DPS TEMPLATE.indd - Euromoney

2014

The inevitable evolution of Asia’s wealth hubs As offshore moves onshore, will there be a challenge to the position of Singapore and Hong Kong as the wealth centres of Asia? By Rob Hartley As offshore banking becomes ever more challenging, Asia’s traditional bastions of the industry, Hong Kong and Singapore, find themselves in uncharted waters. On one hand, they stand to benefit as regulation dents Switzerland’s stature as the offshore centre of choice for the world’s wealthy. On the other, centres such as Shanghai and Jakarta are emerging as competitors. The new paradigm taking shape in the Asian private banking scene is throwing up some big challenges for the traditional offshore havens. Their ability to meet those challenges will determine whether they retain their dominant position. The dynamics of private banking in Asia may be changing, but the market can take heart from the fundamentals. According to the Boston Consulting Group (BCG) Global Wealth 2014 report, global private financial wealth jumped 14.6% year on year in 2013, to a total of $152 trillion. The report shows that Asia-Pacific, excluding Japan, was the fastest-growing region worldwide. The private wealth of the region jumped to $37 trillion in 2013, a rise of 30.5% year on year, says the report. The main drivers of the rise were strong nominal GDP growth in China and India, combined with high savings rates in both countries. The jump in private financial wealth ran alongside a global 11% rise in assets under management (AUM) by wealth managers, again with Asia-Pacific seeing some of

the strongest growth figures, the report says. The shake-up in Asian private banking is in no small part due to the effects of a new regulatory environment within the region. Eva Law, founder and chairman of the Association of Private Bankers in the Greater China Region, believes the regulatory approach is tightening and expects to see new regulation on areas such as advisory behaviour. “In Hong Kong, we are expecting the announcement of the competency benchmark,” she says. “The Hong Kong Monetary Authority together with the Private Wealth Management Association, the Hong Kong Institute of Bankers and the Treasury Markets Association, are currently developing the enhanced competency framework. Obviously, it will shape the regulatory approach for the private wealth management business.” In China however, Law believes the most significant regulations are new guidelines from the China Banking Regulatory Commission on the trust business, which address the crucial issue of succession management. Previously, wealthy families in China used offshore solutions for succession management, or possibly just left the issue unmanaged. It is now possible to invest in an onshore trust, according to Law.

New versus old While Singapore and Hong Kong still dominate as locations for

“Regulators in China are actively managing the industry and their regulatory standards are also catching up with the developed markets. I see the market operating in an orderly fashion and it is also on a good development track”

private banking in Asia, signs are emerging that new wealth centres are keen to fight them for new business. Law sees Shanghai as the emerging centre for wealth management in North Asia and Indonesia as a new player in Southeast Asia. According to Law, China’s production line of new millionaires is feeding Shanghai’s growth as a private banking centre, with nearby new riches in countries such as Mongolia also adding to its rise, while Indonesia

is benefiting from rising wealth in its domestic market. “Regulators in China are actively managing the industry and their regulatory standards are also catching up with the developed markets,” adds Law. “I see the market operating in an orderly fashion and it is also on a good development track. The key worries are about the shadow banking system and the possible significant downturn of the property market that may cause short-term instability to the market and industry as a whole.” But, despite the signs of growth in both Shanghai and Indonesia, it will be hard to replicate the history and tradition of Hong Kong and Singapore, where the culture of private banking has been built up over decades. “Citi’s private banking business in Asia began in the early 1980s and therefore Citi has been witness to the evolution of both financial centres for well over 30 years,” says Bassam Salem, Asia Pacific CEO of Citi Private Bank. “Both have grown drastically over the years and those changes can be characterized by a higher level of sophistication and better regulation. This has been extremely beneficial for the wealth management business, setting the stage for increased product availability, a greater pool of talent, highly sophisticated infrastructures, quality premises and working environment and internationalization. An obvious change being internationalization, whereby in the past the business catered to only Asians and that has changed to include a clientele that

Bassam Salem, Asia Pacific CEO, Citi Private Bank

is more international and diverse.” Salem agrees about the importance of regulation in changing the environment for wealth management in Hong Kong and Singapore, but prefers to highlight the benefits to these two established centres rather than the threat to their business. “Regulation has definitely had a great impact on how business can be conducted,” he says. “Regulators have stepped up the quality of supervision tremendously and this is necessary as the wealth management business continues to attract a wide range of players as well as clientele in these two key centres. As a result, Hong Kong and Singapore have become more highly regulated locations but more importantly they have also evolved into being more sound and trusted centres as well.” And, according to Salem, there are key differences between the strategies adopted by Hong Kong and Singapore in the current climate. “Hong Kong operates more like a regional hub for greater China, for companies that are interested in listing, bond issuance or generally for Chinese businesses looking to set up in Hong Kong with the owners of those companies looking to live as well as to work there,” he says. “Singapore, on the other hand, in addition to serving the Asean countries, has emerged as a key centre for non-resident Indians [NRIs] as well as for international wealth coming

abroad from the West.” The boom in private wealth around Asia-Pacific is so strong that the Boston Consulting Group believes, in the long run, mighty Switzerland will be challenged in its position as the world’s largest offshore centre by the rise of Singapore and Hong Kong. According to BCG, assets booked in Singapore and Hong Kong are projected to grow at compound annual growth rates of 10.2% and 11.3%, respectively, to 2018, and are by then expected to account collectively for 20% of global offshore assets.

From Russia with love The general growth of private wealth and AUM within Asia is an encouraging foundation for development in the region’s private banking sector, but the conflict in Ukraine could also be providing unexpected benefits to Asian wealth centres. Since the fall of the Soviet Union, new Russian money has comfortably parked itself in various welcoming jurisdictions around the globe. But the military conflict in Ukraine has plunged Russia’s rich into uncharted territory where they may be forced to be more selective about the destination of their wealth. Chris Weafer, senior partner at Macro-Advisory, a Moscow based Russia-CIS macro and business consultancy, tells Euromoney that the flow of Russian money to Asia has certainly picked up

this year but the volume remains quite modest. He sees Hong Kong and Singapore as the locations of choice for Russian money for various reasons: the frequency of flights to Moscow; a relaxed visa regime; good shopping, hotels, restaurants and nightlife; well-regulated financial industries and open economies, plus the fact Russians can buy property there. Weafer cites several reasons for this uptick in interest in Asia from Russia, the first being the fear of sanctions imposed by the US and the G7. “Even though the official sanctions only affect relatively few people at or near the centre of power in Russia there is a fear that sanctions may be extended at any time and affect ‘ordinary’ Russians,” he says. “People fear that their bank accounts might be subject to some restrictions or even suspension and they have been moving some or all of their liquid assets to safer jurisdictions. Russian media has been playing up the sanctions threat with great prominence and that has added to the sense of fear about western banks.” He also highlights the chatter on a governmental level in Russia about dealing more with Asia, increasing the appeal of the region at a time when the fear about western banks is growing. “It is partly a move to safety but also, because of the talk about increasing trade and investment with Asia, people are moving money to position for possible future investment. For example, if trade and cross-border investment does increase a lot then we will see more Russians travelling in the region more often and owning real estate in the countries where they are allowed.” Weafer explains that concerns over the implications of the US FATCA legislation and a lingering suspicion over Cyprus, traditionally a favoured safe haven for Russian cash, are also contributing to interest in Asia.

“Hong Kong and Singapore have become more highly regulated locations but more importantly they have also evolved into being more sound and trusted centres as well”

“We have probably seen most of the flows already. Sanctions risk is now easing and while money previously diverted to Asia will likely stay there for now, I think the urgency to move from those who have not already done so, is small. People and companies will now likely wait and see what happens next in the US and EU concerning Russia relations before making any further significant moves.” The fight for new sources of wealth such as that coming out of Russia is just one front in the evolving battle for private banking business in Asia. The traditional offshore locations of Hong Kong and Singapore have had to adapt to a new reality over the past few years, including the emergence of onshore rivals, but there is plenty of evidence that they are both changing and thriving. But as the wealth of Asia continues to rise, the competition for the spoils is only going to become more intense.

A Euromoney Magazine sponsored statement

Reaping a profitable harvest Agricultural Bank of China has its roots in rural China but today has an international profile and a booming private banking department with a client base that is growing at a rate of nearly 30% a year. Yin Jinqiang, the bank’s head of private banking, explains how ABC is sowing the seeds for continuing success in the wealth management field Your bank was set up more than 60 years ago to provide banking services to China’s rural areas. How did it evolve into a bank with a highly successful wealth management department? As one of the major integrated financial service providers in China, the Agricultural Bank of China (ABC) was initially established to cater to the needs of the Sannong –agriculture, farmers and rural areas of China – and to capitalize on the synergy between urban and rural areas. Today, in a rapidly developing China, ABC is expanding into the international market and providing a portfolio of diversified services to establish itself as a world-class modern commercial bank. The bank launched its private banking department in October 2010 to offer professional, customized services to our high-net-worth customers, in particular those with assets of more than RMB6 million. Five years on, the bank has seen its service enjoy impressive growth thanks to a combination of our highly professional staff, a countrywide network of outlets and services, and a firm commitment to putting clients’ interests first.

How popular are your private banking services today and precisely how fast is your client base growing? Private banking has proved extremely popular with our customers. Our private banking

Yin Jinqiang, head of private banking, Agricultural Bank of China

business is enjoying exponential growth and a rapid expansion of the scale of assets, with increasingly optimized asset allocation. As of the end of 2013, we had established private banking departments in 21 branches. The number of private banking clients reached 45,000, up 10,000 from the beginning of 2013, with assets under management of RMB505 billion, up RMB109 billion from the beginning of the year.

Wealth management in China today is a fiercely competitive sector. What does ABC Private Banking offer clients to set itself apart from its rivals? ABC Private Banking provides comprehensive, tailor-made and confidential wealth management services for high-net-worth retail customers and is constantly enhancing the professional service capabilities of its private banking business. Over the past year, we have accelerated product innovation and cultivated our independent

Private Banking Department Agricultural Bank of China www.abchina.com Customer Service Hotline: (86 21) 52895599

research and development capability, contributing to the rapid growth of private banking and enriching our range of products. We have also strengthened integrated financial services for shareholders of publicly listed companies, crossborder financial services, financing services, information services and legal and tax consultation services. To raise the standard of our integrated customer services, we introduced five value-added services in the areas of travel, health care, luxury living, leisure activities and social networking. Our range of services even includes a personal butler service for clients. To further strengthen our consultation services, we plan to expand into new areas of business such as family trust and high-end insurance.

Private banking clients are notorious for demanding the very best. What is your philosophy for keeping them satisfied? Our wealth management team has

been set up under a client service model called ‘1+1+N’ – fulfilling the roles of wealth consultants, branch customer managers and a team of experts specializing in financial products and other areas. ABC Private Banking has also been a dedicated innovator of products and services. Drawing on resources inside and outside the bank, ABC Private Banking provides tailor-made products and service solutions to clients, covering wealth and asset management consultation and advisory services, and a wealth of other value-added services. And to build on our relationship with our clients, ABC Private Banking has hosted a wide spectrum of customer events with special themes and programmes.

How will you continue to improve the services you offer, and what is your goal for the months and years ahead? Looking ahead, we will continue to integrate internal and external resources, and draw on domestic and overseas experience to position our brand as a reliable and client-oriented partner. Our service concept is a simple one – to prioritize our clients’ needs and to strive for sustained progress. By following these principles, ABC Private Banking will continue to stand out from the competition because of our unique advantages. Our objective and goal is to create a platform for our high-end clients to achieve lasting, long-term growth and security.

Meeting China’s high-net-worth demands As China’s wealthy become more investment-savvy, domestic banks will have to expand or look for new partners By Rob Hartley The remarkable rise in China’s wealth has captured the world’s attention. China should become the planet’s richest nation some time in the near future, firmly marking out the 21st century as its own. And as the country’s wealth and prosperity have risen, so have the individual fortunes of some of its more industrious citizens. Newly-minted millionaires and billionaires grow in number every year and are demanding an increasingly sophisticated approach to the management of their wealth. The ever-increasing wealth of Chinese customers means domestic banks are under heavy pressure to provide the services required by globally-minded businessmen and their families. As the tastes of the Chinese elite change, and they venture further and more often outside China, the demands they place on those managing their wealth also change. Chinese private banks are acutely aware of this as they strive to keep track of their lucrative clients’ preferences. Liu Jianjun, executive vice president of China Merchants Bank (CMB), tells Euromoney that the demands of high-end domestic clients for the allocation of assets globally have increased with the internationalization of the renminbi and globalized capital. He also highlights figures showing that in 2012, the overseas component of the total assets of high-networth individuals (HNWIs) increased to 20% from 10% two years earlier. “As a commercial bank based in

mainland China, China Merchants Bank is expanding its global private banking service to match the increasing client demand,” he says. “From the very beginning, we focused on the global asset allocation demands of high-end domestic clients. Compared with the global market leaders, local banks will need time to develop and build up competitiveness in the private banking arena. “In the meantime, we will mostly focus on areas where we have an established familiarity. CMB has experienced continuous and rapid growth in its private banking business over the past seven years, building a stronger brand name, competitive advantages in the market and becoming a leader in the domestic private banking industry.” He adds that the biggest challenge in allocating assets globally is how to introduce overseas products to local highend clients and help them to understand the risks and returns. The exact figures are always going to be tough to record in China due to sensitivities about publicizing fortunes, but Boston Consulting Group says millionaire households in China rose from 1.5 million in 2012 to 2.4 million in 2013. On a global scale, the US is still well out in front, but this figure puts China ahead of Japan, which now lags in third place. It would be a safe bet to assume the figure will keep rising, creating more demand for private banking services from Chinese clients. It is not just local wealth managers that covet a role in meeting this demand.

“The number of Chinese highnet-worth clients continues to grow, their needs become more sophisticated, and the fluidity between onshore and offshore markets increases”

Foreign partnerships The need for a global outlook has sparked various tie-ups with foreign firms, providing a convenient route for Chinese firms to expand their wealth management services without having to grow organically. Thomas Meier, member of the executive board and region head AsiaPacific at Bank Julius Baer, says his company has been in strategic collaboration with Bank of China since mid-2012. And Meier thinks

it is very likely that there will be more partnerships between Chinese and foreign banks in the private banking sphere. “The number of Chinese highnet-worth clients continues to grow, their needs become more sophisticated, and the fluidity between onshore and offshore markets increases,” he says. “Therefore, we expect that more partnerships between Chinese and foreign institutions in the private banking space would be forged.” The benefits to Chinese firms of teaming up with international private banking firms are numerous, according to Meier. “Chinese HNW clients are increasingly globalizing their business, investments and residence, while the intergenerational transfer of family wealth is also happening. To offer advisory and solutions in these areas, Chinese banks can benefit significantly from the expertise and global network of leading international private banks.” And, on the flip side, foreign banks stand to reap a series of benefits from their associations with Chinese firms, whatever form those associations take. “For the international private banks, China is definitely one of the key growth markets,” adds Meier. “The Chinese banks have a vast onshore HNW client base as well as onshore RMB product capabilities, which are of great interest to international private banks and could be accessed via a strategic partnership. “On a broader note, as RMB gradually becomes an international

currency supported by the rise of offshore RMB centres and cross-participation mechanisms, such as QDII, R/QFII and the HK-Shanghai Stock Connect, strengthen the convergence of onshore and offshore markets, Chinese banks and international private banks are motivated to work together to offer clients a total value proposition that reflects the globalized needs of Chinese clients.” Initiating a partnership of some kind with a Chinese private banking operation does appear to be a successful route into the country for some, but it is more questionable whether any foreign private banks have had success attempting to do business in the country on their own. According to one Hong Kong-based private banker, who asked to remain anonymous, foreign private banks struggle to turn a profit in China. “There are several reasons for that,” he says. “One is that China is a heavily regulated private banking market. Also, since the sensitive issue of trust products came to light, a bank in China can only sell its clients balance sheet products, deposits, loans, structured deposits. It can’t sell securities, it can’t sell funds. It can’t do what makes the essential part of a private bank’s business. You will have to go to a securities house for the bonds and stock, you have to go to a funds house for the funds. And since it is not the culture of private banking

clients in China, particularly, to pay just for advice, it’s very unlikely that you would be able to [create] a viable model. This is why private banks that are present in China are there mostly for prestige reasons and very, very high-level strategic reasons.” The banker insists that this inability to make profits in the Chinese private banking industry remains the main barrier to entry for any foreign company looking to do business there. “When you can’t expect to make any real money, it is a huge barrier to entry.” Barriers to entry in terms of regulation, he adds, include the restriction on the range of products that can be sold in China. “Second would be price control, although those laws have been somewhat relaxed on how much you can earn during a project, or charge on a loan, but there is a strong control over what one does and what one can’t.”

Competition Outside China, there is a different picture altogether. The large, globally established private banks are more dominant in the traditional Asian offshore centres and beyond. The established brand names have cultivated their reputations for years and have a deep understanding of the business. “Foreign banks dominate the market,” the banker continues. “The Chinese banks are all investing

Dr. Thomas R. Meier, Region Head Asia Pacific, Bank Julius Baer

quite heavily in private banking. But they are not competitors yet, in the broadest sense of private banking. I think they are moving upwards, starting with their retail branches and moving up to premium banking, sort of affluent wealth management. “The thing with private banking is that it’s an industry where you need to invest for a very, very long time, before you get the right relationships, before you get the right offering, therefore before you are able to attract the kind of bankers that will bring the right kind of clients, unless you are able to channel the clients from your corporate banks. Chinese private banks haven’t yet acquired the breadth of product offering and the credibility in terms of advice that a full-scale private bank requires.” But will this change? Can we expect Chinese private banks eventually to branch out of their home market and use their acquired knowledge and relationships to challenge the most established private banks on their own turf? These are questions that don’t seem to worry the big players, in the short term at least. “If you have a long timeframe, I think so, undoubtedly,” adds the banker “A number of big banking conglomerates have developed private banking activities, so there is no reason why the Chinese banks wouldn’t achieve that. The question is what sort of timeframe we are looking at. When you look at who is truly established as an important international private bank, you take the top 10 say in the world, these are all banks that have taken a long time to establish themselves. Newcomers are very rare in that industry. I think we are talking quite a long timeframe.” The growth of China and the increasing wealth of its citizens are set to continue on the remarkable upward trajectory of recent times, which can only accelerate the need for private banking services. However, it is far from clear who

“Chinese private banks haven’t yet acquired the breadth of product offering and the credibility in terms of advice that a full-scale private bank requires”

will take the spoils in this high stakes game to manage the wealth of some of the globe’s newest millionaires and billionaires. Domestic Chinese private banking is developing at a strong pace, but remains a difficult market to penetrate for foreign players. In the meantime, this gap is increasingly being bridged through cooperation and partnerships between Chinese and foreign private banking institutions. And while rich Chinese still have the option to employ the services of globally established wealth managers outside their home country, the possibility that they could one day be offered a universal range of services from a globally established domestic Chinese player cannot be discounted. In the meantime, the battle to manage wealth in China is set to continue, with plenty still to play for. And only those that can offer the newly wealthy exactly what they want at the right price are likely to prosper in the future.


Maybank PRIVATE WEALTH: Your gateway to Asia With more than 2,400 branches and offices in 20 countries serving more than 22 million clients, Maybank is an expert wealth manager and a perfect partner for investment and business opportunities in Asia and beyond When you’re doing business in Asia, you need a partner you can trust: a partner that knows the territory and has the expertise to open the door on a new world of opportunity. For a growing number of investors and businesses from every continent, that partner is Maybank. With more than 2,400 branches and offices in 20 countries and a customer base of more than 22 million, Maybank is the only bank with a presence in all 10 Association of Southeast Asian Nations (ASEAN) countries. Maybank combines its regional expertise with a commanding presence in key global financial markets such as London, Hong Kong, New York and the Middle East, making it the perfect partner to bridge the world and help tap investment opportunities in Asia and beyond.

Solid foundations Maybank is the number one bank in Malaysia and the first and only Malaysian bank to rank among the world’s top 20 strongest banks, as rated by Bloomberg Markets – a ranking awarded for two consecutive years. Among the top banking groups in ASEAN in terms of assets and market capitalization, Maybank had $177 billion in assets and a market capitalization of $26.36 billion at the end of March 2014. Underscoring the solid financial foundations is a vision from the bank’s founding fathers for Maybank to be a catalyst for economic and social development and to bring a human touch to financial services

being made available and then reviewed on a regular basis. To achieve a balanced portfolio, our asset allocation model is made up of core and satellite investments. Core investments are managed with a focus on diversification and regular rebalancing to keep volatility and risk to acceptable levels, while satellite strategies have the potential to deliver high returns from shortterm active management.

A powerful partnership

Maybank’s private wealth team, from L to R: Mr. Lim Kok Boon – Head, Products and Research; Mr. Fong Wai Sun – Head, Strategy and Business Development; Ms. Alice Tan – Head, Investment Advisory; Mr. Alvin Lee – Head, Regional Private Wealth; Ms. Patricia Sim – Head, Operations; Mr. Clinton Wee – Head, Singapore Onshore Market; Ms. Amily Mak – Head, Private Wealth Malaysia

across Asia. Maybank is committed to providing clients with convenient access to financing, maintaining fair terms and pricing, giving clients advice based on their needs and – however global our reach – remaining firmly at the heart of every community we serve.

Expert in wealth management Maybank has built on its half century of experience of catering to its clients’ needs by creating a prestige service for high-net-worth clients across the region: Maybank Private Wealth. The bank’s private wealth team comprises investment specialists in locations across Asia who work closely with clients to provide them with the very latest market knowledge and expert

investment advice. Our specialists have a profound understanding of how changing economic and political situations, along with movements in the financial markets and the evolution of the business cycle, combine to create an ever-changing investment landscape. The ebb and flow requires constant vigilance and monitoring and analysis to achieve the very best results for our clients’ portfolios – something our experts are dedicated to provide. Our open architecture platform gives clients access to a comprehensive range of products and services to meet their wealth management objectives. Each product is risk-rated and approved by an internal committee before

Our client advisers are meticulously trained to discuss and understand a client’s specific wealth objectives and risk appetite. They are supported by investment specialists who provide clients with detailed advice on specific investment strategies. The relationship between client and client adviser is central to the integrity of our private wealth team. We concentrate on building long-term relationships and dedicate our total attention to clients’ needs and goals. As well as investment solutions and services, our private wealth clients enjoy exclusive privileges, invitations to closed-door events, customized business and networking opportunities and numerous benefits that come from being part of an elite network of high-networth individuals.

A time for action In a fast-changing world, a lasting relationship built upon trust and mutual respect is the key to unlocking a future of unprecedented potential. That is why the bond between Maybank and its clients is so important. Today’s low interest rate environment has brought with it an increased focus on credit as clients seek to make their capital work harder. Our core strength as an Asian bank gives the bank and its clients more flexibility in financing options. There is a world of opportunity out there. Talk to us today, and find out how we can navigate it together.

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Asia private banking survey 2014

Asia Best private banking services overall

49

Pictet

6

50

Bank of East Asia

7

8

IIFL Private Wealth Management

Relationship management

8

6

Kotak Mahindra

2014 2013

2014 2013

9

Goldman Sachs

1 1 UBS

1 3 HSBC

10

JPMorgan

2 2 Citi

2

11

Nomura

3

3 1 Citi

12

Mitsubishi UFJ Merrill

4 3 HSBC

4 2 UBS

Lynch PB Securities

5 13 JPMorgan

5

China Merchants Bank

13

4


6

Deutsche Bank

6

JPMorgan

14

Standard Chartered


7

Bank of China

15

BNP Paribas

BNP Paribas

8 10 ICBC

16

Bank of Singapore (OCBC)

Standard Chartered

9

BNP Paribas

17

Morgan Stanley

Bank of China

10

Standard Chartered

18

China CITIC Bank

11

Deutsche Bank

19

Bank of China

Kotak Mahindra

12

SMBC

20

Hana Bank


13

Mizuho

21

DBS Bank

Goldman Sachs

14


22

Julius Baer

DBS Bank

15

Kotak Mahindra

23

China Minsheng Bank

16 17 Barclays

Privacy and security

24

Shinhan

17

Merrill Lynch

2014 2013

25

ABN AMRO

Wealth Management

1

Nomura

2 3 Citi

2014 2013

Julius Baer

3 2 UBS

1 2 UBS

Hana Bank

4 4 HSBC

2

21 16 Shinhan

5

JPMorgan

3 1 HSBC

22


6

Julius Baer

4 4 Citi


7

Deutsche Bank

5

JPMorgan

Lynch PB Securities

8

BNP Paribas

6

Standard Chartered

China Minsheng Bank

9

SMBC

7

6

Kotak Mahindra

Maybank

10

Goldman Sachs

8

7


Mizuho

11

10=

Merrill Lynch

9

8

Merrill Lynch

Morgan Stanley

Wealth Management

Wealth Management

ABN AMRO

12

DBS Bank

10

Julius Baer

29 25 SMBC

13

Standard Chartered

11

ICBC

30

14

ABN AMRO

12

Barclays

31 18 HDFC

15

LGT

13

Deutsche Bank

32

China CITIC Bank

16 10= ICBC

14


CIMB

17

Mizuho

15

BNP Paribas

ANZ

18

ANZ

16

Nomura

China Construction Bank

19

Barclays

17

Goldman Sachs

Agricultural Bank of China

20

Coutts

18

Bank of China

ICICI Bank

21

Hana Bank

19


MUFG

22

Bank of China

Lynch PB Securities

UOB

23

MUFG

20

Hana Bank

Bank of Communications

24


21

Coutts

Kookmin Bank

25

Shinhan

22

Shinhan

SMBC Barclays Wealth

Range of investment products

23

ABN AMRO

Societe Generale

2014 2013

24

China CITIC Bank

Hang Seng Bank

1 1 UBS

25

ING

45

Woori Bank

2 2 Citi

Bespoke Wealth Planning

46

Lombard Odier

3

2014 2013

LGT

4 3 HSBC

1 1 UBS

Daiwa Securities

5

2

7 8 9 10

4

12 5 22 11 6

Credit Suisse

11 10 ICBC 12 13

8 20

14 15 7

18 19 20

23

21

19

24

15

25 26 27 28

24

33 34 35 36

14 23

37 38 39 40

9

41 42 43 44

47 48

10

Coutts

Euromoney Asia Private Banking Review

CORRECT 0914 PB Survey and Charts 14.indd 10

6

4 5

1

7

5 6

5 9

Credit Suisse

Credit Suisse

Credit Suisse Deutsche Bank

© Copyright Euromoney

7

ICBC

Range of advisory services

3

9

5

2

Credit Suisse

Credit Suisse

www.euromoney.com

02/09/2014 09:49

3 4 HSBC 4 3 Citi

High Net Worth I clients ($1 million to $10 million)

20=

MUFG

22=

Shinhan

2014 2013

22=

Hana Bank

1 2 Citi

24


25

SMBC

5

JPMorgan

6

Barclays

7

Deutsche Bank

8


3 3 UBS

9

Mizuho

4 1 HSBC

10

BNP Paribas

5

BNP Paribas

2014 2013

Kotak Mahindra

6


1 1 UBS

12


Lynch PB Securities

2 3 JPMorgan

13

Ernst & Young

7

DBS Bank

3

14

PricewaterhouseCoopers

8

Nomura

4 4 Citi

15 7

SMBC

9

China Minsheng Bank

5

5

Goldman Sachs

Kotak Mahindra

6

8

Deutsche Bank

Standard Chartered

7

11

10

5

2

4

Credit Suisse

Ultra High Net Worth clients (Greater than $30 million)

2

Credit Suisse

16

9

Bank of China

17

8

Merrill Lynch

Wealth Management

12

Barclays

8 6 HSBC

18

Julius Baer

13= 5


9

Nomura

19

Hana Bank

Mizuho

10


Deutsche Bank

11


12

7

Merrill Lynch


Wealth Management

JPMorgan

13

ICBC

Merrill Lynch

14

MUFG

Wealth Management

15

Julius Baer

ABN AMRO

16

Mizuho

ICBC

17= 10

Kotak Mahindra

Bank of China

17=

Coutts


19

Standard Chartered

Coutts

20

IIFL Private Wealth Management Bank of East Asia

20

6

Standard Chartered

21

KPMG

22

Shinhan

23

Goldman Sachs

24

Deloitte

25

China CITIC Bank

Net-worth-specific services Super affluent clients ($500,000 to $1 million) 2014 2013

10 11

7 6

13= 15 16 17 18 19

10

20 21 8 22

9

23

1 1 Citi

24

9

Bank of China

Morgan Stanley

2 2 HSBC

25

Julius Baer

21

3

High Net Worth II clients ($10 million to $30 million)

22

BNP Paribas

23

Hana Bank

2014 2013

24


1 2 UBS

Lynch PB Securities

2

25

5

Standard Chartered

4

DBS Bank

5


7

6 8 UBS 7 6 HDFC

4

Credit Suisse

Shinhan

Bank of China

3 1 Citi

Equity portfolio management

9

Credit Suisse

4 6 JPMorgan

2014 2013

10


5 3 HSBC

1 4 Citi

Lynch PB Securities

6

Deutsche Bank

2

Goldman Sachs

Goldman Sachs

3

JPMorgan

8

3

11

Nomura

12


8

Nomura

4 2 Nomura

13

UOB

9

Bank of China

5

14

BNP Paribas

15 10 ICBC

7 10

Morgan Stanley

10

5

Merrill Lynch

6 1 UBS

Wealth Management

7

Credit Suisse

16

ANZ

11

Coutts

8 7 HSBC

17

ABN AMRO

12

Morgan Stanley

9

Daiwa Securities

18


BNP Paribas

10

3

Merrill Lynch

19

ICICI Bank

Julius Baer

Wealth Management

20


Kotak Mahindra

11

10

Kotak Mahindra

21

China Minsheng Bank


12

6

Bank of China


13

BNP Paribas

Standard Chartered

14


DBS Bank

15

Standard Chartered

Mizuho

16

Deutsche Bank

9

22


23

Hang Seng Bank

24

Shinhan

25

China CITIC Bank



13 14 15 16 17

9 7

18 19 20=


5

www.euromoney.com

11

02/09/2014 09:49

Sponsored chapter

Banking on a bright Future for India IIFL Private Wealth has been named Best Private Banking Services Provider in India in the 2014 Euromoney awards. Karan Bhagat, managing director and chief executive officer, tells Euromoney how IIFLW gains its competitive edge by putting clients first – and why the future for India looks exceptionally bright

Congratulations to IIFL Private Wealth on being named Best Private Banking Services Overall for India in the 2014 Euromoney awards. What does this award mean to you and what qualities do you consider give you an edge over your competitors? Winning the Euromoney award was a very proud moment for us. It is one of the most prestigious awards globally and IIFLW is truly honoured. For a young organization like us, it is a significant recognition of our work and of all the people in our organization. We believe there are three important elements for a private wealth organization to succeed: product, people and process. As a relatively young organization – we began in 2008 – we started off by recruiting the best talent, and added to that a high level of conviction, well-researched product expertise and investment in bestin-class infrastructure processes and systems. The combination of these three elements creates an unparalleled experience for our clients and makes IIFLW an organization where client interest and delivery of the value proposition is sacrosanct. At IIFLW, the emphasis is on remaining fresh and vibrant as an organization. We do a yearly appraisal of our entire platform. We ask ourselves: Is the value proposition delivered? Is the proposition still relevant? Do

Ronak Sheth Sr. Vice President, Marketing [email protected]

“There is a continuous process of evolution and IIFLW strives to set the trends for the industry and to do things differently”

them. At IIFLW, the entire top management and mid-management is geared towards this. We get ideas from clients, our partners, our peers in the industry. These get discussed internally and when there is an interesting trend in the making, we seize on it and make sure it gains momentum. There is a continuous process of evolution and IIFLW strives to set the trends for the industry and to do things differently. The organization is driven by a clientfirst and end-to-end ownership philosophy, whereby our client advisers are responsible for the investment process from start to finish. Those principles give IIFLW the edge it has today in the Indian wealth management industry.

How rapidly is the private banking sector developing in India, and what particular trends and client preferences have you seen emerging recently? we need to change our value proposition to meet market demands? What new things will our clients experience this year with us? What innovative products and what higher service standards can we offer them? Another thing that has given us the edge is the ability to spot trends. You don’t always have to do something completely new. Most of the time, it is about identifying trends early and capitalizing on

Human psychology and investor behaviour are the same world over. Markets are generally driven by greed and fear wherever you are. However, the private banking industry in, say, the US or UK or Switzerland is far more developed than in India in terms of product sophistication, longevity of relationships and client involvement. Nevertheless, we have seen products moving up the sophistication curve, as the regulators give product

manufacturers greater flexibility. In particular, we have seen the emergence of family offices over the past six to seven years. This has set the bar high for players as a family office brings in a whole new dimension in terms of client servicing, reporting and the offering of unbiased advice. The arrival of family offices has created steep entry barriers for new advisers, making the existing client-private bank relationship stronger. We hope that this will lead to longerterm relationships as the client will ultimately consolidate wealth through these family offices, which in turn will become gatekeepers as the process involves high levels of trust and confidentiality. Another trend we see is client involvement in decision-making. Clients today have a greater understanding of products and are more willing to experiment with new product types. For us, as advisers, it is an opportunity for product innovation. In India, the current generation is wellread, educated abroad and has a keener understanding of capital markets. As a result, unlike say 15 years ago, most of our clients today understand what they are buying into and will often ask us for product simulations or reiterations or will ask for the global track record of similar products. This is part of a really big transformation in India’s wealth management industry. It means that there must be greater product

Sponsored chapter

Karan Bhagat, MD and CEO, IIFL Private Wealth

transparency and forces product manufacturers to innovate faster.

What kind of specific services or products does IIFLW offer clients to set yourselves apart from your competitors? When we take a client on board at IIFLW, we ask a lot of questions about their financial goals, their family’s financial interests, their investment horizon, their past experience of investing and their preferences for products and services. The idea is to meet the client and know them well enough for us to create sustainable, achievable, bespoke financial plans. We don’t believe that a model portfolio-based allocation works for the ultra-high-net-worth clients we work with. Each client is unique. One of the biggest responsibilities with bespoke client solutions is to provide regular reporting and monitoring. This involves monitoring product performance and adjusting portfolios to market environment, when needed. This kind of dynamism and speed gives us an edge. The other thing that we got right with our team members is the spirit of end-to-end ownership responsibility. Our advisers take end-

to-end responsibility for delivering the firm’s value proposition to the client. Each adviser behaves not as an employee but as an owner of the business, and they do everything in their power to make a success of that business.

What potential do you see for India’s private wealth sector and how fast do you think it will grow? We are very upbeat on India’s private banking industry. The World Wealth Report published by Capgemini and RBC Wealth Management recently ranked India 16th in the list of countries with the biggest HNWI population. The report said that while robust growth is expected in most regions, Asia-Pacific will be at the forefront with an anticipated 9.8% annual growth rate. As a result, the region will be the largest HNWI market by population in 2014 and by wealth by 2015.

What advice would you offer to international investors looking to India as a strategic investment destination? We think India as a whole is a highly attractive destination for investors right now. We favour high-quality

businesses which show very high levels of corporate governance. To that extent, we are sector-agnostic. We are stock pickers. However, generally speaking we like banking, PSU and domestic cyclical as themes. The domestic consumption story is strong. Auto and auto ancillary industries, the cement industry, hospitality and travel and the media sectors should perform well. We like the mid and small cap space. But because of market capitalization constraints and this area being under-researched, most FIIs may not be able to participate in many of the mid and small caps. Last year, we saw GOI liberalizing the FII limit in debt and we saw enthusiastic participation by FIIs in debt auctions. The yields are attractive and FIIs should make reasonable returns on this segment in the months to come.

The investment mood in India at the moment, with its newfound financial and political stability, appears extremely upbeat. How do you see the country’s economic prospects in the months and years ahead? India’s 2014 general election defied all predictions and after a long time a single party has secured a majority. Political stability has created a conviction among market players that India’s new government is well positioned to pursue reforms and there will be a strong rebound in economic growth. With a decisive mandate, the National Democratic Alliance government can implement strong reforms and get the economy back on track, which will attract additional inflows into equities. In 2012 and 2013 FII inflows averaged $22 billion annually, and this year up to 30 June we have received around $10 billion. This figure can significantly rise, as it is still around the same run-rate of the past two

“We are looking at a rally where tripledigit earning from stock markets can be possible for long-term investors. We think this is the beginning of very good times for India”

years. Further, domestic household savings into equity capital markets have dipped from 7.3% in fiscal year 2008 to a dismal 0.5% in FY 2013. Both domestic investors and FIIs are expected to increase allocations over time. The outlook is highly positive. We are just a couple of months into what we believe will be a multi-year bull run and investors should not worry about the 20-25% upside that has already taken place in the market. Look at the larger picture and don’t miss the wood for the trees. We are not talking about 20-40% return in this rally. We are looking at a rally where triple-digit earning from stock markets can be possible for long-term investors. We think this is the beginning of very good times for India.


17

ICBC

15 9

ANZ

Wealth Management

18

Barclays

16

Goldman Sachs

16

4


19

Julius Baer

17

Julius Baer

17

ICBC

20

HDFC

18

Societe Generale

18

China Minsheng Bank

21

Maybank

19

Merrill Lynch

19

Societe Generale

22

Shinhan

Wealth Management

20

ABN AMRO

23

ANZ

20

DBS Bank

21


24=

China CITIC Bank

21

Bank of Communications

22

Daiwa Securities

24=


22

KEB

23

Kotak Mahindra

Fixed income portfolio management

23

Maybank

24

Maybank

24


25

China CITIC Bank

2014 2013

25


Precious metals investment

8

1 2 UBS

Lending/financing Solutions

2014 2013

2 1 Citi

2014 2013

1

5

Credit Suisse

3 3 HSBC

1

2

4

Goldman Sachs

4

Deutsche Bank

2 1 Citi

3 1 Citi

5

BNP Paribas

3 4 UBS

4 3 UBS

6

Barclays

4 3 HSBC

7

Credit Suisse

5

4

7

10

2

Credit Suisse

5

Morgan Stanley

Deutsche Bank

6

JPMorgan BNP Paribas

8 6 JPMorgan

6

SMBC

7

9

Goldman Sachs

7

Standard Chartered

8 10 Barclays

10


8 6 ICBC

9 2 HSBC

11

Standard Chartered

9

BNP Paribas

10

12

Merrill Lynch

10

Mizuho

11

Nomura

Wealth Management

11

DBS Bank

12

Bank of China

13

ICBC

12

JPMorgan

13

Merrill Lynch

14

Kotak Mahindra

13

Bank of China

Wealth Management

15


14

Barclays

14

Societe Generale

16


15


15

ANZ

Lynch PB Securities

16


16

ABN AMRO

17

Morgan Stanley

17

Bank of East Asia

17


18


18

MUFG

18

Kotak Mahindra

19

Bank of China

19

ABN AMRO

19

Julius Baer

20 5

Nomura

20

Morgan Stanley

20

Anand Rathi

21


21

ANZ

21

China Minsheng Bank

22

Societe Generale

22

HDFC

22

Daiwa Securities

23

UOB

23


23

BlackRock

24


24

Goldman Sachs

24

Mizuho

25

ABN AMRO

25

Maybank

25 6

ICBC

9=

9=

5

8

7 8

Deutsche Bank

Foreign exchange

Commodities Investment

Real estate investment

2014 2013

2014 2013

2014 2013

1 1 Citi

1

2 2 HSBC

2 1 Citi

2

3

3

JPMorgan

3 1 HSBC

4 5 UBS

4

Credit Suisse

4

5

7

Credit Suisse

5

Morgan Stanley

5

Morgan Stanley

6

4

Bank of China

6 6 UBS

6

Credit Suisse

7

6

Standard Chartered

7

Barclays

7

JPMorgan

8

BNP Paribas

8

Deutsche Bank

8 9 UBS

9

Bank of East Asia

9

BNP Paribas

9

DBS Bank

10

Barclays

10

HSBC

10


11

Morgan Stanley

11

Standard Chartered

11

ICBC

12

JPMorgan

12 5

Nomura

12

7

ICICI Bank

13


13

7

Anand Rathi

13

5

Kotak Mahindra

Lynch PB Securities

14

8

Bank of China

14

BNP Paribas


15

Merrill Lynch

15

Standard Chartered

3

14

14

Deutsche Bank



2

9

Goldman Sachs


1 4 Citi

10

2

Goldman Sachs Deutsche Bank

www.euromoney.com

02/09/2014 09:50


Giving China’s wealthiest a head start China Merchants Bank (CMB) Private Banking manages the wealth of some of the country’s richest families – and is helping them tap global markets by offering a high-quality service that meets their needs, wherever they are in the world. Executive vice president Liu Jianjun outlines the bank’s strategies for success Private banking has grown rapidly in recent years in China. What factors are driving that growth? Wealth creation in China has been robust. The number of millionaire households rose from 1.5 million in 2012 to 2.4 million in 2013, surpassing Japan and making China the country with the second biggest population of millionaires. That trend is expected to continue. The 2014 Global Wealth report by BCG (Boston Consulting Group) predicts that private wealth in China will increase from $22 trillion in 2013 to $40 trillion in 2018.

What emerging trends do you see in the private banking sector and what kind of new products and services are clients demanding? The demands of high-net-worth individuals (HNWIs) in China have become more complex and diversified. In response to this trend, CMB Private Banking in 2012 launched a family office service for people with total assets of over RMB500 million and RMB50 million under CMB management. This service package provides integrated management for family financial assets and debts by customizing unique wealth planning solutions, including maintenance and appreciation of value, risk isolation and wealth allocation. In August 2013, CMB developed a further service – a wealth inheritance family office – to provide customized wealth protection and inheritance plans for high-net-worth families and integrated financial solutions such as family trusts, wealth inheritance, tax planning, legal

Liu Jianjun, executive vice president, China Merchants Bank

consulting and insurance planning for clients. The first domestic Family Wealth Inheritance Trust was set up in May 2013. Currently, the number of contracted clients is 30, with total managed assets of RMB600 million. There are more than 200 further potential clients among our customers. CMB has also started to promote discretionary trust services in China, which further enhance the profit margin of banking wealth management.

What is the risk appetite of HNWI clients in view of the uncertain global economic climate? CMB and Bain & Company jointly published the 2013 China Private Wealth Report. The report found China’s private wealth market has increased steadily and offers considerable potential. It also found that China’s HNWI clients today prioritize wealth protection and wealth inheritance and have a more mature and stable investment mindset. In addition, they increasingly prefer cross-border and diversified investment scenarios. All these trends provide us with a clear direction for the development of domestic private banking.

What particular products and services in private banking are most popular with your bank’s clients and why? Through seven years of development, CMB Private Banking has established a service system with professional investment consultant teams as its core advantage. We have improved product services and overall asset management capabilities, including market research, investment strategies, block asset allocation, product portfolio selection, and performance tracking and review. These services provide an open product platform that meets highend clients’ investment demands and helps them manage risks and accumulate wealth. To help our clients allocate assets, CMB Private Banking has developed an open product platform that currently leads China in terms of products and functions. By integrating the resources of a variety of brands and sectors, CMB Private Banking incorporates a wide range of high-quality financial products into the platform, including cash management/currency market, fixed income, equity, alternative and overseas investment products, to

provide comprehensive investment information and opportunities for our clients. Moreover, CMB Private Banking is the first in China to offer a global hotline service providing an instant wealth management service for its top-tier clients. Clients can call their private banker from anywhere in the world to complete transaction demands. After receiving the instructions, CMB immediately completes the transaction through its back-office system, enabling clients to react swiftly to everchanging markets. As well as providing customized services and completing financial product pre-sales processes, our private bankers can conduct sales procedures through the global service hotline when authorized by clients, providing a significant advantage over traditional face-toface banking.

What steps is CMB taking to maintain its competitive advantage in the private banking arena? In today’s information era, it is easy to imitate products and business innovations. It is only professional services that cannot be copied or surpassed that provide the basis for a true competitive advantage. CMB Private Banking has concentrated on a strategy of creating unique, market-leading investment consulting services. In addition, we concentrate on both training within the bank and attracting high-quality bankers from the market to maintain the extremely high standard of our investment consultant team. It is these strategies that continue to guide our growth.


16

ANZ

15

Standard Chartered

13

Julius Baer

17 3

HDFC

16


14


18

Julius Baer

17

Bank of China

15

19

Bank of China

18

Merrill Lynch

16

Merrill Lynch

20

ABN AMRO

Wealth Management

Wealth Management

21

Mizuho

19

ANZ

17

BNP Paribas

22

Bank of East Asia

20

ABN AMRO

18 8

Nomura

23


21


19

Societe Generale

24

Societe Generale

22

Edelweiss Capital

20


25

Nomura

23

CIMB

21

UOB

Private equity investment

24

China Minsheng Bank

22

Macquarie

2014 2013

25

Kotak Mahindra

23

Hana Bank

Managed futures

24


2 3 Citi

2014 2013

25

Shinhan

3 6 JPMorgan

1

2

Goldman Sachs

Luxury investments (non-art)

4 1 UBS

2

9

Morgan Stanley

2014 2013

1

8

2

6

Bank of China

5

Deutsche Bank

3 1 Citi

1 1 UBS

6

Morgan Stanley

4 5 JPMorgan

2 3 Citi 3

Credit Suisse

5

8

BNP Paribas

6 3 UBS

9

Standard Chartered

7

10

4

Kotak Mahindra

11

9

ICICI Bank

8

12

HSBC

9

13

ICBC

14 15

7

7

HSBC

2

Credit Suisse

4

Coutts

Merrill Lynch

5

Societe Generale

Wealth Management

6

BNP Paribas

Credit Suisse

7

JPMorgan

Deutsche Bank

8

Julius Baer

10


9 8 HSBC


Lynch PB Securities

10

Mizuho

Barclays

11

Standard Chartered

11

Pictet

16


12

Societe Generale

12

Deutsche Bank

17


13

ABN AMRO

13

DBS Bank

18 5

Nomura

14


14

Morgan Stanley

19=

Merrill Lynch

15

UOB

15

ICBC

Wealth Management

16

BNP Paribas

16

ABN AMRO

19=

DBS Bank

17

Barclays

17

Goldman Sachs

21

Julius Baer

18


18

Bank of China

22

Carlyle Group

19

Julius Baer

19

Standard Chartered

23


20

Bank of China

20

Wells Fargo

Lynch PB Securities

21

Commonwealth Bank

21

Nomura

24

Shinhan

22=


22

Shinhan

25

Bank of China

22=

Bank of East Asia

23


Structured products

24

Kotak Mahindra

24

ANZ

2014 2013

25 4

Nomura

25

Merrill Lynch

1 1 Citi

Hedge fund investment

Wealth Management

2

10

Goldman Sachs

2014 2013

Family office services

3

4

Credit Suisse

1 4 JPMorgan

2014 2013

8

10

6

4

9

5

7

4 3 UBS

2 1 Citi

1 1 UBS

5

BNP Paribas

3

2

6

Deutsche Bank

4 2 UBS

3 7 HSBC

Societe Generale

5

Credit Suisse

4 8 Citi

Deutsche Bank

5

2

7

16

Goldman Sachs

8

7 3

Goldman Sachs

3

Credit Suisse

8 5 Barclays

6

9 7 HSBC

7 5 HSBC

6

JPMorgan

10

Morgan Stanley

8

Morgan Stanley

7

Julius Baer

11

JPMorgan

9

Barclays

8

Standard Chartered

12

Nomura

10

Standard Chartered

9

13


11

ABN AMRO

10=

Pictet

Lynch PB Securities

12


10=

BNP Paribas

14

6


Lynch PB Securities

12

Nomura



10


2

4

Kotak Mahindra


www.euromoney.com

02/09/2014 09:50


13

Coutts

12

Julius Baer

13 8

Barclays

14

Deutsche Bank

13

SMBC

14

SMBC

15

Goldman Sachs

14 5

IL&FS

15

Merrill Lynch

16

Barclays

15

Goldman Sachs

Wealth Management

17

Client Associates

16

Barclays

16

Nomura

18

Myer Family Company

17

EFG

17

ANZ

19

Credit Agricole Private Banking

18

Coutts

18

Goldman Sachs

20=

Grant Thornton

19

Merrill Lynch

19

Coutts

20=

Mizuho

Wealth Management

20


22

Merrill Lynch

20


21

DBS Bank

Wealth Management

21

LGT

22

UOB

23

Northern Trust

22

Nomura

23

CIMB

24

LGT

23

ABN AMRO

24


25


24 6

ICBC

25

Shinhan

Kotak Mahindra

10

Inheritance and succession planning

25

Tax guidance and services

Corporate advisory for private banking clients

2014 2013

2014 2013

2014 2013

1 1 UBS

1 2 HSBC

2 2 HSBC

2

3 5 Citi

3 1 UBS

3

10

Deloitte

3

Credit Suisse

2 1 Citi 3 5 UBS

4

5

JPMorgan

5 7 KPMG

5 2 HSBC

6

Julius Baer

6 6 PricewaterhouseCoopers

6

Nomura

7

BNP Paribas

7

Ernst & Young

7

9

Goldman Sachs

7=

Deutsche Bank

5

Citi

1

Credit Suisse

4

4

JPMorgan

8 9 Barclays

8

JPMorgan

8

9

6

Merrill Lynch

9

Credit Suisse

9

Daiwa Securities

Wealth Management

10

Standard Chartered

10

Ernst & Young

10

Deutsche Bank

11

Nomura

11

Standard Chartered

11

Mizuho

12

Deutsche Bank

12

PricewaterhouseCoopers

12

Nomura

13=


13

BNP Paribas

13

ABN AMRO

13=

Mizuho

14

DBS Bank

14

Northern Trust

15


15 4

ICBC

15

MUFG

16

BNP Paribas

16

KPMG

16

Kotak Mahindra

17

Goldman Sachs

17

Merrill Lynch

17

Societe Generale

18

Morgan Stanley

Wealth Management

18

Standard Chartered

19

ABN AMRO

18

Deloitte

19


20

Julius Baer

19

Bank of China

20

Goldman Sachs

21

Hana Bank

20

Morgan Stanley

21

IL&FS

22

Bank of China

21


22

Bank of China

23

Shinhan

22=


23


24

CIMB

22=

Kotak Mahindra

24

LGT

25

Kotak Mahindra

24=


25

Coutts

Offshore services

24= 7=

SMBC

2014 2013

Islamic banking services

2014 2013

1 1 HSBC

2014 2013

1 4 HSBC

2 3 Citi

1 2 HSBC

2

3 2 UBS

2

4

5

Credit Suisse

3 5 Maybank

4 1 UBS

5

10

Deutsche Bank

4

5 9 JPMorgan

6

JPMorgan

5 3 CIMB

6

Mizuho

7

Standard Chartered

6

National Bank of Abu Dhabi

7

Northern Trust

8

BNP Paribas

7

Deutsche Bank

8

Deutsche Bank

9

ICBC

8

ORIX

9=

MUFG

10

ABN AMRO

9

BNP Paribas

9=

BNP Paribas

11

Bank of China

10

Qatar First Investment Bank

11

Standard Chartered

12

Julius Baer

11=

DBS Bank

10

4

Trust services

3

Credit Suisse

3 2 Citi

18



3

4

7

4


6

Citi Standard Chartered

www.euromoney.com

02/09/2014 09:51

11=

Nomura

14

Nomura

15

ABN AMRO

13

Credit Suisse

15=

ORIX

16

10

Merrill Lynch

14


15=

SMBC

Wealth Management

15

Barclays

17

Coutts

17

BNP Paribas

16

Abu Dhabi Commercial Bank

18

China Minsheng Bank

18

Morgan Stanley

17 9

UBS

19

Bank of China

19

MUFG

18

Arab Bank

20

Barclays

20

Daiwa Securities

19

Goldman Sachs

21

Julius Baer

21

Julius Baer

20

Qatar National Bank

22

Mizuho

22

Commerzbank

21

Is Bank

23

Macquarie

23=

China Minsheng Bank

22

Qatar International Islamic Bank

24=

ANZ

23=

SMBC

23=

RHB

24=

Maybank

25


23=

International Bank of Qatar

Art and Collectibles advisory

Corporate executives

25

Qatar Islamic Bank

2014 2013

2014 2013

10

2

Philanthropy services

1 1 UBS

2014 2013

2

4

Credit Suisse

1 1 Citi 2 2 HSBC

1 1 UBS

3 3 Citi

3 4 UBS

2 3 HSBC

4 6 HSBC

4

3 5 Citi

5 8 JPMorgan

5

JPMorgan

6

Societe Generale

6

Standard Chartered

5 7 JPMorgan

7

BNP Paribas

7

DBS Bank

6

Deutsche Bank

8 7 Coutts

8

Deutsche Bank

7

Coutts

9

Mizuho

9

Nomura

8

Goldman Sachs

10

Deutsche Bank

10

China CITIC Bank

9

BNP Paribas

11

Goldman Sachs

11

Goldman Sachs

10

Julius Baer

12

Pictet

12 3

HDFC

11

Nomura

13

Julius Baer

13= 8


12

Standard Chartered

14

Nomura

13=

SMBC

13 10 Barclays

15

Morgan Stanley

15

BNP Paribas

14

ANZ

16

DBS Bank

16

Morgan Stanley

15

Societe Generale

17

ICBC

17

ANZ

16

Mizuho

18

UOB

18

MUFG

17


19


19


18=

Safra

20


20

Merrill Lynch

18=

ABN AMRO

21

Hana Bank

Wealth Management

20


22

Lombard Odier

21


21

DBS Bank

23= 9

China Minsheng Bank

22

Kotak Mahindra

22

MUFG

23=

Hang Seng Bank

23

EFG

23

Bank of China

25

Shinhan

24

UOB

24

Shinhan

25


25


Specialized services Entrepreneurs

Yacht/Aircraft financing

2014 2013

2014 2013

2014 2013

1

4

2 8

4

Credit Suisse

8

Credit Suisse

9

Credit Suisse

Inherited wealth and business 1 1 UBS

2 2 HSBC

2

2 1 UBS

3 4 UBS

3 5 HSBC

3 4 Citi

4 1 Citi

4

4

BNP Paribas

5

Deutsche Bank

5 2 Citi

5

HSBC

6

Goldman Sachs

6

BNP Paribas

6

Deutsche Bank

7

JPMorgan

7

Deutsche Bank

7

JPMorgan

8

Standard Chartered

8=


8


9 6 Nomura

8=

Mizuho

9

Societe Generale

10


10

4

Merrill Lynch

10


11

3


Wealth Management

11

Goldman Sachs

12

5

Bank of China

11

7

Kotak Mahindra

12

MUFG

13

DBS Bank

12

Nomura

13

Morgan Stanley

14

Kotak Mahindra

13

Julius Baer

1

10

3 8

Credit Suisse



7


3

8

Credit Suisse JPMorgan

www.euromoney.com

19

02/09/2014 09:51





15 16

Goldman Sachs

2014 2013

1

17

LGT

1

18

Standard Chartered


2014 2013

19

DBS Bank

2014 2013

1

20

Wells Fargo

1=

Goldman Sachs

21

UOB

1=

Morgan Stanley

22

MUFG

2014 2013

23

Pictet


24


2014 2013


Lynch PB Securities

1

Hana Bank

Foreign exchange

1

By Country China Best private banking services overall

2014 2013


Lending/Financing Solutions


2014 2013

2014 2013

2014 2013

14

9=

25

1

1

2

4

Bank of China

HSBC

2014 2013 HSBC

Offshore services 3

HSBC

Corporate advisory for private banking clients 1

Credit Suisse

2014 2013 HSBC

1=

1

Bank of China

2014 2013

1=

5

HSBC

1

1

UBS


1

Credit Suisse


Art and Collectibles advisory 2014 2013

UBS

1

UBS

3

2

Bank of China

2014 2013

4

4

ICBC

1

5

5

UBS


6

7

HSBC

2014 2013

Citi

1=

Goldman Sachs

2014 2013

China Minsheng Bank

1=

Morgan Stanley

1

9

JPMorgan



10

Goldman Sachs

2014 2013

2014 2013

7 8

8

Goldman Sachs

1

3

UBS

Specialized services Entrepreneurs Credit Suisse


1

2014 2013


Inherited wealth and business

2014 2013

2014 2013

1

1


Goldman Sachs


1

2014 2013

Structured products

1

Credit Suisse

Goldman Sachs

2014 2013

1

1

HSBC

4=

UBS

India Best private banking services overall


1

2014 2013

Managed futures

2014 2013

2014 2013

1

4


2

1

Kotak Mahindra

3

2

Merrill Lynch

3

HDFC

1

4

ICBC

Goldman Sachs


1

2014 2013


1

UBS

Morgan Stanley

Wealth Management

2014 2013


1

JPMorgan

4

2014 2013


5

2014 2013

6

5

Citi Deutsche Bank

1

Credit Suisse

Net-worth-specific services Super affluent clients ($500,000 to $1 million)

1

2014 2013

1=

1

3


BNP Paribas

7

7


8

8

ICICI Bank

2014 2013

9

9

HSBC

Credit Suisse

10

6

Barclays

UBS


1=

4=

1=

UBS



2014 2013

2014 2013

2014 2013


1

Credit Suisse

1

4

UBS

1

5


2014 2013


Trust services

1

2014 2013


2014 2013

1

1

20


HSBC

UBS



HSBC

2014 2013 1


5

2


www.euromoney.com

02/09/2014 11:46



3

3

HSBC

2014 2013

2014 2013

4

4

Citi

1

1

Kotak Mahindra

1

2


5

Standard Chartered



6

6


2014 2013

2014 2013

7

8

AmBank

1

1

Kotak Mahindra

1=


1=

2014 2013

1

1

1

HDFC

High Net Worth I clients ($1 million to $10 million) 2014 2013

1=

BNP Paribas

8

Citi

9

JPMorgan 9

UOB


10

2014 2013


1

Kotak Mahindra

Hwang-DBS

2014 2013


1

2014 2013

2014 2013

1

2=

Barclays

1

Maybank

Privacy and security 1

1

Maybank

Trust services



2014 2013

2014 2013

2014 2013



2014 2013

2014 2013

1

1

1

2

Kotak Mahindra

Kotak Mahindra

1

1

IL&FS

1

1

Maybank


1

Offshore services


2014 2013

2014 2013

2014 2013

1

1

2

KPMG

Merrill Lynch

1

Wealth Management



2014 2013

2014 2013

Citi

1

1

1

1

1=

4=


2014 2013


1=

1

Kotak Mahindra

1

2014 2013

2014 2013

1

3

2


Islamic banking services 1

Citi

Maybank


Kotak Mahindra

1

Maybank

1

Maybank

High Net Worth I clients ($1 million to $10 million) 2014 2013

Foreign exchange


1

2014 2013

2014 2013


1

1

Citi

1

2=

ICICI Bank

1



2014 2013

2014 2013

2014 2013

1

1

Maybank

Maybank




2014 2013

2014 2013

2014 2013

1

1

1

2

Deutsche Bank

Anand Rathi

Precious metals investment 2014 2013 1

5


1

1

1

2

Citi

Julius Baer

1

1


2014 2013

1

2014 2013 1


1

2014 2013


2014 2013

2014 2013

1

1

1


2


2

2014 2013


2014 2013

2014 2013

1

1

Kotak Mahindra

HDFC

1

1

2014 2013

2014 2013

Managed futures

Malaysia Best private banking services overall

2014 2013

2014 2013

2014 2013

1

1

1

2

Citi




Kotak Mahindra

1

1

Maybank

2

2

CIMB


Maybank


Structured products

2

Maybank

Foreign exchange

1

1

Maybank


Private equity investment 1

Maybank


1

1

Maybank

Commodities Investment 1

1

Maybank

www.euromoney.com

21

02/09/2014 11:46


1=

BNP Paribas



1=

HSBC

2014 2013

2014 2013


1




2014 2013

2014 2013

1

5=

Maybank

3=

DBS Bank

1=


2014 2013

1=

Societe Generale

1

1=

Standard Chartered

2014 2013



2014 2013

2014 2013


1

3

Maybank

1

HSBC

1

Maybank

1

5=

Structured products


2014 2013

2014 2013

2014 2013

1


DBS Bank

Managed futures



2014 2013

2014 2013

2014 2013

1

1

1

Maybank

Citi

1=

1

Maybank

1

DBS Bank


Barclays HSBC

2014 2013

1

2014 2013 1=

1

Citi

Philippines Best private banking services overall

Hedge fund investment 1=

1

2014 2013 Citi


1

1

BDO Private Bank

Foreign exchange

2014 2013

2

6

Citi

2014 2013

1=

Citi

3

9


1

1=

Maybank

4

DBS Bank



5=

Bank of the Philippine Islands

2014 2013

2014 2013

5=

Standard Chartered

1=

Citi

7=

ANZ

1=

Maybank


7=

J. Safra Sarasin


9=

8

Credit Suisse

2014 2013

2014 2013

9=

4

HSBC

1

9=

3

JPMorgan


1

1

CIMB

5=

CIMB

BNP Paribas

2=

Trust services


2014 2013

2014 2013

2014 2013

1

1

4=

CIMB

1

1

BDO Private Bank

4=


2014 2013

2014 2013

2014 2013

1

1

HSBC

1

ANZ

ANZ

Structured products

Offshore services


2014 2013

2014 2013

2014 2013

1

1

4=

Citi

1

Bank of the Philippine Islands

Citi


Tax guidance and services 1

Goldman Sachs

BNP Paribas

Managed futures



2014 2013

2014 2013

1

2014 2013

1=

Goldman Sachs


1=

Standard Chartered

2014 2013

1

2=

CIMB

1

Goldman Sachs



1

2014 2013

2014 2013


1

1

Maybank

1

J. Safra Sarasin


Goldman Sachs

2014 2013 1

4=

Citi

2014 2013 1

22

4

Citi




www.euromoney.com

02/09/2014 11:47




2014 2013


2014 2013


Tax guidance and services 2014 2013 1

Deloitte

1

Ernst & Young

1

1


2014 2013

2014 2013

1

4

DBS Bank

Citi

2014 2013 1

1

2014 2013 1

1

2014 2013 1

Art and Collectibles advisory 2014 2013

2014 2013

2014 2013

BNP Paribas

1

BNP Paribas

1

1

UBS

UBS



1

UBS

1

UBS

Trust services 1

2

UBS

Specialized services Corporate executives



2014 2013

2014 2013

1

1

2

HSBC

1

1

UBS

2014 2013 1

Singapore Best private banking services overall


2014 2013

2014 2013

1

2014 2013

1

4

Citi

1

1

UBS


2

2

Credit Suisse

2014 2013

3

3

Citi

1

4

7

DBS Bank

Foreign exchange

2014 2013

5

6

JPMorgan

2014 2013

1

6

4

HSBC

1

Julius Baer


2014 2013

8

5

Deutsche Bank

2014 2013

1

9

8


1

ABN AMRO

7

1=

1

2014 2013 1

Citi

DBS Bank

1

1

1

2014 2013 1

2014 2013

1

2


2014 2013

2014 2013

1

2014 2013

1

1

DBS Bank

Credit Suisse



1

UBS


2014 2013 Goldman Sachs

Maybank


Commodities Investment 1

Credit Suisse


Best local private bank

10

UBS


1

Citi

UBS

Offshore services

1

UBS




2014 2013

2014 2013

2014 2013

1

1

1

UBS

1

1

Goldman Sachs

DBS Bank

1

UBS




2014 2013

2014 2013

2014 2013

1

1

1=

UBS

3

Goldman Sachs

1

4

UBS

Structured products



2014 2013

2014 2013

2014 2013

1

1

1

1

1

UBS

UBS

1

2014 2013

2014 2013

1

1

UBS

1

1

UBS

Managed futures

Bespoke Wealth Planning 1

UBS

3=

Goldman Sachs

Hedge fund investment 2014 2013 1



3=

UBS


www.euromoney.com

23

02/09/2014 11:47

Private banking data analysis

Total Client (non-institutional) AUM by region 2009-2013 7,000 6,000

$bln

5,000

2009

4,000

2010 2011

3,000

2012 2,000

2013

1,000 0

Western Europe

North America

Asia

Latin America

Source: Euromoney Research Group

Total client (non-institutional) AUM - selected countries

Total Client (non-institutional) AUM - Asia 2009-2012

700

2,500

600

2,000

500 1,500 $bln

$bln

400 300

1,000

200

500

100 0

0 China

Brazil


Hong Kong

Korea

Taiwan

Change in PB net income 2012-2013

2010

2011

2012

2013

Change in net new assets 2012-2013 25

45 40

20

35

15

30 %

2009


10

25 %

20

5

15

0

10 -5

5 0

Brazil

China

India

Turkey

Russia


-10 Asia

Latin America

North America

Western Europe


Growth in gross revenue 2012-2013 - selected countries

Growth in absolute number of PB clients y-o-y 2012-2013 - BRIC

45 20

40 35

15

30 % 25

% 10

20 15 10

5

5 0

Japan

Singapore

China

Hong Kong Malaysia

Source: Euromoney Research Group 24


Taiwan

Korea

0

China



India

Brazil

Russia

www.euromoney.com