Revealed: World’s top 25 wealth managers

22 July 2014   Category: News, Global, USA, Europe   By Daniel Shane

Swiss asset manager UBS AG has led a prominent ranking of the world’s top wealth managers for the second-year running, as its AUM rose 15% last year to almost US$1.97 trillion.

Research by London-based consultant Scorpio Partnership found that the private wealth industry’s top 25 players by AUM saw their assets rise by an average of 11.3% during 2013.

The Global Private Banking Benchmark 2014 said that these firms now controlled more than 78% of the industry’s overall AUM, up 1% from the prior year.

While the top five ranked managers all retained their positions from 2013’s study, there were some notable movements in the most recent report. BNP Paribas and Deutsche Bank both moved up by one place, to sixth and seventh place, respectively, while HSBC, which is pursuing an ongoing strategy of withdrawing from non-core markets, slipped two places to eighth, as its AUM dropped 4% to $382 billion.

Julius Baer increased its AUM by 40.7% to $282.5 billion, the report found, which was partly due to the continuing acquisition of Bank of America Merrill Lynch’s international operations.

Scorpio said that the average change in AUM for the more than 200 benchmark banks that took part in the study was 19.7%, or more than double the previous year’s growth. According to Scorpio, the industry as a whole is managing an estimated total of $20.3 trillion in assets.

The company attributed the increase in assets to good performances in global financial markets and strong inflows of net new money, which was boosted by improving economies in the eurozone.

“This year’s results highlight major structural changes taking place in global wealth management,” said Seb Dovey, managing partner, Scorpio Partnership.

“Overall, key growth indicators are positive, but efficiency ratio averages are not yet improving, which is still an alarm bell to consider by many in the corridors of power. In the spite of the data points, we see encouraging signs of client experience innovation around the relationship models and propositions in the sector which is drawing in new clients and may lead to improved results in the next assessment.”

Top 25 private banks worldwide by AUM

Global ranking Institution AUM (US$ billions) Growth %
1 UBS 1,966.90 15.4
2 Bank of America Merrill Lynch 1,866.60 12.5
3 Morgan Stanley 1,454.00 17.5
4 Credit Suisse 888.20 9.5
5 Royal Bank of Canada 673.20 5.6
6 BNP Paribas 395.10 11.4
7 Deutsche Bank 384.10 13.7
8 HSBC 382.00 -4
9 JP Morgan 361.00 13.5
10 Pictet 338.10 12
11 Goldman Sachs 330.00 12.2
12 Julius Baer 282.50 40.7
13 Barclays 233.20 15.8
14 ABN Amro 231.70 8.9
15 Northern Trust 221.80 12.2
16 Wells Fargo 218.00 7
17 Lombard Odier 198.00 12.8
18 Santander 196.50 14.9
19 Bank of NY Mellon 185.00 3.4
20 Credit Agricole 182.00 5.6
21 BMO Financial Group 171.70 7.3
22 CIC 141.80 -2.9
23 Societe Generale 116.30 3.6
24 Bank Safra Sarasin 115.60 22.3
25 Citi Private Bank 112.30 10.2