All articles by Ilya Timofeyev
Ilya Timofeyev
Vontobel’s 1H results hit by Swiss franc
Vontobels private banking unit posted positive gains in the first six months of 2011 but pre-tax profit, assets under management (AuM) and net new money (NNM) were all down on a year-on-year basis. The Swiss banks recognition of currency pressure came as the Swiss National Bank (SNB) decided to pump an extra CHF40bn ($55.1bn) into its economy on top of the extra CHF50bn it injected last week.
BNP Paribas gets rid of PIM business in the UK
Investment group Evolution has bought the UK-based private investment management (PIM) business of BNP Paribas Wealth Management, believed to be worth more than £5m ($8.2m), through its subsidiary Williams de Broe (WdB).
Brazilian PB giant eyes Chile, starts new firm
Brazil-headquartered Itau Unibanco (Itau) has signed an agreement with Chile-based asset manager Munita Cruzat & Claro (MCC) to create a new Chilean wealth management firm. The new company, which will retain the MCC name, will focus on new high net worth (HNW) customers, currently managed by both institutions. MCC’s 350 current clients, with assets close to $2bn, will have access to products provided by Itau Private Bank International and institutional products of Itau Unibanco Brazil.
StanChart pushes through $50bn AuM barrier
Standard Chartered Private Bank reported $260m in income for the first six months of 2011, while assets under management (AuM) grew 11% in the same period. The fast-growing private bank has a key investment focus on Asia, Africa and the Middle East and is pushing the collaboration between its consumer and wholesale banking units to drive growth.
SocGen net income up 57% from Q2 2010
Societe Generale’s private bank is progressing steadily towards its goal of growing its assets under management (AuM) to EUR150bn ($215bn) by 2015 having posted solid net income for the first six months of 2011. Net income at the France-based private bank reached EUR74m for the first half of this year, representing a 57% growth on a year-on-year basis compared to EUR47m as at 30 June 2010.
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Barclays Wealth 1H profits decline, AUM grows
Barclays Wealth remains confident it is on track to deliver its 2013 business targets despite a drop in profit before tax in the first six months of 2011. Barclays Wealth chief executive Tom Kalaris reiterated that by 2013 the UK wealth manager wants to have net revenues of £2.3bn, a cost income ratio of <80% and a return on average equity (RoE) of 17-18%. The pre-tax profit of Barclays wealth arm for the first half of this year stood at £88m ($143m) as at 30 June, down 7% compared to £95m for the same period a year earlier.
Credit Suisse 2Q results dip, job cuts likely
Currency fluctuations led to Credit Suisse reporting drops in pre-tax income, assets under management (AuM) and gross margins with net new money inflows remaining strong despite a 27% drop over the second quarter. Credit Suisse wealth management business saw a 4% quarter-on-quarter decline in pre-tax income to CHF595m ($743m) as at 30 June 2011, from CHF623m three months earlier.
EFG AuM continues slide; reshapes strategy
EFG International reported a net profit downgrade and a 6% fall in assets under management (AuM) in its 2011 first half results as it confirmed a pull-back on hiring and a re-focus on its core private banking services.
UBS income, new assets and AuM decline in 2Q
Total operating income, net new money and invested asset levels all declined at UBS wealth management divisions in the three months to 30 June 2011, driven in part by the value of the US dollar and euro against the Swiss franc. The Swiss private banking giant saw a 23% quarter-on-quarter decline in group pre-tax profit to CHF 1.7bn ($2.12bn) as at 30 June 2011, forcing the bank to revise its 2009 targets.
Global looks good, Europe loses trust: BofA
One in five investment managers (19%) worldwide thinks the global economy will strengthen in the next 12 months, although their pessimistic view on Europe continues, Bank of America Merrill Lynchs monthly fund manager survey has found The survey revealed 11% of fund managers and asset allocators predict higher global corporate profits in the coming year, up from 7% in June. Sovereign debt fears led to a high level of pessimism over the European economy with 64% of respondents identifying the EU sovereign debt funding as the number one tail risk, a 21% increase from June.