SCORPIO PARTNERSHIP GLOBAL PRIVATE BANKING BENCHMARK 2016

Section One:

In brief - The leading global private banking Key Performance Indicator resource

The Scorpio Partnership Global Private Banking Benchmark 2016 is the latest industry wide key performance indicator assessment of the global wealth management sector from leading wealth management strategist, Scorpio Partnership. This resource has been prepared for public consumption every year since 2001 by Scorpio Partnership, the world’s leading strategy R&D think tank specialised exclusively on wealth management and private banking.

The report provides a detailed industry analysis on key performance indicators (KPIs) based on results collated from over 200 private banks and subsidiaries around the world. The firms assessed manage a total of USD15.5 trillion of client assets. The industry as a whole manages, in the reports estimates, USD19.6 trillion. Therefore, this research program evaluates effectively 80% of the entire industry and it covers all of the major operators. This makes it the most comprehensive objective assessment available.

The report is compiled by an experienced team of consultants and analysts who are constantly engaged with the international private banking and wealth management market. The report itself includes analysis of circa 20,000 data points on the private banking industry’s key performance indicators.

The Private Banking Benchmark 2016 is therefore essential reading for private banking management, private banking strategy teams and financial analysts as well as service providers to the private banking market including asset managers, investment banks, trust companies and specialist professionals such as lawyers, accountants and management consultants.

Further information about purchasing the Global Private Banking Benchmark 2016

The Scorpio Partnership Global Private Banking Benchmark 2016 report can be purchased directly through Scorpio purchasingoptionsPartnership. Details of the payment options are listed below:

1. How to purchase:

2.How much it costs:

  • There are two purchasing options depending on the usage requirements for the report.
  1. The Single-user licence is intended to accommodate a smaller user group of reviewers and focuses on the 43 charts of primary KPIs (see table of contents.
  2. The Enterprise licence out includes extended data tables of NNM, cost income ratios and profits for the leading top 50 firms. This is also intended for a wider internal distribution and the document can, for instance, then be placed on a corporate server archive.

prices

  • Orders received before 21st of July will be eligible for the early bird discount of 10%

Should you wish to discuss the purchasing options or a more tailored solution as well as broader content inquiries on the report please contact: Valeriya Semenova at +44 207 086 5218 or valeriya@scorpiopartnership.com

The benchmark report has consistently been the authoritative chronicle of global wealth management for 15 years

15years

Key findings from the Private Banking Benchmark 2016

The annual 100 page report is the most comprehensive industry assessment of published financial performance information from over 200 private banks and subsidiaries globally. First released in 2001, the document has now come to be recognised as a leading independent indicator of the industry’s operating model performance.

Figure 1: 2016 Key Performance Indicators for the international wealth management industry

keyfindings

Source: Scorpio Partnership Global Private Banking Benchmark 2016
  • Challenging financial markets and tough wealth management market conditions have impacted AUMs and profitability.
  • The leading 25 private banks have attempted to weather the storm, with market share amongst the 25 leading firms increasing to 56.3%.
  • Indeed, the average net new asset growth rate was up 33% from last year’s figures. However, for many, this positive news was cancelled out by the fluctuations in the global markets.
  • Signals from the mid and lower sized wealth managers indicate they are having a greater ability to reach out and appeal to a wider market of client assets.

 

Section Two:

Table of contents and list of figures

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Contents

List of figures

 

Section Three:

Sample of Benchmark Data

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The ranking of the top 10 in the Global Private Banking Benchmark 2016

Source: Scorpio Partnership Global Private Banking Benchmark 2016
FOOTNOTES WEALTH MANAGEMENT DATA CHART FIGURE 1
*AUM YE2014 figures have been restated to adjust for changing methods in financial reporting by private banks and in some cases are not consistent with previous years’ press releases.
1Bank of America Merrill Lynch’s Global Wealth and Investment Management division AUM includes Merrill Lynch Global Wealth Management (MLGWM) and US Trust, Bank of America Private Wealth Management & Other. The firm reports total client balances of USD2,456.8bn including USD900.9bn in AUM and USD1,040.9bn of brokerage business for this division. Assets in custody of USD113.2bn are excluded and banking deposits of USD260.9bn and loans and leases of USD140.9bn for this client segment. Furthermore, MLGWM accounts for 81% of client balances in 2015 (USD1,985.3bn). US Trust & Other accounted for the remaining 19%. 68.4% of MLGWM client balances are USD1mn+ accounts (source: Credit Suisse Financial Services Conference, 2014). The estimated AUM for Bank of America Merrill Lynch attributable to HNW clients is USD1,444.8bn.
2Morgan Stanley has total AUM of USD1,985.0bn including deposits of USD149.0bn. 78.4% of total AUM is attributable to the USD1mn client segment (Morgan Stanley 2016 U.S. Financials Conference). Morgan Stanley’s AUM was calculated to be USD1,439.4bn for HNW client assets.
3Citi’s AUM is for accounts over USD1 million including Citi Private Bank assets (CPB targets clients with a net worth of USD25mn) and Citi Personal Wealth Management assets (CPWM targets mass affluent clients).
4JP Morgan’s AUM of USD437.0bn only refers to assets actively managed on behalf of Private Banking clients and does not include Brokerage and Deposit assets. The addition of custody, brokerage administration and deposit accounts would give total private banking client assets of USD1,050.0bn.

Gross margin in basis points (bps) by business model; time series 2007 - 2015

Source: Scorpio Partnership Global Private Banking Benchmark 2016

Average operating expenses by business model; time series 2007 - 2015

Operating result by tier; time series 2013 - 2015

Source: Scorpio Partnership Global Private Banking Benchmark 2016