Asia 2018 AUM League Table

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Assets under management growth ground to a halt in 2018 as challenging market conditions tempered client activity and impeded performance for Asia’s private banks.


UBS Global Wealth Management retained the top spot on Asian Private Banker’s Top 20 League Table (excluding China onshore) despite a 6.7% decrease in the bank’s AUM. UBS GWM was well placed to cross the US$400 billion mark in Asia at the beginning of 2018 but significant deleveraging and suboptimal investments performance which hit the entire industry put the milestone out of reach. That’s despite net new money inflows of US$17.3 billion for the year in APAC, representing a 4.5% YoY increase.

Of the Top 10 banks, only four — Credit Suisse Private Banking (2), Morgan Stanley Private Wealth Management (5), Bank of Singapore (6), and J.P. Morgan Private Bank (8) — posted improved AUM totals. UBP (20) recorded the biggest increase, albeit from a lower base, while CMB Private Banking (16) and EFG Bank (18) saw the largest declines.

Interestingly, the average decrease in AUM remained consistent when accounting for geographical and business-model variables. Universal — inclusive of retail-linked — banks (-3.6%) fared similarly to pure plays (-3.7%), while Asia-headquartered banks (-3.4%) were marginally better off than their international-headquartered peers (-3.7%).

Overall, the composition of the Top 20 League Table has not changed extensively, nor have the criteria we use to assess and compile our data. That said, we have taken the unprecedented step to exclude two banks from our 2018 Top 20 League Tables: Citi and DBS. This decision reflects our commitment to increase the rigour of this data and to create a level playing field for all banks.

Both Citi and DBS intermingle private banking and non-private banking assets, and while both have sufficient private banking-specific AUM to feature in 2018’s Top 20 rankings according to our estimates, we draw the line at including data that is not ‘pure’. In Citi’s case, wealth management AUM (US$256 billion, +0% YoY) covers Consumer Banking and the Private Bank. DBS’s wealth management AUM at the end of 2018 (US$161.5 billion, +7%) includes Treasures, Treasures Private Client, and Private Bank. Therefore, neither total is directly comparable to the data presented in our Top 20.

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Asia (ex-China onshore) AUM (US$ billion)

RankBank
2018 Asia
2017 Asia
YoY % change
2014-18 CAGR
AUM incl. loans?
Minimum asset threshold*
2018 Global
1UBS Global Wealth Management   357.0382.7-6.7%+7.0%NoUSD 2m2,260.0
2Credit Suisse Private Banking   205.1202.1+1.5%+7.4%N/ACHF 2m770.0
3HSBC Private Banking   124.0129.0-3.9%+2.6%NoUSD 5m309.0
4Julius Baer   111.9115.0-2.7%+9.2%NoNo defined minimum388.6
5Morgan Stanley Private Wealth Management   105.0102.0+2.9%+10.7%YesUSD 35m2,300.0
6Bank of Singapore   102.099.0+3.0%+18.9%NoUSD 5m102.0
7BNP Paribas Wealth Management   89.497.4-8.2%+10.8%NoUSD 3m413.5
8J.P. Morgan Private Bank   87.885.0+3.3%+9.1%N/AUSD 10m552.0
9Goldman Sachs Private Wealth Management79.487.0-8.7%+12.3%NoUSD 100m650.0
10LGT   57.060.0-5.0%+26.4%NoNo defined minimum201.6
11Deutsche Bank Wealth Management   56.158.8-4.6%-NoEUR 2m
(account balance)
228.0
12Standard Chartered Private Bank   46.049.5-7.1%+0.6%N/AUSD 2-5m59.2
13Pictet Wealth Management35.035.8-2.2%+6.2%N/AUSD 3m206.4
14UOB Private Bank34.034.3-0.9%-YesSGD 5m34.0
15Hang Seng Private Banking30.231.3-3.5%+8.2%N/AHKD 10m30.2
16CMB Private Banking   29.936.7-18.5%-N/ARMB 10m296.5
17Bank of China (Hong Kong) Private Banking27.330.0-9.0%-N/AUSD 2m27.3
18EFG Bank   18.721.1-11.4%-2.9%YesEUR 1m133.4
19J. Safra Sarasin Bank   17.819.2-7.3%+4.4%N/AEUR 1m167.4
20UBP   15.314.3+7.0%-N/AUSD 1m97.2
Top 201,628.81,690.2-3.6%9,226.3
21CIMB Private Banking14.111.621.6%12.5%YesSGD 2m14.1
22Indosuez Wealth Management   14.015.0-6.7%-N/AUSD 1m128.4
23Maybank Private12.59.926.3%25.7%YesUSD 1m
(account balance)
12.5

All figures are APB estimates unless otherwise stated. Individual bank footnotes available on ⓘ mouse hover.

Notes:
Mid-market spot rates used as at 31 Dec for their respective years for non-USD reporting. For 2018: CHFUSD 1.0169; SGDUSD 0.7340; EURUSD 1.1455; CNYUSD 0.1454
N/A: not available
* Minimum represents investable assets per client (unless otherwise stated) and equivalent in other currencies; minimum may change depending on location

Omissions** (US$ billion)

Bank2018 Asia2017 AsiaYoY % change2014-18 CAGRAUM incl. loans?Minimum asset threshold*2018 Global

Citi
(Citi Private Bank and Consumer Banking)

256.0256.00.0%0.1%N/A

- Priority: HKD 500K
- Citigold: HKD 1.5m
- Citigold: Private Client HKD 8m
- Citi PB: USD 25m
(all account balance)

460.0***

DBS Wealth Management
(DBS Treasures, DBS Treasures Private Client, DBS Private Bank)

161.5150.97.0%-N/A

- DBS Treasures: SGD 350K or HKD 1m
- DBS: Treasures Private Client SGD 1.5m or HKD 8m
- DBS PB: SGD 5m or HKD 25m
(all account balance)

161.5

Notes:
* Minimum represents investable assets per client (unless otherwise stated) and equivalent in other currencies; minimum may change depending on location
** Exclusion of Citi from the League Table is due to reported figures being an aggregate of Citi’s APAC consumer banking and private banking businesses; Exclusion of DBS from the League Table is due to reported figures being an aggregate of DBS Treasures, DBS Treasures Private Client, and DBS Private Bank businesses
*** Citi Private Bank only; Global AUM: publicly reported



Notes:
ABN AMRO’s Asia and Middle East wealth businesses acquired by LGT in Dec 2016. Acquisition completed in May 2017.
Barclays’ wealth and investment businesses in Hong Kong and Singapore acquired by Bank of Singapore (OCBC) in Apr 2016. Acquisition completed in Nov 2016.
Coutts International acquired by UBP in Mar 2015. Acquisition of Hong Kong and Singapore businesses completed in Apr 2016.

Revenue breakdown

Meanwhile, the return of volatility after a remarkably calm 2017, a further breakdown in the correlation between stocks and bonds, and the US-China trade dispute conspired to exert pressure on private banks’ top lines.

Banks entered the new year on the front foot, generally urging clients to stay invested and hedge amid bouts of volatility, and while their advice did not fall on totally deaf ears, clients exercised extreme caution by reining in trading activity, deleveraging, and upping cash holdings which sustained throughout the year. Meanwhile, flows into alternative asset classes picked up but not dramatically.

The impact on private banks’ top lines was pronounced. Asian Private Banker estimates that some 54% of banks in the Top 20 saw a YoY decline in transaction-based revenues with 18% recording a decrease of 20% or more. Conversely, net interest income was generally up as were recurring revenues — 88% of Asia’s Top 20 private banks posted a YoY uptick in recurring revenues driven by fees and commissions — although these increases were generally insufficient to buffer the decline in transactional revenue.

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