The performance of the five traditional sectors all achieved positive growth year on year, of which the investment banks revenue increased the largest, with the net income of RMB 25.317 billion increased by nearly 30% on a year-on-year basis. However, it was mainly due to the contribution of underwriting and recommendation business, which recorded 22.11 billion yuan of revenue, a year-on-year increase of 49.37%; the financial advisory business was greatly affected by the epidemic, with an income of 3.207 billion yuan, a year-on-year decrease of 35.37%. In the first half of the year, the self operating income of 70.274 billion yuan, a year-on-year increase of 13%.
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%.
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.
More than half of securities companies net profit increased by more than 50% in the first half of the 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%.
In the first half of this year, the Shenzhen composite index, gem index and small and medium-sized board index all rose significantly, trading was very active, and the self operating performance and brokerage business income of many companies increased significantly; at the same time, driven by the favorable reform of multiple capital markets, the investment banking business income of securities companies was relatively rich, with IPO income doubling year-on-year. From the industry data disclosed by the Securities Industry Association, it can be predicted that the performance of the securities industry in the first half of the year is generally good.
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.
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