a relatively high growth in their insurance sales revenue last year.
According to the annual report, CITIC Bank In 2023, the commission charge of agency business will be 5.855 billion yuan, an increase of 163 million yuan or 2.86% year on year. CITIC Bank said that it is mainly due to the rise of risk aversion and demand of customers, and the growth of insurance agency fees and commission income under the influence of market fluctuations. In addition, Ping An Bank 、 Minsheng Bank Industrial Bank and other banks will also increase their personal insurance income by more than 50% in 2023.
It is worth mentioning that in August last year, the Life Insurance Department of the State Administration of Financial Supervision issued the Notice on Regulating Bank Agency Channel Insurance Products to all life insurance companies, requiring all insurance companies to clearly explain the expense assumption, expense structure and commission ceiling in the product actuarial report when filing products; All insurance companies should disburse the commission rate paid to the bank according to the actual situation. The actual fees such as commission should be consistent with the filing materials, that is, "reporting to the bank in one".
At the press conference on data and information of the banking and insurance industry in the third quarter of 2023, Liu Sheng, the person in charge of life insurance supervision, said that, according to preliminary estimates, the commission rate of the bancassurance channel has decreased by about 30% compared with the previous average level.
In terms of quarter by quarter, the hot situation of underwriting insurance has begun to "cool down" since the fourth quarter of last year due to the reduction of fees in the bancassurance channel, and the chill has also spread to all listed banks.
According to the third quarter report and annual report of China Merchants Bank in 2023, in the first three quarters of 2023, the bank's agency insurance income was 12.611 billion yuan, up 16.94% year on year; In 2023, the Bank's agency insurance income will be 13.585 billion yuan, up 9.33% year on year. This means that the agency insurance income of China Merchants Bank in the fourth quarter of last year was only 974 million yuan, accounting for only 7% of the whole year. In the annual report, China Merchants Bank frankly said that the growth rate of its agency insurance income was somewhat narrower than that of the first three quarters due to the impact of the reduction of bancassurance channel fees.
Although most banks did not disclose the specific data of the income from underwriting insurance in the third quarter report, it is not difficult to see the gradual slowdown trend from the growth rate of the income from underwriting insurance in the first half of last year and the whole year. For example, Industrial Bank, China Minsheng Bank and China Everbright Bank increased their income from underwriting insurance business by 123.47%, 115.04% and 81.03% respectively in the first half of last year, while the annual growth slowed to 92%, 59.33% and 43.66% respectively.
At present, the medium income business is still the focus of the layout of listed banks, and the executives of various banks are also relatively optimistic about the performance of this year's medium income business. Zhang Min, Vice President of Industrial Bank, said at the industry performance conference that the bank will take 2024 as the year of upgrading of wealth bank, and will take the upgrading of wealth bank as the first of the three strategies of retail business of the bank in the next few years. In 2024, it will strive to break through 6 billion yuan in retail wealth intermediary business income, of which the growth rate of agency income will remain above 10%.
"Next, BOB wants to increase the development of strong capital business. Of course, on the one hand, the development of strong capital business needs strong marketing ability, on the other hand, it needs to launch corresponding products in combination with the situation of the whole market. For example, last year, when wealth management, funds and insurance were not good, insurance sales could go up. If the capital market turns better this year, and financial management and funds can go up, the central revenue will improve. " Yang Shujian said.
In Zhou Maohua's view, from the trend, the current economic activity is steadily improving, the financial market sentiment is gradually warming, and the demand of residents and enterprises for financial services and products is expected to gradually recover, although there are some twists and turns in this process. At the same time, the Bank has actively improved its service and distribution, and it is expected that the income from intermediary business is expected to gradually recover.
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