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UBS still leads the pack of global wealth managers based on year-end results for 2013, following a reported growth in assets under management of 15.4% for UBS during the year in U.S. dollar terms. The asset base of the Swiss giant is now just shy of the USD2 tln mark at USD1.966.9bn. The milestone marks a transition in the scale of global wealth management. At current growth rates the bank could reach this landmark before the year end.

Tracking more than 200 financial institutions for 13 years, the Global Private Banking Benchmark analyses key performance indicators across the private banking business model.

This year's worldwide ranking saw a number of notable changes. BNP Paribas and Deutsche Bank both crept up one position as HSBC slipped from sixth to eight place. HSBC's negative percentage change in AuM of the top 25 would appear to be due to its ongoing strategy of pulling out of non-core markets. By contrast, Julius Bar grew assets by a dramatic 40.7% last year, thanks in part to its continuing acquisition of Bank America Merrill Lynch's international operations.

The Benchmark also finds that 2013 was a healthy year of growth for wealth managers across the industry. The average change in AuM for the over 200 Benchmark banks was 19.7%, more than double last year's growth. This latest assessment reveals that the industry is now managing an estimated USD20.3tln in HNW assets, up from USD18.5tln in the previous year.

Good performance in the financial markets contributed to the AUM increases, as did strong net new money (NNM). NNM inflows averaged at USD1.8bn for the Benchmark banks. Although year-on-year NNM dropped -13.6% on last year's growth rate; highlighting the extent of the buoyant growth in 2012. As the Eurozone crisis receded during 2012, returning client confidence boosted net new money to exceptional heights that year.

Strong NNM through 2012 and 2013 also contributed to income growth. Wealth managers saw an average percentage change of 10.9% in income for 2013, reflecting increasingly positive investor sentiment.

"This year's results highlight major structural changes taking place in global wealth management," says Seb Dovey, managing partner of Scorpio Partnership. "Overall, key growth indicators are positive but efficiency ratio averages are not yet improving which is still an alarm bell to consider by many in the corridors of power. In spite of the data points, we see encouraging signs of client experience innovation around the relationship models and propositions in the sectors which is drawing in new clients and may lead to improved results in the next assessment."

The findings demonstrate that the international wealth management sectors is acclimatizing to a 'new normal'. Strong growth figures are commonplace, but so too are rising costs as the recovery is accompanied by increased regulation. Some firms are continuing the strategy of trying to grow out of the malaise resulting in higher headcount costs. Cost income ratios now sit at 83%, up 3% from 2012.

The full performance table can be downloaded here
PD