CICC released its quarterly report: Investment income surged, while investment banking revenue remains "weak"

On the evening of April 28, CICC disclosed its first-quarter report!

According to the data, this well-known brokerage firm reported a revenue of 5.721 billion yuan for the first quarter of 2025, a year-on-year increase of 47.69%; net profit was 2.042 billion yuan, a year-on-year increase of 64.85%.

Regarding the increase in operating income, CICC pointed out that it was due to the net income generated from financial instrument investments and the increase in net commission and fee income.

Brokerage Business Up 50% Year-on-Year

According to the first-quarter report, CICC's latest net commission income from brokerage business increased by over 56% year-on-year, rising from 831 million yuan in the same period last year to 1.298 billion yuan now.

In the first quarter, the net commission income from asset management business was 308 million yuan, with a year-on-year increase of 15.22%.

In contrast, CICC's investment banking business remains "weak," showing a year-on-year decline of 10 percentage points.

Investment Income is the Highlight

CICC's first-quarter report disclosed: The investment income and changes in fair value for this reporting period amounted to 3.407 billion yuan, compared to 1.847 billion yuan in the same period last year, with a year-on-year increase of 84.44%, mainly due to the increase in net income generated from financial instruments measured at fair value.

The brokerage's balance sheet shows: As of the end of the first quarter, the scale of the company's trading financial assets reached 285.434 billion yuan.

Derivatives "Play Drift"

Zhi Shi Tang noted: CICC's foreign exchange gains in the first quarter decreased by 56% year-on-year.

The first-quarter report explained that the gains and losses from foreign exchange derivative transactions conducted to hedge foreign currency exposure fluctuated due to exchange rate volatility.

Generally speaking: Companies use foreign exchange derivatives to hedge against exchange rate risks, such as futures and options.

To some extent, this means that CICC conducted some foreign exchange derivative transactions to protect its assets from the impact of foreign exchange rate fluctuations, but overseas operations "have regressed somewhat" in the first quarter of this year.

Employee Costs Quietly Increase

One detail worth noting: CICC's business and management expenses increased by 37% year-on-year in the first quarter, with the reason disclosed as: The group's operating performance has improved compared to the same period in 2024, leading to a corresponding increase in employee costs.

Reviewing the 2024 annual report, the group's business and management expenses were 14.3 billion yuan, a decrease of 1.521 billion yuan compared to 2023, down 9.61%, mainly due to the group's operating performance declining in 2024 under macroeconomic pressure compared to 2023, resulting in a corresponding decrease in employee costs. The number of employees at the end of 2024 decreased by 677 compared to the end of 2023.

Non-operating Income Increased by 5200%

Zhi Shi Tang noted that CICC's "non-operating income" reached 32.09 million yuan in the first quarter of this year, with a year-on-year increase of nearly 5200%.

CICC explained that the increase in income is related to gains not directly associated with daily operating activities, with no further information provided.

In addition, non-operating expenses in the first quarter saw an increase of 688%, attributed to the rise in estimated liabilities for pending litigation