CICC Profit Jumps 70% on Investment Banking and Asset Management

What’s new: China International Capital Corp., the country’s leading investment bank, reported 70% growth in net profits last year to 7.2 billion yuan ($1.1 billion), mainly driven by robust growth in assset management and investment banking.

Revenue rose 42.2% to 32.4 billion yuan, CICC said in its latest financial report.

Revenue from CICC’s core investment banking business rose 55.6% to 5.6 billion yuan in 2020. The company’s asset management business segment posted the fastest growth of 106% year-on-year to 1.2 billion yuan.

More to know: CICC in 2020 completed 32 initial public offering deals as the main underwriter, involving a total of 62.4 billion yuan, the second-most only after Citic Securities.

The company managed 512.9 billion yuan of assets as of the end of 2020, up 72% from a year ago.

Huang Zhaohui, CEO of CICC, said the company will push forward business digitalization and internationalization to further boost growth, while betting on more business opportunities as direct financing becomes an increasingly important funding option for Chinese companies.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com).

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