All articles by PBI Editorial
PBI Editorial
Trusted advisers fives time more profitable
Trusted advisers are five times more profitable than untrusted advisers over the course of their client relationships, a survey into building client trust has found. Executive Consultings Value of Trust study said that trusted advisers have a 26% greater share of wallet than untrusted advisers, and manage a majority of their clients assets. Over the past 10 years, 45% of clients with a wide cross-section of wealth management firms had their personal relationship manager changed two or more times.
Swiss banking revenues to hit CHF30bn by 2015
The Swiss private banking industry is forecast to grow in the next five years despite the rapidly changing financial industry and increased regulation, a Swiss Bankers Association (SBA) report forecasts The joint study with Boston Consulting Group said private banking revenues are likely to rise from CHF25.4bn ($29.8bn)in 2010 to roughly CHF29.8bn in 2015. Banking in transition future prospects for banking in Switzerland said the regulatory tightening means that assets sourced from the former core market of Western Europe and invested in Switzerland will continue to decline
Investec AuM climbs to £23bn with Evolution buy
Investec has beaten Canaccord to win the takeover bid for Evolution Group, the owner of UK private client investment manager Williams de Bro (WdB). Investecs wealth business, Investec Wealth & Investment, will have total assets under management (AuM) of about £23bn ($37bn) in the UK.
London to become next RMB offshore centre
The UK Chancellor of the Exchequer George Osborne and Chinese vice-premier minister Wang Qishan are expected to discuss the growth of RMB trading in London at a meeting in the UKs capital, according to the Financial Times.
Asia skills upgrade needed to gain trusted status
Asian private banks must up skill their staff to regain trusted advisor status and ensure sustainable future growth as they grapple with high costs and relatively inexperienced staff. The biennial study of 43 companies across eight countries in Asia found only 18% of private bankers from Singapore and Hong Kong think that they have attained trusted advisory status with 60% of more of their clients.
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CMB reports double-digit client base, AuM rises
China Merchants Bank’s (CMB) private banking business grew its client base 15% in the first six months of 2011, with assets under management (AuM) jumping 17%. Earlier this year, Ding said assets and customer base of the private banking portion were forecast to grow more than 35% year-on-year in 2011.
Overseas arm lifts Crédit Agricole AuM to ?131bn
Steady inflows from international clients in the first six months of the year boosted assets under management (AuM) at Crdit Agricoles private banking unit by 2.3% year-on-year to 131bn ($189bn).
International unit untouched by ABN AMRO cuts
Dutch bank ABN AMRO is to cut 2,350 jobs over the next three to four years with losses expected in its private banking and retail divisions. A bank spokesman said the cuts would mostly affect its retail unit as part of an efficiency drive that would hit its IT and back office functions hardest. Staff numbers at its international private banking division will not be affected and are set to increase as the Dutch bank expands in Asia and the Eurozone, the spokesman said.
Sabadell buys failed Lydian to bulk up US unit
Banco Sabadell said the acquisition of Lydian Private Bank is inline with its strategy to acquire small banks in Florida and becoming one of the largest banks in the region It is Sabadell’s fourth acquisition in the region in just five years, following TransAtlantic Bank in 2007, BBVA’s private banking business in 2008, and Mellon United National Bank in 2010.
BBA re-iterates ‘serious questions’ over FATCA
The British Bankers Association (BBA)said it had serious questions about the withholding and passthru payment proposed in the Foreign Account Tax Compliance Act (FATCA) A BBA submission to the US Treasury and Internal Revenue Service said that further research had reaffirmed its initial concerns about the impact of the FATCA passthru payment requirements on securities settlements and inter-bank payment systems.