been built up over decades. âCiti's private banking business in ..... 38. MUFG. 39. UOB. 40. 9. Bank of Communications
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.
A Euromoney Magazine sponsored statement
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.
FA_MAY033014(Euromoney)v09.pdf
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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
China Merchants Bank
6
Deutsche Bank
6
JPMorgan
14
Standard Chartered
China Merchants Bank
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
IIFL Private Wealth Management
13
Mizuho
21
DBS Bank
Goldman Sachs
14
IIFL Private Wealth Management
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
Bank of Singapore (OCBC)
6
Julius Baer
4 4 Citi
Mitsubishi UFJ Merrill
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
China Merchants Bank
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
IIFL Private Wealth Management
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
Mitsubishi UFJ Merrill
MUFG
22
Bank of China
Lynch PB Securities
UOB
23
MUFG
20
Hana Bank
Bank of Communications
24
China Merchants Bank
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
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CORRECT 0914 PB Survey and Charts 14.indd 10
6
4 5
1
7
5 6
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Credit Suisse
Credit Suisse
Credit Suisse Deutsche Bank
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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
IIFL Private Wealth Management
25
SMBC
5
JPMorgan
6
Barclays
7
Deutsche Bank
8
China Merchants Bank
3 3 UBS
9
Mizuho
4 1 HSBC
10
BNP Paribas
5
BNP Paribas
2014 2013
Kotak Mahindra
6
Mitsubishi UFJ Merrill
1 1 UBS
12
IIFL Private Wealth Management
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
China Merchants Bank
9
Nomura
19
Hana Bank
Mizuho
10
China Merchants Bank
Deutsche Bank
11
IIFL Private Wealth Management
12
7
Merrill Lynch
Bank of Singapore (OCBC)
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
SMBC Barclays Wealth
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
Mitsubishi UFJ Merrill
1 2 UBS
Lynch PB Securities
2
25
5
Standard Chartered
4
DBS Bank
5
China Merchants Bank
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
Mitsubishi UFJ Merrill
5 3 HSBC
1 4 Citi
Lynch PB Securities
6
Deutsche Bank
2
Goldman Sachs
Goldman Sachs
3
JPMorgan
8
3
11
Nomura
12
Bank of Singapore (OCBC)
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
SMBC Barclays Wealth
BNP Paribas
10
3
Merrill Lynch
19
ICICI Bank
Julius Baer
Wealth Management
20
Agricultural Bank of China
Kotak Mahindra
11
10
Kotak Mahindra
21
China Minsheng Bank
China Construction Bank
12
6
Bank of China
China Merchants Bank
13
BNP Paribas
Standard Chartered
14
IIFL Private Wealth Management
DBS Bank
15
Standard Chartered
Mizuho
16
Deutsche Bank
9
22
IIFL Private Wealth Management
23
Hang Seng Bank
24
Shinhan
25
China CITIC Bank
Euromoney Asia Private Banking Review
CORRECT 0914 PB Survey and Charts 14.indd 11
13 14 15 16 17
9 7
18 19 20=
© Copyright Euromoney
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.
Asia private banking survey 2014
17
ICBC
15 9
ANZ
Wealth Management
18
Barclays
16
Goldman Sachs
16
4
IIFL Private Wealth Management
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
Bank of Singapore (OCBC)
24=
China CITIC Bank
21
Bank of Communications
22
Daiwa Securities
24=
China Construction Bank
22
KEB
23
Kotak Mahindra
Fixed income portfolio management
23
Maybank
24
Maybank
24
Agricultural Bank of China
25
China CITIC Bank
2014 2013
25
Bank of Singapore (OCBC)
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
IIFL Private Wealth Management
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
Bank of Singapore (OCBC)
14
Barclays
14
Societe Generale
16
Mitsubishi UFJ Merrill
15
Bank of Singapore (OCBC)
15
ANZ
Lynch PB Securities
16
Agricultural Bank of China
16
ABN AMRO
17
Morgan Stanley
17
Bank of East Asia
17
IIFL Private Wealth Management
18
SMBC Barclays Wealth
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
Agricultural Bank of China
21
ANZ
21
China Minsheng Bank
22
Societe Generale
22
HDFC
22
Daiwa Securities
23
UOB
23
China Construction Bank
23
BlackRock
24
China Construction Bank
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
IIFL Private Wealth Management
11
Morgan Stanley
11
Standard Chartered
11
ICBC
12
JPMorgan
12 5
Nomura
12
7
ICICI Bank
13
Mitsubishi UFJ Merrill
13
7
Anand Rathi
13
5
Kotak Mahindra
Lynch PB Securities
14
8
Bank of China
14
BNP Paribas
China Merchants Bank
15
Merrill Lynch
15
Standard Chartered
3
14
14
Deutsche Bank
Euromoney Asia Private Banking Review
CORRECT 0914 PB Survey and Charts 14.indd 14
2
9
Goldman Sachs
© Copyright Euromoney
1 4 Citi
10
2
Goldman Sachs Deutsche Bank
www.euromoney.com
02/09/2014 09:50
A Euromoney Magazine sponsored statement
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.
Asia private banking survey 2014
16
ANZ
15
Standard Chartered
13
Julius Baer
17 3
HDFC
16
SMBC Barclays Wealth
14
Agricultural Bank of China
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
Bank of Singapore (OCBC)
21
Agricultural Bank of China
19
Societe Generale
24
Societe Generale
22
Edelweiss Capital
20
IIFL Private Wealth Management
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
China Merchants Bank
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
Mitsubishi UFJ Merrill
9 8 HSBC
Agricultural Bank of China
Lynch PB Securities
10
Mizuho
Barclays
11
Standard Chartered
11
Pictet
16
IIFL Private Wealth Management
12
Societe Generale
12
Deutsche Bank
17
China Merchants Bank
13
ABN AMRO
13
DBS Bank
18 5
Nomura
14
SMBC Barclays Wealth
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
IIFL Private Wealth Management
18
Bank of China
22
Carlyle Group
19
Julius Baer
19
Standard Chartered
23
Mitsubishi UFJ Merrill
20
Bank of China
20
Wells Fargo
Lynch PB Securities
21
Commonwealth Bank
21
Nomura
24
Shinhan
22=
Agricultural Bank of China
22
Shinhan
25
Bank of China
22=
Bank of East Asia
23
China Merchants Bank
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
Mitsubishi UFJ Merrill
11
ABN AMRO
10=
Pictet
Lynch PB Securities
12
Mitsubishi UFJ Merrill
10=
BNP Paribas
14
6
IIFL Private Wealth Management
Lynch PB Securities
12
Nomura
Euromoney Asia Private Banking Review
CORRECT 0914 PB Survey and Charts 14.indd 16
10
© Copyright Euromoney
2
4
Kotak Mahindra
IIFL Private Wealth Management
www.euromoney.com
02/09/2014 09:50
Asia private banking survey 2014
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
IIFL Private Wealth Management
22
Merrill Lynch
20
IIFL Private Wealth Management
21
DBS Bank
Wealth Management
21
LGT
22
UOB
23
Northern Trust
22
Nomura
23
CIMB
24
LGT
23
ABN AMRO
24
Bank of Singapore (OCBC)
25
China Merchants Bank
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=
Agricultural Bank of China
13
BNP Paribas
13
ABN AMRO
13=
Mizuho
14
DBS Bank
14
Northern Trust
15
IIFL Private Wealth Management
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
IIFL Private Wealth Management
20
Julius Baer
19
Bank of China
20
Goldman Sachs
21
Hana Bank
20
Morgan Stanley
21
IL&FS
22
Bank of China
21
China Merchants Bank
22
Bank of China
23
Shinhan
22=
IIFL Private Wealth Management
23
China Merchants Bank
24
CIMB
22=
Kotak Mahindra
24
LGT
25
Kotak Mahindra
24=
Agricultural Bank of China
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
Euromoney Asia Private Banking Review
CORRECT 0914 PB Survey and Charts 14.indd 18
3
4
7
4
© Copyright Euromoney
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
Bank of Singapore (OCBC)
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
Bank of Singapore (OCBC)
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
China Merchants Bank
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
Agricultural Bank of China
19
Bank of Singapore (OCBC)
19
Agricultural Bank of China
18=
Safra
20
China Merchants Bank
20
Merrill Lynch
18=
ABN AMRO
21
Hana Bank
Wealth Management
20
Bank of Singapore (OCBC)
22
Lombard Odier
21
Bank of Singapore (OCBC)
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
IIFL Private Wealth Management
25
Credit Agricole Private Banking
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=
China Merchants Bank
8
Agricultural Bank of China
9 6 Nomura
8=
Mizuho
9
Societe Generale
10
IIFL Private Wealth Management
10
4
Merrill Lynch
10
Credit Agricole Private Banking
11
3
China Merchants Bank
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
Euromoney Asia Private Banking Review
CORRECT 0914 PB Survey and Charts 14.indd 19
7
© Copyright Euromoney
3
8
Credit Suisse JPMorgan
www.euromoney.com
19
02/09/2014 09:51
Asia private banking survey 2014
Bank of Singapore (OCBC)
Ultra High Net Worth clients (Greater than $30 million)
Tax guidance and services
15 16
Goldman Sachs
2014 2013
1
17
LGT
1
18
Standard Chartered
Equity portfolio management
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
Fixed income portfolio management
24
Mitsubishi UFJ Merrill
2014 2013
Islamic banking services
Lynch PB Securities
1
Hana Bank
Foreign exchange
1
By Country China Best private banking services overall
2014 2013
Philanthropy services
Lending/Financing Solutions
Yacht/Aircraft financing
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
China Merchants Bank
1
Credit Suisse
Commodities Investment
Art and Collectibles advisory 2014 2013
UBS
1
UBS
3
2
Bank of China
2014 2013
4
4
ICBC
1
5
5
UBS
Precious metals investment
6
7
HSBC
2014 2013
Citi
1=
Goldman Sachs
2014 2013
China Minsheng Bank
1=
Morgan Stanley
1
9
JPMorgan
Real estate investment
Corporate executives
10
Goldman Sachs
2014 2013
2014 2013
7 8
8
Goldman Sachs
1
3
UBS
Specialized services Entrepreneurs Credit Suisse
Relationship management
1
2014 2013
Private equity investment
Inherited wealth and business
2014 2013
2014 2013
1
1
China Merchants Bank
Goldman Sachs
Privacy and security
1
2014 2013
Structured products
1
Credit Suisse
Goldman Sachs
2014 2013
1
1
HSBC
4=
UBS
India Best private banking services overall
Range of investment products
1
2014 2013
Managed futures
2014 2013
2014 2013
1
4
IIFL Private Wealth Management
2
1
Kotak Mahindra
3
2
Merrill Lynch
3
HDFC
1
4
ICBC
Goldman Sachs
Range of advisory services
1
2014 2013
Hedge fund investment
1
UBS
Morgan Stanley
Wealth Management
2014 2013
Bespoke Wealth Planning
1
JPMorgan
4
2014 2013
Luxury investments (non-art)
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
China Merchants Bank
BNP Paribas
7
7
Family office services
8
8
ICICI Bank
2014 2013
9
9
HSBC
Credit Suisse
10
6
Barclays
UBS
Relationship management
1=
4=
1=
UBS
High Net Worth I clients ($1 million to $10 million)
Inheritance and succession planning
2014 2013
2014 2013
2014 2013
Privacy and security
1
Credit Suisse
1
4
UBS
1
5
IIFL Private Wealth Management
2014 2013
High Net Worth II clients ($10 million to $30 million)
Trust services
1
2014 2013
Range of investment products
2014 2013
1
1
20
IIFL Private Wealth Management
HSBC
UBS
Euromoney Asia Private Banking Review
CORRECT 0914 PB Survey and Charts 14.indd 20
HSBC
2014 2013 1
© Copyright Euromoney
5
2
IIFL Private Wealth Management
www.euromoney.com
02/09/2014 11:46
Range of advisory services
Hedge fund investment
3
3
HSBC
2014 2013
2014 2013
4
4
Citi
1
1
Kotak Mahindra
1
2
IIFL Private Wealth Management
5
Standard Chartered
Bespoke Wealth Planning
Luxury investments (non-art)
6
6
Bank of Singapore (OCBC)
2014 2013
2014 2013
7
8
AmBank
1
1
Kotak Mahindra
1=
Net-worth-specific services Super affluent clients ($500,000 to $1 million)
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
Family office services
10
2014 2013
Relationship management
1
Kotak Mahindra
Hwang-DBS
2014 2013
Inheritance and succession planning
1
2014 2013
2014 2013
1
2=
Barclays
1
Maybank
Privacy and security 1
1
Maybank
Trust services
Range of investment products
High Net Worth II clients ($10 million to $30 million)
2014 2013
2014 2013
2014 2013
Tax guidance and services
Range of advisory services
2014 2013
2014 2013
1
1
1
2
Kotak Mahindra
Kotak Mahindra
1
1
IL&FS
1
1
Maybank
Ultra High Net Worth clients (Greater than $30 million)
1
Offshore services
Bespoke Wealth Planning
2014 2013
2014 2013
2014 2013
1
1
2
KPMG
Merrill Lynch
1
Wealth Management
Equity portfolio management
Corporate advisory for private banking clients
2014 2013
2014 2013
Citi
1
1
1
1
1=
4=
IIFL Private Wealth Management
2014 2013
Fixed income portfolio management
1=
1
Kotak Mahindra
1
2014 2013
2014 2013
1
3
2
IIFL Private Wealth Management
Islamic banking services 1
Citi
Maybank
Net-worth-specific services Super affluent clients ($500,000 to $1 million)
Kotak Mahindra
1
Maybank
1
Maybank
High Net Worth I clients ($1 million to $10 million) 2014 2013
Foreign exchange
Philanthropy services
1
2014 2013
2014 2013
High Net Worth II clients ($10 million to $30 million)
1
1
Citi
1
2=
ICICI Bank
1
Lending/Financing Solutions
Yacht/Aircraft financing
2014 2013
2014 2013
2014 2013
1
1
Maybank
Maybank
Commodities Investment
Art and Collectibles advisory
Ultra High Net Worth clients (Greater than $30 million)
2014 2013
2014 2013
2014 2013
1
1
1
2
Deutsche Bank
Anand Rathi
Precious metals investment 2014 2013 1
5
IIFL Private Wealth Management
1
1
1
2
Citi
Julius Baer
1
1
Equity portfolio management
2014 2013
1
2014 2013 1
Real estate investment
1
2014 2013
Corporate executives
2014 2013
2014 2013
1
1
1
IIFL Private Wealth Management
2
IIFL Private Wealth Management
2
2014 2013
Inherited wealth and business
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
IIFL Private Wealth Management
Euromoney Asia Private Banking Review
CORRECT 0914 PB Survey and Charts 14.indd 21
Kotak Mahindra
1
1
Maybank
2
2
CIMB
© Copyright Euromoney
Maybank
Lending/Financing Solutions
Structured products
2
Maybank
Foreign exchange
1
1
Maybank
Fixed income portfolio management
Private equity investment 1
Maybank
Specialized services Entrepreneurs
1
1
Maybank
Commodities Investment 1
1
Maybank
www.euromoney.com
21
02/09/2014 11:46
Asia private banking survey 2014
1=
BNP Paribas
Net-worth-specific services Super affluent clients ($500,000 to $1 million)
Real estate investment
1=
HSBC
2014 2013
2014 2013
Art and Collectibles advisory
1
High Net Worth I clients ($1 million to $10 million)
Precious metals investment
Yacht/Aircraft financing
2014 2013
2014 2013
1
5=
Maybank
3=
DBS Bank
1=
Bank of Singapore (OCBC)
2014 2013
1=
Societe Generale
1
1=
Standard Chartered
2014 2013
Private equity investment
Specialized services Entrepreneurs
2014 2013
2014 2013
High Net Worth II clients ($10 million to $30 million)
1
3
Maybank
1
HSBC
1
Maybank
1
5=
Structured products
Corporate executives
2014 2013
2014 2013
2014 2013
1
Bank of Singapore (OCBC)
DBS Bank
Managed futures
Inherited wealth and business
Ultra High Net Worth clients (Greater than $30 million)
2014 2013
2014 2013
2014 2013
1
1
1
Maybank
Citi
1=
1
Maybank
1
DBS Bank
Fixed income portfolio management
Barclays HSBC
2014 2013
1
2014 2013 1=
1
Citi
Philippines Best private banking services overall
Hedge fund investment 1=
1
2014 2013 Citi
Luxury investments (non-art)
1
1
BDO Private Bank
Foreign exchange
2014 2013
2
6
Citi
2014 2013
1=
Citi
3
9
Bank of Singapore (OCBC)
1
1=
Maybank
4
DBS Bank
Lending/Financing Solutions
Family office services
5=
Bank of the Philippine Islands
2014 2013
2014 2013
5=
Standard Chartered
1=
Citi
7=
ANZ
1=
Maybank
Inheritance and succession planning
7=
J. Safra Sarasin
Precious metals investment
9=
8
Credit Suisse
2014 2013
2014 2013
9=
4
HSBC
1
9=
3
JPMorgan
Real estate investment
1
1
CIMB
5=
CIMB
BNP Paribas
2=
Trust services
Relationship management
2014 2013
2014 2013
2014 2013
1
1
4=
CIMB
1
1
BDO Private Bank
4=
Privacy and security
2014 2013
2014 2013
2014 2013
1
1
HSBC
1
ANZ
ANZ
Structured products
Offshore services
Range of investment products
2014 2013
2014 2013
2014 2013
1
1
4=
Citi
1
Bank of the Philippine Islands
Citi
Private equity investment
Tax guidance and services 1
Goldman Sachs
BNP Paribas
Managed futures
Corporate advisory for private banking clients
Range of advisory services
2014 2013
2014 2013
1
2014 2013
1=
Goldman Sachs
Hedge fund investment
1=
Standard Chartered
2014 2013
1
2=
CIMB
1
Goldman Sachs
Islamic banking services
Bespoke Wealth Planning
1
2014 2013
2014 2013
Family office services
1
1
Maybank
1
J. Safra Sarasin
Philanthropy services
Goldman Sachs
2014 2013 1
4=
Citi
2014 2013 1
22
4
Citi
Euromoney Asia Private Banking Review
CORRECT 0914 PB Survey and Charts 14.indd 22
© Copyright Euromoney
www.euromoney.com
02/09/2014 11:47
Net-worth-specific services Super affluent clients ($500,000 to $1 million)
Luxury investments (non-art)
Corporate advisory for private banking clients
2014 2013
Family office services
2014 2013
High Net Worth I clients ($1 million to $10 million)
Tax guidance and services 2014 2013 1
Deloitte
1
Ernst & Young
1
1
Yacht/Aircraft financing
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
Inheritance and succession planning
High Net Worth II clients ($10 million to $30 million)
1
UBS
1
UBS
Trust services 1
2
UBS
Specialized services Corporate executives
Ultra High Net Worth clients (Greater than $30 million)
Tax guidance and services
2014 2013
2014 2013
1
1
2
HSBC
1
1
UBS
2014 2013 1
Singapore Best private banking services overall
Equity portfolio management
2014 2013
2014 2013
1
2014 2013
1
4
Citi
1
1
UBS
Fixed income portfolio management
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
Lending/Financing Solutions
2014 2013
8
5
Deutsche Bank
2014 2013
1
9
8
Bank of Singapore (OCBC)
1
ABN AMRO
7
1=
1
2014 2013 1
Citi
DBS Bank
1
1
1
2014 2013 1
2014 2013
1
2
Precious metals investment
2014 2013
2014 2013
1
2014 2013
1
1
DBS Bank
Credit Suisse
Art and Collectibles advisory
Relationship management
1
UBS
Yacht/Aircraft financing
2014 2013 Goldman Sachs
Maybank
Philanthropy services
Commodities Investment 1
Credit Suisse
Islamic banking services
Best local private bank
10
UBS
Corporate advisory for private banking clients
1
Citi
UBS
Offshore services
1
UBS
Real estate investment
Specialized services Entrepreneurs
Privacy and security
2014 2013
2014 2013
2014 2013
1
1
1
UBS
1
1
Goldman Sachs
DBS Bank
1
UBS
Private equity investment
Corporate executives
Range of investment products
2014 2013
2014 2013
2014 2013
1
1
1=
UBS
3
Goldman Sachs
1
4
UBS
Structured products
Inherited wealth and business
Range of advisory services
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
Euromoney Asia Private Banking Review
CORRECT 0914 PB Survey and Charts 14.indd 23
3=
UBS
© Copyright Euromoney
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
Source: Euromoney Research Group
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
Source: Euromoney Research Group
10
25 %
20
5
15
0
10 -5
5 0
Brazil
China
India
Turkey
Russia
Source: Euromoney Research Group
-10 Asia
Latin America
North America
Western Europe
Source: Euromoney Research Group
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
Euromoney Asia Private Banking Review
Taiwan
Korea
0
China
Source: Euromoney Research Group
© Copyright Euromoney
India
Brazil
Russia
www.euromoney.com