Private banking and wealth management survey 2008: The benchmark annual survey of the wealth management industry
Euromoney's Private banking and wealth management awards provide the only comprehensive database of wealth management.
2009 Private banking results are live – view them now
PRIVATE BANKING ASSETS UNDER MANAGEMENT ARE UP OVER 120% TO $7.6 TRILLION THIS YEAR
• Global private banking assets under management hit $7.6 trillion, a 128% increase year on year
• Global private banking assets under management are now equivalent to:
o The combined GDP of France, Germany and UK
o 20 million Ferrari 599’s
o 441,000 Sunseeker 37 Tri-deck yachts (the most expensive yacht on sale this year
at the London Boat Show)
o Over one and a half times the market capitalisation of all companies listed on the
London Stock Exchange • Net income growth for the private banking industry is averaging 44% year-on-year globally with the fastest growth coming in China
Private banking 2008 Results: When the ultra-wealthy bump into the sub-prime
Private banks attached to investment banks have benefited from the access to balance sheet and innovative products that the relationship provides. But with Wall Street suffering dramatic losses as a result of sub-prime mortgage exposure, will that relationship be the private banks’ downfall?
Private banking and wealth management survey methodology
Assets under management in private banking have shot up from $3.34 trillion to $7.6 trillion in 2007, according to the results of a comprehensive survey of 398 private banking and wealth management institutions, carried out by Euromoney magazine. The research shows a genuine and substantial increase in private wealth and comes as the global economy continues to battle the effects of this summer’s US sub-prime crisis, proving that while some major investment banking arms and hedge funds suffered losses, private banks have had a bumper year.
Europe maintains its leadership as the world’s pre-eminent wealth management centre with 41.70% of global assets under management. North America (including Mexico and the Caribbean) followed closely with 37.60% of global assets under management.
The survey reveals the continued rise in private banking assets is backed by genuine growth in asset inflows as new wealth is created. It is not simply a reflection of rising asset prices. More wealth is being created in more places, particularly the emerging markets.
These huge inflows have meant bumper profits for the banks that manage them. Net income growth was 44% for the industry globally with the fastest growth coming in China, 135% over the past year. Other emerging economies where private banking income is surging include Russia at 88% and India at 84%. Comparative laggards include Indonesia (10.4%) and Italy (11.5%).
|BBC's Fiona Bruce
private banking awards
dinner in London
Clive Horwood, editor, Euromoney magazine, said: "While concerns grow about the state of the economy, there is no doubt that global wealth continues to increase at a rapid pace. These wealthy individuals and families are spread over an increasingly diversified geographic base, and are demanding a higher quality of service from companies and people who manage their wealth.” He added, “It is no surprise therefore that all of the world's leading financial institutions are focusing more of their efforts on this high-growth, but extremely challenging, business opportunity.” The full and comprehensive results of Euromoney magazine’s Private banking survey were published 8th January 2008 followed by an awards ceremony in London for the leading institutions in the industry.
Full results include:
Best private banking services overall I Net-worth-specific private banking services I Equity portfolio management by private banks I Fixed income portfolio management by private banks I Hedge fund investment by private banks I Managed futures by private banks I Private equity investment by private banks I Structured products investment by private banks I Foreign exchange investment by private banks I Real estate investment by private banks I Precious metals investment by private banks I Art banking by private banks I Luxury investment by private banks I Ethical investments I Islamic banking services I Philanthropy services I Corporate advisory for private banking clients I Family office services I Inheritance and succession planning I Tax guidance and services by private banks I Trust services I Specialized services by private banks I Offshore private banking services
About the Private banking and wealth management survey
The annual Private banking awards provide a qualitative and quantitative review of the best services in private banking, by region and by areas of service. It is an informative guide for high net-worth individuals on the range of professional wealth management service providers that are available.
Factors such as assets under management, profitability, ratio of clients to relationship managers, and services offered, among other things, are all considered in developing the ranking of top private banks.
Euromoney, the world’s leading financial markets magazine, has singled out the outstanding institutions in the most dynamic, competitive and profitable industry of all – finance.
Euromoney's specialists cover banking, credit, equity, fund management, corporate finance, FX, and regional markets. Since 1969 Euromoney has proven that compelling editorial, provocative stories, in-depth interviews and rigorous independent research will be read by business leaders who want to know the inside story on the global financial markets.