Agricultural Bank of China issued 149 structured products in the first half of 2017 (1H17) worth an estimated RMB19bn (US$2.9bn) compared to 268 products with a sales volume of RMB117bn in the same period last year, according to SRP data. Eighty-two of the bank's products during the first semester of 2017 were linked to commodities, including 80 products linked to gold and two linked to white sugar while the remaining 67 products were linked to the CSI 300 Index.

The group reported that net profit for 1H17 totaled RMB108bn, up from RMB105bn in 1H16, indicating an increase of 3.4%. There was a positive change in the bank's net interest income which increased by 6.2% year-on-year, from RMB199bn to RMB211.3bn. On the other hand, net fee and commission income was down 16.9%, from RMB51bn to RMB42.5bn.

Earnings per share, at RMB0.33 per share, remained stable compared to the same period last year. Return on average assets fell down from 1.15% for 1H16 to 1.08% for 1H17. Return on average equity decreased by 0.89% year-on-year, from 17.83% to 16.74%.

The bank's wealth management and private banking business reported growth in the first six months of 2017. Assets under management (AUM) totaled RMB924.3bn for 1H17, an increase of 13.9% from RMB811.5bn in 1H16. The balance of Agricultural Bank's wealth management products experienced a slight decrease of 7.8%, from RMB1.63trn to RMB1.5trn.

Ping An Group distributed 35 structured products in 1H17 worth an estimated RMB5.5bn via Shenzen Ping An Bank (1H16: 297/RMB98bn). Of these, 16 products were linked to the Libor rate. The bank also distributed three products linked to managed funds including two linked to the Axa IM FIIS Europe Short Duration High Yield Fund.

Ping An reported a net profit of RMB43.4bn, up 6.5% year-on-year from RMB40.7bn in 1H16. The group's revenue grew by 23%, from RMB407bn for 1H16 to RMB503bn for 1H17. Total assets went up to RMB5.9trn, an increase of 7.2% since the end of 2016. Retail customers' AUM rose 19.2% YTD to RMB950bn, while personal deposits and retail loans grew by 16% and 21.5%, respectively, according to the bank.

Lufax Holding, a Ping An subsidiary, an online internet marketplace which specialises in peer-to-peer lending, reported an increase of 65% year-on-year in the trading volume of wealth management in the period, while institutional trading volume grew by 45.4% on the year.

China Merchants Bank issued no products in the first half year of 2017, according to SRP data. During the same period last year, the group issued 25 structured products worth RMB2.3bn.

The group reported increasing earnings for the first six months of 2017. Its net profit rose 11.4% to RMB39.3bn while net operating income decreased slightly by 0.32% year-on-year to RMB113bn.

The group reported that total assets increased 4.33% to RMB6.2trn compared to the end of 2016. Total liabilities amounted to RMB5.7trn, representing an increase of 4.31% as compared with that at the end of the previous year. The company issued 2,202 wealth management products during the first half of the year and recorded RMB7.47tr in the bank-wide sales of wealth management products, representing a year-on-year decrease of 3.74%. Fees and commission income from retail wealth management business for 1H17 was RMB11.115bn, representing a decrease of 18.80% as compared to 1H16, according to the bank.

As of June 30, 2017, the notional amount for derivative financial instruments stood at RMB2,600bn of which RMB1,127bn was outstanding for interest rate derivatives.

Industrial and Commercial Bank of China issued no products during the first six months of 2017, according to SRP data. In 1H16, the group issued three products worth RMB9bn.

ICBC reported a net profit ofRMB153bn for the first half of 2017, up 2% on the year. The group's operating income was up 3.24% year-on-year, from RMB328bn to RMB336bn. Operating expenses, on the other hand, decreased by 11% to RMB80.2bn. The annual increase in net interest income was 6.3%, from RMB234bn to RMB25bn. Net fee and commission income decreased by 6% to RMB76bn.

The group reported a 4% year-on-year increase in total assets, from RMB24.1trn to RMB25.5trn. The group's cash flow hedges (interest rate swap contracts, currency swap contracts, currency forward contracts and equity derivatives) with a remaining life of over one year but within five years stood at RMB19bn as of June 30, 2017.

ICBC's wealth management business was valued at RMB2.7trn and assets under custody surpassed RMB14.5trn, both leading the market. Equity instruments and others stood at RMB411.4bn, increased by RMB126bn or 44.5% compared to the end of last year, 'mainly due to the increase of principal-guaranteed wealth management products issued by ICBC,' according to the bank.

Click the link to view the full 1H17 results for Agricultural Bank of China, Ping An, China Merchants Bank and ICBC.

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