Chinese banking industry' wealth management business scale is expected to rise to 80 trillion yuan to 120 trillion yuan in the next five to ten years, and it would bring banks' intermediary business income to 80 trillion yuan to 120 trillion yuan and contribute 40 percent of banks' profits, said Ma Xutian, president of the asset management business center at the Bank of Communications.
Ma pointed out China's banking industry development largely depended on expanding balance sheet in the past three decades, which came with the high-speed economic growth in the country. However, with China's economic growth slowing down, the traditional development mode is not sustainable anymore, Ma said.
In fact, banks' performance has been slipping in the past few years. Many banks saw single digit growth last year and some of them even showed zero growth.
Ma said both scale and profit of wealth management business presented over 40 percent growth last year and it is expected to offset slowdown of traditional banking business.
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