Reporting season has all but ended, with only a handful of institutions yet to post their 2016 financials (EFG, J. Safra Sarasin and Pictet to name a few). By and large, the latest batch of results confirms what we already know: 2016 was a tough year for the private banking industry, which had to contend with difficult market conditions, a pronounced downturn in transactional revenues and regulatory tightening.
While not all institutions provide the same degree of clarity, we’ve sifted through 2016 reports to provide a round-up of the most notable (and detailed) financials available for private banks with a presence in Asia.
| Bank of Singapore/OCBC | - OCBC’s wealth management division (incl. private bank and insurance) record high fee-based income in 2016 - Fees income, as a percentage of total income, +0.5 pp YoY to 19.3% operational expenses +3% YoY (Barclays Wealth integration accounted for 1 pp of increase) - WM fees & commissions income S$588 million (+3% YoY) - AUM US$79 billion (US$13 billion transferred from Barclays Wealth Hong Kong & Singapore) - WM accounted for 27% of group income, at S$2.3 billion - 44% YoY increase in AUM due to a “combination of net new money” and the Barclays acquisition |
| BNP Paribas Wealth Management | - Global wealth & asset management income €176 million (+9.3% QoQ, -4.9% YoY) - Global wealth & asset AUM €1,010 billion euros (+5.8%YoY), WM AUM €344 billion - AUM increase due to “to very good net asset inflows totalling €34.9 billion” including “strong asset inflows” for Asia private bank |
| Credit Suisse Private Banking | - WM “record” net revenues +17% YoY to CHF 1,374 million - PTI of CHF 372 million, +8% YoY - Ultra, entrepreneur & corporate clients activities deliver pro forma PTI of CHF 513 million (+65% YoY) - APAC AUM CHF 168 billion (CHF 150 billion end-2015) - NNA CHF 14.6 billion in 2016 (+10% annualised), “inflows primarily from Greater China and Australia” - CHF 2.4 billion in outflows in 2016, incl. CHF 1.4 billion in Q4, attributed to “regularization”, particularly in the Southeast Asia markets - C/I ratio for APAC private banking +1.3 p.p. to 70.6% - APAC RM headcount 640 (+10% YoY) |
| DBS | - WM income +19% YoY to S$1.68 billion, driven by strong performance in “loans, deposits, bancassurance and cards” - WM fees +19% to S$714 million - a “new high” - WM AUM (incl. Treasures, Treasures Private Client, Private Bank) +14% YoY to S$166 billion - WM on track to reach S$189 billion in AUM acquisition of ANZ’s retail and wealth businesses completed in 2017 and 2018 |
| Deutsche Bank Wealth Management | - International private, wealth, commercial clients division EUR 1.07 billion PTI for 2016 - Invested assets of EUR 424 billion (-16% YoY) - Client assets of EUR 577 billion (-12% YoY) - Q4 net outflows on invested Assets of EUR 24 billion, mainly in wealth management in Oct 2016 |
| HSBC Private Bank | - US$3.3 billion loss on the back of goodwill write off Europe business - Global private banking adj. PBT US$0.3 billion, -$0.1 billion YoY, revenue -11% YoY - Asia private bank PBT US$30 million for Q4, US$268 million for 2016 - HK private bank PBT US$28 million for Q4, US$221 million for 2016 - Asia client assets US$108 billion – down from US$112 billion end-2015 |
| Julius Baer | - Operating income +6% to CHF 2.85 billion - Adj. operating expenses -16% YoY to CHF 2 billion / +8% YoY excl. DoJ settlement - Adj. net profit CHF 706 million - Global AUM +12% to “record” CHF 336 billion - NNM +CHF 12 billion (+4% annualised), “strongly supported by inflows from clients domiciled in Asia, the Middle East and Western Europe” - C/I ratio +1.5 pp to 68.9% - “net impact costs” of new RM hires in 2016 “a bit more than two percentage points” - Net hire of 116 RMs, “vast majority” in Asia, Switzerland, Monaco |
| UBP | - Global revenues +24.7% YoY to CHF 934.6 million on the back of Asia growth due to acquisition of Coutts International - Operating expenses +22.2% YoY to CHF 634 million - Operating income +26% YoY to CHF 191.9 million, - C/I ratio -1.4 pp YoY to 67.9% - Global AUM +7.6% YoY to CHF 118.3 billion, driven primarily by growth in private banking and institutional client assets in Asia, and overall positive net inflows from institutional clients |
| UBS Wealth Management | - Globally CHF 511 million profits (-21% QoQ, +1% YoY) on back of decline in operating income for 7th straight quarter (CHF1.8 billion) - NNM outflows driven by cross-border outflows, mainly in APAC and emerging markets - APAC WM +0.1% (annualised) NNM in Q4, +CHF 0.1 NNM - APAC invested assets +2% QoQ to CHF 292 billion, global invested assets (ex-Americas) CHF 987 billion - Asia RM headcount 1,016 (-27 from Q3) |
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