Net profit increased 12 times! Societe Generale report card is coming, wealth management transformation is now effective

Original title: Net Profit Increased 12 Times! Societe Generale transcripts are here, wealth management transformation is now effective, and big institutions do more business

Industrial valuesLaunched the 2019 annual report, the net profit increased 12 times!

On the afternoon of April 24,Industrial valuesLaunched the 2019 annual report, the company achieved operating income of 14.25 billion yuan throughout the year, an increase of 119.24% year-on-year; the net profit attributable to the parent company was 1,765 billion yuan, a year-on-year increase of 1202.23%.

Usually,Industrial valuesThe 2019 performance features several highlights:

First, the effectiveness of the wealth management transformation has been prominent, the customer base has been constantly strengthened, and the performance of product consignment sales has been outstanding.

Secondly, there are new advances in the stable business field of large institutions, especially the scale and participation of the custody and subcontracting business continues to maintain a strong growth momentum; the investmentBankThe business actively restructures new models, takes advantage of market opportunities and makes new advances in fields of innovation such as science and technology councils and structured finance; Securities research strength and business revenue continue to stabilize at the top echelon of the industry, and actively play the role of think tank.

Third, the securities investment business actively captures market opportunities, continually optimizes the investment structure, and achieves a good return on investment overall.

Looking towards 2020, Yang Huahui, president of Industrial Securities, said in his annual report: “After two years of building the system and consolidating the foundation, the company now has the conditions to grow and strengthen and develop rapidly. At the same time, the capital market and the securities industry are developing rapidly. In the new year, the company will comprehensively promote the empowerment of fintech in the new year, build a two-wheel central business system of wealth management business and Large institution businesses with clients as the center, will implement the two-wheel drive to accelerate the construction of first-class securities and financial groups, and will play an active role. The operation of the group and the advantages of multiple license resources continue to deepen the transformation of the branches, focus on increasing the synergy of the group, continue to improve the level of financial technology, internationalization, innovation and development, and continue to enhance the endogenous power of business development. “

Investment income increased 140.42% year-on-year

At the beginning of 2018, Societe Generale clearly proposed the strategic objective of building a first-class securities financial group, and embarked on a series of transformation initiatives including group collaboration and branch transformation. Today, the company summarizes in its annual report: “The concept of integrated group development is deeply embedded in people’s hearts, the basic structure of the group’s operation and management is basically built, and the group’s collaboration system is Continuously Improving, Branch Design Expands Further, Branch Transformation Efficiency Is Shown Gradually, and Revenue Structure Is Continually Optimized. “Efficiently promotes core customer strategy and has signed strategic cooperation agreements with governments and leading companies in many places. “

Based on this, look at the various Industrial Securities trade indicators in 2019. Among the four brokerage lines, investment banking, asset management and self-investment, self-investment business revenue increased more year-over-year. According to “Investment income + income from changes in fair value – investment income from associates and joint ventures”, Xingye Securities’ self-managed investment income in 2019 was 4.095 billion yuan, an annual increase of 140.42 %. This is consistent with the overall performance of the industry in 2019.

The annual report shows that Industrial Equity Securities’ return on equity investment outperformed the index in 2019.The bond investment business actively takes advantage of stable financing opportunity and periodic fluctuations in returns, earns interest rate allocation income and income from staggered operations, while at the same time strengthening credit risk management, strictly controls the rating Credit rating of pooled bonds and investment income of Industrial Securities in 2019 The rate has increased significantly, outperforming the China bond index.

In 2019, net fee income from the industrial securities brokerage business was 1.553 billion yuan, an increase of 15.86% year-on-year; net fee income from the asset management business was 295 million yuan, an increase of 3.35% year-on-year; the investment bank’s net commission income was 744 million yuan, a year-over-year decrease of 10.99%.

The transformation of wealth management has achieved remarkable results

As one of the first brokers in the industry to explore the transformation of wealth management, Societe Generale Securities officially changed its commercial brokerage headquarters to a wealth management headquarters in late 2018, and steadily transformed into management of the wealth.

The annual report shows that in 2019, the transformation of Industrial Securities’ wealth management around individual clients has achieved remarkable results. In particular, the agency’s financial product sales and retention scale has reached a new high, and trading services, investment advisory services and asset allocation capabilities have continued to increase; The Group’s wealth management ecosystem has been established initially, and the Xingzheng Global Fund continues to maintain the industry’s first-class investment management capabilities to provide Group customers with high-quality public offering products, supply Product and channel sales promote each other, positive circulation.

Data shows that at the end of 2019, Industrial Securities’ consignment scale of consignment products exceeded 50 billion yuan, an increase of 27% from the end of the previous year. During the reporting period, the parent company achieved a net income of 199 million yuan in sales of agency financial products throughout the year, ranking sixth in the industry and further increasing its market share.

And the slightly short-term securities brokerage business in the various Industrial Securities businesses continued to improve. According to data released by the exchange, the total amount of the company’s capital fund transaction in 2019 was 5.09 trillion yuan, a year-on-year increase of 47% and a market share of 1.86%, an increase of 0.13 points percentage compared to the previous year. Throughout the year, the parent company achieved a net income (excluding seats) of RMB 786 million in brokerage transactions, an increase of 37% over the previous year.

Xingye Securities stated that the company continued to deepen branch transformation, gradually implementing national design and central regional penetration, actively building a professional marketing service system, taking full advantage of channel-to-total strategic cooperation, and promoting the increase customer scale continuum. During the reporting period, the professional capabilities of Industrial Securities investment advisory services have been significantly enhanced, collaborative development has been achieved online and offline, the service radius has been further expanded, demonstrated the effectiveness of wealth management transformation and the influence of “Xingzheng Wealth” brand has been effectively enhanced. At the same time, actively pursue business innovation, continually improve the level of customer service, and conduct the first online batch of business authorization from the Board of Science and Technology.

In addition, the scale of the asset management business continued to grow, growing from 25% in 2019 to around 450 billion. At the end of December 2019, the total size of Xingzheng Global Fund Asset Management, a subsidiary of the Group, was 379 billion yuan, an increase of 46% since the beginning of the year. Among them, the size of public funds was 307.2 billion yuan, an increase of 64% since the beginning of the year. Continue to maintain the industry’s first-class investment management capabilities, and the overall return on investment over the five-year period remains the industry leader.

Great commercial advances in large institutions

The business of large institutions is another core business of Industrial Securities’ double traction strategy. There are also highlights in terms of comprehensive services for institutional clients:

1. Large investment banks have streamlined their business management structure and transformed their development concepts. The equity financing business has achieved restorative growth, the science and technology board business has seized opportunities to achieve progress, and the number of project reserves has increased significantly;

2. Innovative development of structured finance and bond businesses, with the number of subscriptions and the number of companies ranked among the top in the industry;

3)Xingzheng InternationalContinuously optimize the revenue structure and leverage synergy for rapid growth in the overseas financing business;

4. The income generation and reputation level of the securities research business continues to be stable at the top echelon of the industry, playing a greater role in internal collaboration and the construction of study centers;

5. The asset custody and outsourcing services business continued to maintain strong growth momentum, with the number of new hires ranking fourth in the industry.

In the field of research services, the strength of research and institutional service capabilities of Industrial Securities are stable at the top echelon of the industry. During the reporting period, the number of institutional clients continued to grow and the institutional service radius continued to expand. According to statistics from the China Securities Association, the company’s market share in commission income in 2019 will continue to maintain a relatively high level, ranking sixth in the industry in the six months. At the same time, efforts are being made to promote the construction of think tanks, to deepen the Group’s strategic coordination and to actively promote the transformation of supplier research into comprehensive research, and the continuous transformation of research advantages into commercial advantages and economic benefits.

In the field of custody services and asset outsourcing, Industrial Securities takes full advantage of the institutional services chain, deeply cultivates the custody market of private equity investment funds, strengthens the traction capabilities of empowerment Technology and continuously optimizes the administrator service platform, investor service platform and product life cycle management. Key platform functions have been developed and overall business competitiveness has made significant progress. At the end of 2019, the company’s asset custody and outsourcing services business continued to exceed 170 billion, 95% more year-over-year.

InvestmentBankBusiness: In the field of capital financing business, according to statistical data, the company completed the main subscription of two IPO projects and six orders of refinancing projects in 2019, with a leading subscription amount of 7.7 billion yuan. The project pool is constantly enriched, and the number of projects at the end of 2019 has reached 23, laying a solid foundation for the next stage of development. It is worth mentioning that during the reporting period, the company served as a sponsor and primary subscriber.FuguangTo achieve the first batch of science and technology board on the list. In 2019, Lihe Science and Technology under Shenzhen SASAC andGenesis StarThe restructuring project is of great importance to promote the development of technological innovation, accelerate the incubation of solid technology and deepen comprehensive experiments in the reform of state-owned companies.

In the bond finance business area, Industrial Securities said the company adheres to the zero-default risk bottom line, focuses on developing high-quality clients, and actively takes advantage of opportunities in emerging markets to develop various innovative businesses. During the period under review, Industrial Securities achieved national developmentBankIn 2019, the RMB Financial Bond Underwriting Market Creation Group membership made further breakthroughs in the bond underwriting business. According to data from the Shanghai and Shenzhen Stock Exchanges, the company’s local debt business ranked among the top ten in the industry during the reporting period.

During the reporting period, Societe Generale completed the first green ABS distributed for the credit lease of distributed domestic PV power generation equipment across the market, which was promoted as a typical case by CSI Collaboration; The business model has been vigorously promoted by the State Intellectual Property Office. According to statistics, in 2019 Industrial Securities completed the subscription of 10 corporate bonds and 92 corporate bonds, with a total subscription amount of 63.6 billion yuan.

In the field of small and medium-sized finance companies, during the reporting period, Valores Industriales insisted on incubating and growing innovative and growing small and medium-sized companies. According to Oriental Choice statistics, in 2019, the company added four new listed companies, and the number of shares issued in the year was 291 million yuan.

(Source: China Brokerage)

(Editor in charge: DF353)