All business lines of securities companies are blooming
Specifically, in the first half of the year, the securities industry realized a total of 52.310 billion yuan of net income (including trading unit seat leasing), with a year-on-year increase of 17.82%; the net income of investment banking business was 25.317 billion yuan (including the net income of securities underwriting and recommendation business was 22.11 billion yuan, and the net income of financial consulting business was 3.207 billion yuan), with a year-on-year increase of 28.10%; the net income of asset management business was 14.291 billion yuan, with a year-on-year increase of 12.2% 24%; net interest income was 27.566 billion yuan, with a year-on-year increase of 20.21%; securities investment income (including changes in fair value) was 70.274 billion yuan, with a year-on-year increase of 13.24%.
From the perspective of business structure, the performance of the five traditional business sectors in the securities industry has been significantly improved in the first half of this year, especially in the investment banking business. The income from securities underwriting and recommendation business was 22.11 billion yuan, with a year-on-year increase of 49.37%; the net income of financial consulting business decreased significantly, with the income of 3.207 billion yuan falling by 35% year-on-year, mainly due to the influence of the epidemic situation, the merger and acquisition industry of listed companies Business development has been greatly affected.
In addition, since 2017, the self operating income has surpassed the income from securities trading on behalf of others, and has become the largest revenue source of the securities industry. In recent years, its proportion has been increasing, and it plays an important role in securities companies. In the first quarter of this year, the self operating income of securities companies decreased by 40% year-on-year, but in the second quarter, with the improvement of the market, the self operating income increased significantly. The securities investment income (including fair value change) of 70.274 billion yuan increased by 13.24% year-on-year, which directly laid a good tone for the performance of securities companies in the first half of the year.
The year-on-year performance of securities companies asset management has continued to improve, or has gone out of the dark moment. In the first half of the year, the industry achieved a net asset management income of 14.291 billion yuan, with a year-on-year increase of 12.24%. At the end of the second quarter, the total principal amount of entrusted funds of the whole industry was 11.83 trillion yuan, and the scale has shrunk by about 460 billion yuan since 2020. Compared with 15.89 trillion yuan two years ago, the overall capital management scale of securities companies has shrunk by about 4 trillion yuan.
It is also worth mentioning that by the end of the second quarter, the balance of securities industry customer transaction settlement funds (including credit transaction funds) was 1.64 trillion yuan, which increased by about 340 billion yuan this year, which means that investors sentiment tends to be optimistic. In addition, the balance of the two financing continued to increase, from 1025.075 billion yuan at the beginning of the year to 1163768 billion yuan, an increase of 138693 billion yuan. In terms of brokerage business, the agency sales income of 52.31 billion yuan (including seat leasing) increased by 17.82% year-on-year, and the net interest income of 27.566 billion yuan increased by 20% year-on-year.
Since July, a number of securities companies have disclosed the performance of the first half of the year. Up to now, at least 13 securities companies have disclosed their performance in the first half of the year. All of them have achieved a year-on-year increase in net profit (attributable to the parent company), and more than half of the securities companies (7 companies) have increased their net profit by more than 50%.
On the evening of the 24th, Soochow securities (9.790, - 0.82, - 7.73%) and Zheshang securities (15.690, - 1.54, - 8.94%) both released performance express reports. The formers net profit attributable to the parent was 1.031 billion yuan, up 37.33% year-on-year; the latter, 658 million yuan, a year-on-year increase of 36.61%. Soochow Securities said the growth in the first half of the year was due to the better growth of brokerage business, investment banking business and proprietary business; the income of investment banking business and self operated investment business of Zheshang securities increased significantly year on year.
Among the current securities companies that disclose their performance, Yingda securities has the largest increase in net profit by about 165%, but this is related to its lower base. First venture (10.010, - 0.74, - 6.88%) announced that it made a profit of 397 million yuan u2013 439 million yuan in the first half of the year, with a year-on-year increase of 90% - 110%, which may be another securities company with a net profit increase of more than 100%.
However, there are also some bond business performance is also affected by some, a very common drag factor is the provision of asset impairment. For example, Guohai Securities (5.510, - 0.46, - 7.71%) has accumulated 188 million yuan of various assets impairment reserves in the first half of the year, reducing the companys current net profit by 140 million yuan, mainly due to the impairment of financial assets for resale, and equity pledge type repo trading business is still the invisible killer of securities companies performance; Northeast Securities (10.590, - 0.95, -23%) in the first half of the year, the revenue decreased year on year, mainly due to the decrease of the spot business income and investment banking business income of the futures subsidiary. At the same time, the securities company suffered a total of 77.9965 million yuan of credit assets impairment loss in the first half of the year, which also affected the performance to a certain extent.
This article is from Guo Chenqi, editor in charge of securities companies in China_ NBJ9931