The world’s wealth
management leaders have had to battle tough trading conditions over
the past 12 months, making competition for PBI’s
Outstanding Global Private Bank award even more
intense.
With the awards deadline on 2 July, it’s time to get
nominations in. Nicholas Moody looks at some of the
contenders.
Go deeper with GlobalData
The upheavals in the industry over the past two years will hone
attention on the
Private Banker International’s 2010 awards – with
banks from across the wealth spectrum competing to demonstrate who
has best navigated through recent turbulent times.
Strong contenders
HSBC Private Bank will be arguing its case
strongly having won the Outstanding Global Private Bank award last
year when it broke into the top five of PBI’s global
ranking of private banks, underlining its position as a major
challenger to the established hierarchy.
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By GlobalDataThe bank retained its fifth place in the latest
PBI 2010 Global Index, published last month, with $367bn
of assets under management (AuM) – ahead of Citi, which last year
sold its Smith Barney business to Morgan Stanley.
But the industry’s largest players will prove
tough competition as there are now signs they are returning to
health, with improved 2010 first quarter figures for both Merrill
Lynch and UBS.
This suggests a potential shake-up in the
industry in the year ahead, with small and mid-sized private banks,
which have benefited for two years from the outflows of the bigger
players, facing a much tougher battle to grow client assets.
Bank of America-Merrill Lynch (BofA-Merrill)
retained top position as the world’s largest private bank in
PBI’s Global Index. According to analysis of 2009 annual
reports, BofA-Merrill kept its AuM above the $2 trillion mark at
$2.17 trillion, despite dropping almost 10%.
This will give it a strong claim to take the Global Private
Bank award in October and a chance to regain a prize Merrill Lynch
last held in 2007.
UBS faces uphill battle
The awards were dominated for a time by UBS,
which claimed the Outstanding Private Bank prize for three years
consecutively between 2004 and 2006.
During that time, it was indisputably the
dominant force in global wealth management, establishing itself as
the only bank with top three market positions in North America,
Europe and Asia-Pacific.
It has been out of the top spot since then, and
has had to deal with ongoing outfall from its tax evasion dispute
with US authorities – but its recent first quarter results suggest
it may have stemmed new money outflows and be set to grow assets
after a very difficult 2009.
UBS remains in second place in the PBI
Index, holding off a fast-charging Morgan Stanley whose AuM jumped
from $522bn to $1.56 trillion due to its acquisition of Citi’s
Smith Barney brokerage division in the first quarter of 2009.
Morgan Stanley makes a charge
Morgan Stanley’s acquisition could also promote
it into the front rank of contenders for the award as it steps up
its international presence, targeting a 50% increase in overseas
adviser numbers in the next five years.
Credit Suisse, which has comfortably been the
best performing player in the top ten over the past two years, will
make a strong play for the title too. It continued to gather client
assets at the fastest rate in the 2010 PBI Index, registering net
new money flows of 5.5% of 2008 year-end assets.
With global capital shifting constantly eastwards, 2010 may also
herald the opportunity for well-performing banks with strong Asian
businesses to push their way into contention.
Entry forms can be downloaded from: www.vrl-financial-news.com/events/pbiwealthsummit;
or requested by emailing PBI editor: nicholas.moody@vrlfinancialnews.com
Winners will be announced during the PBI Wealth Summit
in Singapore on 20-21 October 2010. Please email completed
nomination forms to pbi.awards@vrlfinancialnews.com
or fax to +44 (0)20 7563 5602. For further information call +44
(0)20 7563 5673.
