Many brokerages suffered from proprietary trading last year performance plummeted

2022-06-05 0 By

Last year, the a-share market was divided, and many brokerages, including Guodu Securities and Donghai Securities, had poor proprietary performance, resulting in A sharp drop in net profits.Generally speaking, securities firms will disclose investment income and fair value changes in the performance of the two indicators, investment income is has been realized (sold) self-supporting investment, including joint venture has realized dividends, etc., and fair value changes in profit and loss is mainly the floating gains and losses of trading positions.From the normal situation, the sum of the two indicators is basically the overall return of securities investment in a year.Before the holiday, Guodu Securities released an unaudited financial statement for 2021. The company’s net profit last year was about 1.28 yuan, down more than 80% from 2020.In terms of income composition, the company’s various businesses declined comprehensively, with fee and commission income dropping from 1.618 billion yuan to 212 million yuan, and net interest income also falling from 202 million yuan to 36.2069 million yuan.The biggest drag on the company’s results, however, was its proprietary business.According to the announcement, Guodu Securities’ investment income last year decreased from about 600 million yuan in 2020 to -117 million yuan, while the company’s profit and loss on fair value changes remained basically unchanged, apparently caused by the loss of self-supporting business performance.Donghai Securities recently released the announcement of 2021 unaudited financial statements, showing that the company is expected to net profit of 150 million yuan last year, a year-on-year drop of more than 50%.Look from operating income, since the operation to net profit formed a bigger drag.The announcement shows that in 2020, The East China Sea Securities investment income of 555 million yuan, the fair value change profit and loss of 472 million yuan, the sum of more than 1 billion yuan.Last year, the company’s investment income was 533 million yuan, but the fair value change profit and loss was -487 million yuan, the sum of the two is about 46 million yuan.From the above two brokerages investment benefit or fair value changes, it is possible that the loss of self-trading stocks led to the decline in performance.Compared with Guodu Securities, Donghai Securities, Zhongshan Securities is exposed to a loss.Jinlong shares disclosed that its subsidiary Zhongshan Securities in 2021 unaudited financial statements show that the net profit of Zhongshan Securities last year was 124 million yuan, while the net profit of the same period last year was 241 million yuan, turning from surplus to deficit.In addition to the slight increase in brokerage, asset management and other businesses, the fair value change income, one of the indicators of self-supporting investment income, showed a loss of 505 million yuan.In Hong Kong stock listed Shenwan Hongyuan Hong Kong is due to bond treading thunder and performance fell sharply.The company expects its unaudited consolidated profit after tax for 2021 to decline by approximately 90% year-over-year, and expected credit losses on its debt products, primarily from its institutional services and trading businesses, rose significantly in the fourth quarter.It is not difficult to see that the company should be trampling on the bonds.Some small – and medium-sized brokerages have benefited from proprietary trading.Xiangcai Securities made a net profit of about 695 million yuan last year, according to its unaudited financial report for 2021.The company’s investment income is 343 million yuan, the fair value change profit and loss is 305 million yuan, the two together is basically equal to the net profit.Reporters noted that results in the letters and forecast of the brokerage, the yuan securities, everbright securities, the Pacific securities, sealand securities, such as essence securities brokerages may release announcement, provision for assets impairment provision provision for assets impairment provision corresponding to the amount of 498 million yuan, 1.128 billion yuan, 273 million yuan, 090 million yuan and 398 million yuan,After the provision of impairment, the company’s performance pressure, net profit decreased accordingly.China Post Securities believes that the current growth support logic of the securities industry lies first in the incremental performance brought by the transformation of brokerage business to wealth management mode, and second in the incremental performance contributed by new markets bred by innovative business.From the perspective of the whole industry, the above growth support logic will provide new revenue growth points for the whole industry;For small and medium-sized brokerages, their business orientation and ability will benefit from the new blue ocean market and earn differentiated returns.Read: Sun Shijian