Q1: Private banks in Asia have faced a number of challenges in 2024, from uncertainty around interest rate cuts in the US to volatile markets and geopolitical tensions. Considering this background, how did you safeguard AUM and revenue streams in 2024, while also attracting net new assets? What will your strategy be in 2025?

2024 was a challenging year for private banks in Asia, marked by a slower pace of US interest rate cuts, market volatility, and geopolitical tensions. Despite this, financial asset values proved resilient thanks to strong performance of global equity markets, and diversified portfolios delivered positive returns across asset classes.

The model of BNP Paribas Wealth Management in Asia, proved its strength and adaptability in this environment, achieving new heights in AUM and revenue growth.

Our strong franchise, reputable brand and strong balance sheet, coupled with our effective one bank approach, have set us apart in the Asian financial landscape. Our diversified business model, encompassing various asset classes and geographies, has proven to be adaptive to the changing and dynamic environment, as evidenced by our record-breaking performance.

Looking ahead to 2025, our strategy is built around three key priorities: Capturing market growth by deepening and broadening our wallet share across key markets and segments by investing in and growing our talent; Strengthening our position as the preferred partner for UHNWI and entrepreneurs; and optimising platforms by enhancing client and employee experiences through platform innovation and efficiency improvements.

Q2: How are you advising clients in terms of investment opportunities in 2025? Which markets and asset classes will provide the best opportunities? And how can clients balance leveraging these opportunities while managing risks to their portfolios?

As we enter 2025, context matters. The S&P 500 delivered one of its strongest performances in 2024, marking two consecutive years of 20%+ gains, which is a rare occurrence. While profit growth is expected to replace valuation multiple expansion as the primary driver of returns, we anticipate more moderate gains in 2025.

On equities, we are overweight US small & mid-caps and the S&P 500 equally-weighted index. We favor US cyclical stocks, particularly in financials – which benefit from deregulation – and energy infrastructure within utilities. We are also overweight Japan on improving corporate governance, record share buybacks, and increased shareholder awareness. In Europe, we favour UK equities, peripheral countries, and the Nordics, particularly Sweden, where we see value.

When it comes to fixed income, we expect continued Federal Reserve rate cuts, with the terminal rate reaching 3.75% by 3Q2025. We project that US 10-year yields will drop in early 2025 before rising in the second half, with a 12-month target of 4.25%. We are overweight investment-grade corporate bonds as credit spreads remain tight, and neutral on US Treasuries.

In terms of gold, we have a positive outlook, with a revised 12-month target of US$3,000/oz. This is supported by further rate cuts, central bank purchases, geopolitical risks, and strong private investor demand.

Our approach emphasises diversification across asset classes, including cash, equities, bonds, alternatives, and gold, to manage portfolio risks amid ongoing uncertainties. We continuously adjust both structural and tactical asset allocations, recognising that time in the market — not market timing — drives long-term compounding. Our focus remains on policy rather than politics to guide investment decisions.

Q3: In 2024, the private banking industry witnessed organisational restructurings, leadership reshuffles, as well as heavyweight departures. Looking forward, what are the priorities for your private bank in terms of attracting and retaining talent across the front, middle, and back office? What measures do you have in place for managing personnel transitions?

Our strategy has always been to identify, develop, and retain the right talent. We hire individuals who align with our company culture and value, and we continuously invest in our ways of working to create a positive and inclusive workplace where our employees can thrive and reach their full potential.

For us 2024 has rather been a year of consolidation and growth after several management changes in 2023, mostly internal.

In 2025, we will continue to prioritise hiring and retention in all our key geographies, ensuring that we attract and nurture the best talent in the industry. We’ll also invest in initiatives that foster growth, engagement, and sustainability.

We believe in investing in our areas of strength, therefore, despite the challenges faced by the industry, we have consistently prioritised investments in our people.

We are focused on managing transitions seamlessly. Recognising the challenges associated with organisational changes, we have robust measures in place, including succession planning, structured onboarding and leadership development programmes, to ensure smooth transitions and continuity.

Q4: With wealth clients being increasingly sophisticated, tech-savvy, and time-conscious, they are demanding more expertise and capabilities when it comes to discretionary portfolio management offerings. How is this reflected in your long-term approach to DPM in Asia and efforts to deepen client penetration of these solutions?

Today’s wealth clients in Asia expect more expertise, flexibility, and accessibility from DPM solutions. At BNP Paribas Wealth Management, we are addressing these needs through innovation and strategic enhancements.

One of these enhancements is by expanding investment opportunities. We are integrating semi-liquid alternatives, such as private market assets, into our profiled and tailor-made multi-asset mandates. This approach enhances risk-adjusted performance by leveraging private markets’ lower volatility and low correlation, while broadening opportunities beyond traditional public markets.

We are also focusing on innovative, accessible solutions. Our Crystal Global Bond Fund exemplifies how we are making DPM solutions more accessible. By offering lower investment thresholds, greater transparency, and streamlined onboarding, we are enabling a broader range of clients to benefit from tailored DPM strategies.

By combining innovative investment approaches and client-centric solutions, we are deepening client engagement and solidifying our leadership in DPM offerings across Asia.

Q5: Trillions of dollars of wealth are expected to be passed down to the next generation of clients in Asia over the coming years, bringing into the spotlight services targeted at next-generation clients. What is your bank doing to ensure it captures the full potential of this opportunity, whether via content, outreach, or solutions like family office and wealth planning?

With US$2.5 trillion in Asian wealth projected to transfer by 2030, BNP Paribas Wealth Management is well positioned to serve the next generation. Our strategy integrates specialised training, bespoke solutions and a global perspective.

One focus is on skilled advisors. Our next generation training equips private bankers with insights to meet the unique needs and aspirations of younger clients. In order to build communities, programmes like our NextGen Experience in Asia and Europe foster cross-cultural learning, networking, and valuable insights into industry trends and emerging opportunities.

Family office and wealth planning is also a priority for BNP Paribas Wealth Management. To do so, we take a collaborative approach by aligning wealth advisors, family office executives, and external experts to address succession planning, governance, and philanthropy.

One plus is our European expertise. Drawing from decades of experience with multi-generational families in Europe, we provide tailored guidance for Asian clients on family governance, philanthropy, and family office setup.

Finally, BNP Paribas Wealth Management places strong emphasis on knowledge sharing. Events like our Single Family Office Forum empower clients with tools and insights to establish and manage family offices effectively.