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UBS Takes Laurels as Top Global Private Bank - Again
Christopher Owen
9 January 2008
Swiss bank UBS remains the world's best private bank for the fifth consecutive year, according to Euromoney’s Annual Private Banking and Wealth Management Survey. The list of the top ten global private banks is dominated by universal and investment banks with Citigroup, HSBC and Credit Suisse also unchanged in second, third and fourth. Deutsche Bank and JPMorgan leapfrog above Merrill Lynch, with Goldman Sachs showing the biggest improvement climbing four places to eighth position, ahead of BNP Paribas and ABN Amro. The top ranked independent private bank was Pictet et Cie in eleventh place, closely followed by Julius Baer in thirteenth. Euromoney’s survey, now in its fifth year, also shows that the continued rise in private banking assets is backed by genuine growth in asset inflows as new wealth is created. It found global private banking assets under management now total $7.6 trillion, a 128 per cent increase year on year, and are now equivalent to the combined GDP of France, Germany and UK. And more wealth is being created in more places, particularly emerging markets such as China and India. These huge inflows have meant bumper profits for the banks that manage them. Net income growth is averaging 44 per cent for the industry globally, with the fastest growth coming in China with India, and Brazil not far behind. Euromoney editor Clive Horwood said: "While concerns grow about the state of the economy, there is no doubt that global wealth continues to increase at a rapid pace. These wealthy individuals and families are spread over an increasingly diversified geographic base, and are demanding a higher quality of service from companies and people who manage their wealth." But the survey also shows that the major global banks face stiff competition from the local banks in the rapidly growing emerging markets. In China, it is the Bank of Communication that rated as the best private bank, ahead of ABN Amro, HSBC and Citi respectively. Another local player, China Merchants Bank, is rated fifth. In India, Merrill Lynch is rated as the best private bank, but it is being pushed hard by Kotak Mahindra in second. BNP Paribas, HSBC and ABN Amro complete the top five. And in Brazil, UBS rules the roost but local player Banco Itaú comes in second place. Citigroup, Santander, JPMorgan take the places. Euromoney said this year's survey was the most comprehensive to date with 398 private banking and wealth management institutions taking part and over 1,000 individual private banking professionals voting.