Malaysian private banking and wealth management AUM exceeds US$90bn

While Malaysian private banks reported dampened top and bottom lines due to challenged Southeast Asian economic growth amid geopolitical tensions, tighter monetary policies, and slower global trade, the total AUM of the top ten players in the region rose 13% to US$96 billion.

According to APB Insights’ 2023 Malaysia Private Banking & Wealth Management AUM League Tables, private banks saw an average 14% increase in AUM.

Private banks attributed the growth to a pick-up in hiring, expansion of the client base, strong performance, and the introduction of Islamic wealth management services.

Benefiting from these trends, UOB’s AUM grew 16%, or US$2 billion, to US$16 billion, ranking second in the table, while Hong Leong Bank’s AUM grew 26%, or US$3 billion, to US$15 billion, making it the third-largest in the table. As for private banks that started with lower bases, most of them achieved double-digit growth in their AUM figures.

Islamic wealth management

With Malaysia being one of the markets leading the development of Islamic banking, private banks in the country have been launching and enhancing their Islamic wealth management services.

For example, in the past year, RHB Bank launched an Islamic wealth management portal, allowing relationship managers to advise on topics ranging from Islamic wealth creation and accumulation to wealth distribution and purification.

Despite not disclosing any updates regarding its Islamic wealth management initiatives, Public Bank revealed that 47% of its wealth AUM is attributed to its Islamic business.

Clientele expansion

A handful of Malaysian banks reported growth in their client base, including Hong Leong Bank, which saw a 7% increase. When acquiring new customers, private banks tend to explore new segments and demographics and form external partnerships.

Affin Bank and RHB Bank have been targeting affluent individuals. They are establishing new channels to scale up the segment and implementing personalisation to offer tailored solutions, respectively. Kenanga Investment Bank collaborated with Ant Group and has been targeting sophisticated investors, UHNWIs, and institutional investors.

Differing from the aforementioned strategies, AmBank collaborated with different business units within the bigger AmBank Group to facilitate referrals within different divisions.

Unfavourable macro environments

Triggered by the US Federal Reserve’s delay in raising interest rates and the weaker-than-expected Chinese economic recovery, the Malaysian Ringgit depreciated 4.1% in 2023, making it the second-worst performing currency after the Japanese yen.

As a result, while all banks reported positive growth in their AUM figures in ringgit terms, some were pushed into the negative zone when translated into US dollar terms.

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More	Rank			Bank	Bank type	2023 AUM (USD B)	2022 AUM (USD B)	YoY % Change	Min Asset Threshold (USD)
				Public Bank	Wealth management	21.12	20.32	3.94%	N/A
	While the bank’s wealth management AUM rose 4% in dollar terms, Public Bank’s AUM in the segment grew almost 6% in terms of Malaysian Ringgit. The bank owed the increase to a 16% rise in the net asset value of foreign equity funds and a rebound in certain global and regional equity markets. Fifty-three percent of the bank’s wealth AUM comes from conventional wealth management, while the rest is attributed to Islamic wealth management. Looking forward, the bank plans to develop unit trust funds and promote insurance plans that provide both health and wealth protection. *Note: AUM: publicly reported Carene Khoo director, wealth management and transaction banking
				UOB	Wealth management	16.13	13.92	15.90%	75K
	By capturing the wealth potential of the rising middle class, UOB reported its wealth management franchise to be one of the key growth drivers of its group retail business in 2023, with wealth management AUM for the entire group increasing 14% in Singaporean dollar terms. However, the bank noticed a slower pickup in wealth income due to cautious appetite and high interest rates. In 2023, the bank also fully digitalised the wealth management product value chain and completed the acquisition of Citi’s consumer banking business in Indonesia, Malaysia, Thailand, and Vietnam. *Note: AUM: APB estimate Chew Mun Yew head of private wealth of UOB
				Hong Leong Bank	Wealth management	14.68	11.65	26.00%	72K
	Hong Leong Bank has been growing its regional wealth management segment’s AUM by double digits for two consecutive years. The bank owes its 2023 AUM growth to strong customer engagement, which led to a 7% increase in its client base. Alongside AUM growth, the segment also recorded flows into fixed income and negotiable instruments of deposits. In the past year, the bank has also been shifting conversations with clients towards investment needs from solely product discussions. Profit before tax for the regional wealth management unit grew 22% YoY. *Note: AUM: APB estimate Hoo See Kheng executive director, CEO
				CIMB Private Banking Malaysia	Private banking	14.01	12.62	11.00%	N/A
	In 2023, Malaysia continued to be CIMB Group’s biggest profit contributor at 60%. The bank hopes to further expand the consumer, wealth, private banking and SME segments in the region. On a group level, private banking recorded a 19% YoY jump in net new money and reported substantial growth in new-to-bank clients. The bank owed the above achievements to regionalisation efforts of key business functions and operations. *Note: AUM: APB estimate Jefferi Hashim head of private banking, ESG advisory, and solutions of group wholesale banking
				RHB Bank	Wealth management	13.51	11.79	14.59%	48K
	In 2023, RHB Bank transformed its wealth proposition from a product-centric approach to advisory and needs-driven selling. The bank attributed its AUM growth to employing segment-specific solutions and strategies, data analytics, and digitalisation. As for the bank’s mass affluent segment, it has been expanding its current customer base and implementing tailored solutions. The bank also launched an Islamic Wealth Management portal on which advisors can provide advice on Islamic wealth creation and accumulation, protection, distribution and purification. *Note: AUM: publicly reported Mohd Rashid Mohamad CEO of RHB Bank
				Maybank	Private banking	4.95	4.02	23.20%	1M
	In 2023, Maybank established an Islamic wealth management hub in Singapore to provide onshore and offshore wealth management solutions for premier and private bank customers in Malaysia, Singapore, and Indonesia. The bank’s Islamic wealth AUM on a group level stood at MYR 71.1 billion in 2023. The bank has been focusing on innovative solutions that cover customers’ life journeys. The bank plans to expand beyond its current core markets of Singapore and Malaysia and hire another 15 to 20 relationship managers over the course of 2024. *Note: AUM: APB estimate Syed Ahmad Taufik Albar group CEO, community financial services
				Kenanga Investment Bank	Wealth management	4.72	4.44	6.31%	N/A
	In the past year, Kenanga Investment Bank collaborated with Ant Group to develop a wealth super app. It also noticed an increase in management and performance fee income in its asset and wealth management division thanks to its widening customer base. To expand its clientele, the bank has been targeting mass retail, sophisticated investors, UHNWIs and corporate institutional investors through multi-segmental products and services. The bank’s asset and wealth management profit before tax rose 8% YoY in 2023. *Note: AUM: publicly reported Ismitz Matthew De Alwis ceo of Kenanga Investment Bank
				Affin Bank	Private banking	4.46	3.40	31.18%	45K
	Despite the 31% YoY growth in AUM, the bank reported that unfavourable market conditions have dampened wealth management revenue. In 2023, Affin Bank launched several digital platforms and services to address customer needs, including INVIKTA for high net worth clients and AVANCE for financial and wealth planning for young professionals. Looking forward, the bank hopes to grow its affluent customer base and establish a new specialist channel for wealth management to scale up the segment. *Note: AUM: publicly reported Calvin Goon head of wealth management
				AmBank	Private banking	2.36	2.40	-1.67%	N/A
	Despite dipping nearly 1.7% in AUM in dollar terms, AmBank’s private banking business achieved an AUM record high with a 2.24% growth in terms of Malaysian Ringgit, thanks to referrals from collaboration between different business units within the AmBank Group and the expansion of client manager teams. The private bank has also been widening its product coverage by including various structured investment ideas to better suit the needs of customers, and tapping into next-gen clients to capture AUM. The entire banking group's total profit for 2023 was MYR 1,676.3 million, a 5% increase from 2022. *Note: AUM: publicly reported Tracy Chen Wee Keng CEO, AmInvestment Bank Berhad
				Total		95.94	84.56	13.46%

Methodology

Some banks publicly state their regional AUM totals, others don’t. Therefore, the datasets presented here contain a mix of estimates, shared, and reported figures. We also recognise that banks are inconsistent in the way they count AUM. And their minimum investment requirements can range widely, starting from as little as US$45,000 and going up to as high as US$1 million.

Totals may include assets under custody and/or loans, and may be distorted by double-counting. Where possible, we footnote for or provide some guidance on these variables. However, in the absence of enforced or agreed-upon standardisation and transparency, these inconsistencies will continue to undermine our ability to directly compare banks’ AUM.

Mid-market rates used as at 31 Dec 2023 for their respective years for non-USD reporting. For 2023: MYR-USD 0.217510