Euromoney:Private Banking and Wealth Management Survey 2016 

UBS Wealth Management voted best global private bank; revenue outlook dimmer this year; asset management competition heats up.

In Euromoney’s 13th annual private banking survey for 2016, UBS Wealth Management has made its way back to the top of the rankings. The Swiss bank ranked as best global private bank overall—as well as in all net-worth categories. BNP Paribas and Julius Baer also moved up the global rankings this year. Goldman Sachs held onto its position as the best private bank for investment banking needs, while HSBC took Citi’s place to become the best private bank for commercial banking capabilities.

Regionally UniCredit moved up from third to first place this year as best private bank in Central and Eastern Europe. JP Morgan ranked number one in both North America and Latin America. Credit Suisse tops the Middle East rankings, and Nordea ranks first in the Nordic Regions. UBS remains the private bank of choice in Asia.

Asset management is becoming a key focus for private banks, and this year it was the traditional asset managers that received recognition by the industry for their services to wealthy clients. Blackrock ranked first globally for asset management within wealth management. Aberdeen Asset Management also rose up the global rankings to sixth place. Their success points to the competition that lies ahead for private banks managers of client assets, as clients seek a more automated advisory service, and look to form relationships with ETF providers.

In innovation (two new categories this year) UBS, Citi and Credit Suisse ranked as the top three for both client experience and back office systems.

UBS Wealth Management’s CEO, Juerg Zeltner was ranked by peers as this year’s best CEO of a global private bank.

Speaking to Euromoney about the challenges the industry has faced, he said: “It’s interesting how we as a financial industry look back on the last decade and point to the biggest changes as being within investment banking. Yes, regulation and profitability have changed in that sector, but I actually think the wealth management sector has dealt with historic change too. The OECD regulations, cross-border regulations, from know-your-client regulations to the investment suitability requirement. There have been so many changes and moving targets, it’s impressive our industry has embraced all this and moved beyond it.”

Data highlights from the survey:

• Expectations for revenue growth are lower this year among private banks. 73% of respondents are expecting growth down from 78% last year.
• Private banks have increased their focus on China and North Asia for expansion. 22% of respondents listed the region as key to investment in the coming year, followed by Western Europe.
• Client user experience technology and asset management are the two top priorities for private bank CEOs this year as they think about investing.
• 41% of banks say that regulatory changes will be the biggest challenge for them over 2016.

Source: EuroMoney

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