China's PBs grow AUM as global banks slow

Added 18th July 2016

Asia-based private banks grew AUM 17% on average last year versus a 1% drop globally, according to a recent report by Scorpio Partnership.

China's PBs grow AUM as global banks slow

The Asian growth was led by Chinese banks. China Merchant Bank, the mainland's seventh largest bank by assets, is now ranked the world’s 20th biggest private bank after a 57.8% surge in US dollar assets under management to $193bn last year – the strongest growth among all peers.

Industrial & Commercial Bank of China, the nation’s largest, grew private banking AUM 28.9% to $154.1bn. It is ranked 23rd.

The rest of the top 25 private banks are all from Europe or North America, with Switzerland-based UBS retaining the top spot in 2015, although with slightly lower AUM.

The annual report by the London-based research firm analysed about 200 private banks -- eight of them in Asia -- which collectively represent $15.5trn in AUM.

“China Merchants Bank and ICBC in 2015 pursued a growth strategy, expanding both the products and services range, and the overseas operations, as well as better client service,” senior analyst Valeriya Semenova told FSA.

“ICBC views internet-based financing as one of the strategic priorities,” she added.

Globally, “the majority of private banking institutions experienced a notable slow down in AUM growth and a squeeze on operating margins,” the firm said in the statement. Key reasons include volatile markets and clients hesitating to invest at levels previously experienced, the report said.

Top 10 private banks globally

 Ranking   Name   AUM ($bn)   Y-o-y AUM growth 
 1  UBS  $1,738  -1%
 2  Bank of America Merrill Lynch   $1,445  -2%
 3  Morgan Stanley  $1,439  -2.8%
 4  Credit Suisse  $687  -7.2%
 5  Royal Bank of Canada  $621  -11.9%
 6  Citi  $509  -7.6%
 7   JPMorgan  $437


 8   Goldman Sachs  $369  +1.7%
 9   BNP Paribas  $357  -4.6%
 10    Deutsche Bank  $311  -6.8% 

Source: Scorpio Partnership

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