CMB's wealth management sees steady growth
China Merchants Bank demonstrated resilience and growth in wealth management despite economic challenges from a beleaguered real estate sector
Zhifen Zheng, chief wealth advisor of CMB, said that the bank had crossed the RMB 1 trillion ($150 billion) barrier in mutual fund assets under management, driven by strong distribution capabilities in investment and protection products. She said: “Our focus has always been delivering value to customers through strategic asset diversification and allocation, which has been beneficial in the current economic climate.”
CMB’s wealth management business sees steady growth, with net operating income at RMB 260 billion ($39 billion), despite a 1.74% year-on-year decrease. Net profit grew by 6.52% to RMB 113 billion ($17 billion) in 2023.
The bank’s success hinges on its customer-centric Wind Chime system, ensuring offerings remain relevant in the volatile market. Zheng noted: “Wind Chime is more than a tool; it helps us stay ahead, exceeding customer expectations.”
CMB’s wealth management aligns with the government-mandated pension management scheme, addressing both national financial objectives, alongside individual client needs by leveraging the bank’s strengths in asset diversification and allocation. Zheng commented: “This enables us to offer tailored solutions aligned with the clients’ long-term financial goals.”
The bank’s focus on supporting the consumption needs of individuals and working capital requirements of micro, small, and medium-sized enterprises (MSMEs) strengthens client relationships while simultaneously growing revenue and profitability. Zheng asserted: “In these challenging times, our priority is to be a reliable partner for individuals seeking to manage their wealth, or MSMEs looking for support in their business ventures.”