More information on the Private Banking and Wealth Management survey
Wealth management will be a battleground for banks over the next few years, and remains one of the few business areas likely to generate strong growth. The results of our annual private banking survey are now live. See who the winners and losers are.
UBS holds on to top spot but competition heats up in wealth management industry
UBS, the Swiss-based global financial institution, remains the bank to beat in global wealth management. It secured first place in the global rankings for the sixth consecutive year in Euromoney’s benchmark survey for the private banking industry, which is published today.
HSBC has emerged as UBS’s closest challenger, rising to second place overall in the global rankings but securing the top spot in Asia and the Middle East, the regions expected to offer the greatest growth potential over the next few years, in addition to becoming the best global private bank for the super-affluent.
Banking groups that have been worst hit by the impact of the credit crunch have generally seen their wealth management franchises suffer in turn; those that have survived relatively unscathed have seen their private banks pick up business. For example Citi, the beleaguered US-based bank which recently split itself into core and non-core businesses, falls from second to third place overall and saw $17 billion of outflows from its wealth assets under management in Q4 2008 alone; French-based BNP Paribas, one of the few global banks to post a profit for FY 2008, jumped from ninth to sixth place overall and recorded inflows of around €10 billion over the past 12 months.
That UBS remains first-placed in the overall rankings, as well as a majority of global sub-categories, shows the incredible strength of its franchise in wealth management. The bank has already written off close to $50 billion in assets as a result of the credit crunch, and transferred $60 billion of impaired securities to a fund run by the Swiss central bank. It also recorded outflows of around SFr45 billion from its wealth business in Q2 and Q3 of 2008. Outflows for 2009 are expected by analysts to be around SFr 80 billion.
In an exclusive interview with Euromoney Marcel Rohner, chief executive of UBS*, outlines his strategy to stem the outflows and keep UBS at the summit of private banking. "Clearly it is true that as a wealth manager, an investment bank and an asset manager, the results that we have produced have undermined our reputation," Rohner said. "But we are fighting as hard as we can to win back every client we have lost. We are convinced that the measures we have taken will bring assets back to UBS."
Turbulent times in global financial markets provide a once-in-a-generation opportunity for banks to grow market share in a traditionally slow-moving business. "2009 will be a time for firms in the fortunate position of being stable or profitable to increase their market share in private banking globally," said Euromoney in its review of the results.
It also provides an opportunity for local private banks around the world to beat the major international players in the fight to win mandates from rich individuals in their countries, a trend which is already evident in the 2009 rankings.
Wealth management will be a battleground for banks around the world over the next few years, and remains one of the few business areas likely to generate strong growth. "Private banking is a good business to be in. Global wealth may be falling as all asset classes suffer in the economic and financial crisis, but the world’s wealthy need advice – now more than ever – and are prepared to pay for good counsel and good management," said Euromoney’s editor Clive Horwood.
Full sets of results – including the best private banks in over 60 countries across the globe – are revealed here. Subscribers can also read the full transcript of the exclusive Rohner interview, as well as interviews with heads of private banking at most of the leading global firms.
ABOUT THE EUROMONEY PRIVATE BANKING SURVEY
Euromoney’s annual private banking survey is the definitive guide to global wealth management industry. First published in 2004, it provides an unrivalled insight into which banks are best for both advice and portfolio management across a vast range of asset classes and investment styles.
For more information about the survey, please contact Tim Moxon, head of research at Euromoney, at tmoxon@euromoney.com or +44 207 779 8694.
To subscribe to Euromoney please call or email our hotline, at customerservices@euromoneyplc.com or +44 (0)20 7779 8999 (UK) and +1 212 224 3570 (US).
Private Banking and Wealth Management Survey results index
Subscribe now to see this year's winners
Full global results include:
Best private banking services overall I Net-worth-specific private banking services I Relationship management and privacy, security I Range of advisory services I Range of investment products I Islamic banking services I Family office services I Private equity investment by private banks I Managed futures by private banks I Hedge fund investment by private banks I Foreign exchange investment by private banks I Structured products investment by private banks I Fixed income portfolio management by private banks I Equity portfolio management by private banks I Corporate advisory for private banking clients I Philanthropy services I Inheritance and succession planning I Real estate investment by private banks I Art banking by private banks I Precious metals investment by private banks I Luxury investment by private banks I Ethical investments I Tax services and guidance I Trust services I Specialized services for entrepreneurs, corporate executives, inherited wealth and business I Offshore private banking services