HONG KONG, April 12, 2018 /PRNewswire/ -- Assets under management (AUM) at Asia's Top 20 private banks surpassed the US$2 trillion mark for the first time in 2017. Driven by strong net new asset (NNA) inflows -- particularly in the Greater China space -- and market performance, the record total includes a number of milestones for individual banks, led by UBS Wealth Management, which homed in on US$400 billion in AUM at the end of the year. Meanwhile, frontline hiring momentum was consistent in 2017, with Asia's Top 20 private banks by relationship manager (RM) headcount increasing their combined RM number by 7% year-on-year.
Commenting on the 2017 results, Asian Private Banker's Editor, Sebastian Enberg, said, "Asia's private banks benefited from a sustained market rally and robust client activity to deliver strong AUM growth and, in many cases, post record revenues. But, more importantly, few are resting on their laurels, as evidenced by an industry-wide push to revamp platforms and harness new technologies, and to increase assets in managed solutions to fortify against trading volatility and regulatory tightening."
"Offshore competition is also on the increase, with more non-traditional players capable of delivering asset allocation services at a low cost and deep-pocketed Chinese institutions entering the sphere. We expect to see a rapid and wholesale shift in what it means to add value as a private banking provider in the near future."
AUM reaches record high
2017 marked a record high AUM total of US$2.01 trillion, a 29.2% increase on 2016's total of US$1.55 trillion. Morgan Stanley Private Wealth Management, among the biggest movers in 2017, recorded the highest organic growth rate, notching up a year-on-year AUM increase of 43.7%. It was followed by China Merchants Bank (CMB) Private Banking, whose offshore business saw a 41.2% increase in AUM to US$36.7 billion. Julius Baer came in third with a 39.6% year-on-year increase in AUM to US$115 billion following a heavy hiring drive.
Of those that pursued an inorganic growth strategy, LGT jumped from 15th place in 2016 to 12th in 2017 on account of its acquisition of ABN AMRO's private banking business in Asia and the Middle East to reach US$63 billion in AUM -- a 116.5% year-on-year increase -- of which, over US$20 billion came from the transaction.
Front office hiring stabilises, focus turns to efficiency
Asia's Top 20 private banks by RM headcount grew their frontlines by 7% in 2017. Setting aside banks that completed acquisitions over the course of the year, front office hiring was muted, with the total headcount growing just 4% year-on-year. For many industry players, 2017 was about realising efficiencies and, when combined with strong AUM growth, Asia's Top 20 private banks by RM headcount registered a record-high average AUM per RM of US$341 million, representing 14.3% year-on-year growth.
Asia 2017 AUM & RM Headcount League Tables
For the data tables, and complete analysis and commentary, visit:
Media Contacts
Gigi Lam
gigi.l@asianprivatebanker.com
+852 3703 9566
Ben Yang
ben.y@asianprivatebanker.com
+852 2529 5777
NOTES FOR EDITORS
Assets Under Management (AUM) and Relationship Manager (RM) Headcount League Tables
Asian Private Banker has been releasing its annual Assets Under Management (AUM) and Relationship Manager (RM) Headcount League Tables since 2012. They are the most accurate, complete and trusted indicators of their type, used by banks and media alike to benchmark performance and supplement reporting.
For further information, please visit: http://apb.news/17aumasia
About Asian Private Banker (APB)
APB is Asia's largest and best-connected bureau of journalists and researchers delivering independent, authoritative and indispensable intelligence, data and connections solely focused on Asia's rapidly growing private wealth management communities. We distil Asia's authoritative private wealth industry news, data and research, which is then delivered through several platforms:
If you have any questions regarding this data, please contact:
Sebastian Enberg, Editor
sebastian.e@asianprivatebanker.com
+852 2529 7377
If you have general queries, please contact:
Gigi Lam
gigi.l@asianprivatebanker.com
+852 3703 9566
Ben Yang
ben.y@asianprivatebanker.com
+852 2529 5777
