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mega players dominate global wealth scene

According to the Scorpio Partnership Private Banking Benchmark, which tracks the fortunes of more than 200 financial institutions, wealth managers increased their assets under management (AUM) by an average of 8.7% in 2012, owing to a rebound in net new money and strong market performance.

However, the 20 largest operators – what Scorpio Partnership terms “the mega-wealth managers” – boosted their assets by almost 11%. This group now collectively runs more than three-quarters of global wealth manager AUM, and Scorpio Partnership forecasts that its dominance will continue.

‘Champions league’

“The evolution of the top 20 wealth managers over the past five years [has] become marked in the separation of this pack with the rest of the market – so much so that there now appears to be an emergence of a ‘champions league’ of firms that through the factor of their scale and market coverage are more likely to attract business,” the report says.

Leading the private banking AUM list is Switzerland’s UBS, which reclaimed the number-one position from Bank of America, thanks to its higher growth rate (see table below). Geneva-based Pictet also leap-frogged a US rival, taking tenth-spot from JP Morgan, with an AUM increase of more than 20%.

However, the biggest expansion came from Santander, which returned to the top 20 for the first time since 2010. The firm’s 66.2% AUM increase was primarily driven by its decision to acquire the remaining share capital of Banesto and Banif, and absorb both banks into the Santander group.

Top 20 global private banks by assets under management
Ranking Institution AUM ($bn) Growth 2012 Reporting currency Ranking move
1 UBS  1,705.0  9.7%  CHF  +1
2 Bank of America  1,673.5  5.9%  USD  -1
3 Wells Fargo  1,400.0  7.7%  USD  –
4 Morgan Stanley  1,308.0  7.3%  USD  –
5 Credit Suisse  854.6  6.9%  CHF  –
6 Royal Bank of Canada  628.5  9.6%  CAD  –
7 HSBC  398.0  5.6%  USD  –
8 Deutsche Bank  387.3  11.1%  EUR  –
9 BNP Paribas  346.9  9.7%  EUR  –
10 Pictet  322.2  22.9%  CHF  +1
11 JP Morgan  318.0  9.3%  USD  -1
12 Citi Private Bank  250.0  20.2%  USD  +1
13 Goldman Sachs  240.0  5.7%  USD  -1
14 ABN AMRO  212.7  12.0%  EUR  –
15 Barclays  201.4  10.3%  GBP  –
16 Julius Bär  200.8  12.3%  CHF  –
17 Northern Trust  197.7  13.8%  USD  –
18 BNY Mellon  179.0  6.6%  USD  
19 Lombard Odier  175.5  16.0%  CHF  +1
20 Santander  172.7  66.2%  USD  +3
 Source: Scorpio Partnership Private Banking Benchmark 2013

 

tom@ybc.tv

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