Summary Of Third-Quarter Private Bank, Wealth Management Financial Results

The results focus on the largest institutions which provide wealth management. 

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Not all banks report on a calendar year schedule, or on the
same day, and not all the institutions are alike, so the results
from standalone institutions should be viewed differently from
wealth management results embedded within a larger group. These
results may be subsequently revised. For banks reporting in
certain currencies, we transposed the sums into the US dollar at
the time of reporting, but have since removed this as the
exchange rate will have subsequently moved. We hope readers find
it useful to see these figures collated in one article and can
make a few comparisons. To comment, email [email protected]

Goldman Sachs

It reported net revenues of $12.70 billion and net earnings of
$2.99 billion. Net revenues were $39.64 billion and net earnings
were $10.17 billion for the first nine months of 2024. Asset and
wealth management generated quarterly net revenues of $3.75
billion, including record quarterly management and other fees.

Citigroup

The wealth arm more than doubled its net income to $283 million
in the third quarter of 2024 from a year ago ($132 million), with
gains in the Citigold mass-affluent segment helping to produce
the result. Private bank total revenue dipped to £614 million
from $617 million. The Citigold revenue rose 13 per cent
year-on-year to $1.144 billion. Total operating expenses in the
wealth business of the US banking group dropped by 4 per cent;
net credit losses fell 23 per cent year-on-year to $27 million.

JP Morgan

Net income in the third quarter of 2024 slipped year-on-year to
$1.351 billion from $1.417 billion for its asset and wealth
management business, a unit including its private bank. Net
revenue in this segment rose to $5.439 billion in Q3 2024 from
$5.005 billion a year earlier; noninterest costs rose to $3.639
billion from $3.138 billion a year earlier. Provision for credit
losses was $4 million, against a $13 million net release in Q3
2023. Assets under management were $3.9 trillion and client
assets were $5.7 trillion, each up 23 per cent, driven by higher
market levels and continued net inflows.

Bank of America

Its wealth management arm, including its private bank, logged a
little-changed third-quarter net income result of $1.061 billion
versus $1.033 billion a year ago. Total client balances stood at
a record $4.193 trillion at September 30, 2024, up from $3.55
trillion a year earlier. AuM figures were propelled in part by
flows of $21.3 billion in the quarter, up from $14.2 billion a
year ago and $10.8 billion in the three months to the end of
June. 

Total revenue in the wealth business rose to $5.762 billion in Q3
2024, from $5.321 billion a year before; there was a small ($7
million) credit loss provision against a net release of $6
million in Q3 2023. Within Bank of America Private Bank, client
balances hit a record of $667 billion.

Northern Trust 

It reported a 42 per cent year-on-year jump in net income to
$464.9 million in the third quarter of 2024, helped by a 14 per
cent revenue rise drop in provision for credit losses. Trust,
investment and other servicing fees rose 8 per cent year-on-year
to $1.196 billion in Q3 2024. Other noninterest income rose 32
per cent to $209.6 million; net interest income rose 21 per cent
to $569.4 million. 

Wealth management assets under custody/administration rose 19 per
cent to $1.145 trillion. Total assets under custody stood at
$13.794 trillion at the end of September, up 25 per cent on a
year ago. Among the segments, the Global Family Office area
logged total servicing fees of $529.5 billion, a rise of 9 per
cent on a year ago.

Morgan Stanley

Revenues in the third quarter of 2024 rose 14 per cent to $7.3
billion from $6.4 billion a year ago. The figure was boosted by
the positive effect of deferred compensation plans. Record
pre-tax income of $2.1 billion in the quarter resulted in a
pre-tax margin of 28.3 per cent. Asset management revenues
($4.266 billion) rose from a year ago on higher asset levels and
the cumulative impact of positive fee-based flows.

BNY 

It reported a 16 per cent year-on-year rise in net income
applicable to common shareholders, at $1.11 billion. The group
has an adjusted pre-tax margin of 33 per cent. Total fee revenues
rose 5 per cent to $3.4 billion; total revenues also rose 5 per
cent to $4.648 billion. Noninterest expenses were unchanged at
$3.1 billion, it said in a statement.

Assets under management, as at September 30, rose 18 per cent
year-on-year to $2.144 trillion; income from wealth management
clients rose 14 per cent to $333 billion. Wealth management
revenue rose 6 per cent to $280 million. The year-over-year
increase primarily reflects higher market values and net interest
income, partially offset by changes in product mix.

Wells Fargo

Its wealth and investment management businesses – including its
private bank – reported $529 million in net income for the third
quarter of 2024, unchanged on a year earlier. Net interest income
fell 16 per cent year-on-year to $842 million; noninterest income
rose 13 per cent to $3.036 billion. Total revenue rose by 5 per
cent to $3.878 billion

BlackRock

It reported that its total AuM hit $11.4785 trillion at the end
of September, rising from $9.1 trillion a year ago and propelled
by $221.18 billion of net flows in the quarter, contrasting with
$2.6 billion a year ago.

UBS

The global wealth management arm posted a reported pre-tax
operating profit of $1.085 billion in the three months to the end
of September, rising from $926 million a year ago. Total revenues
in the quarter, on a reported basis, were $6.199 billion, rising
from $5.953 billion; operating expenses, as reported, were $5.122
billion, versus $5.017 billion.

The 2 per cent year-on-year rise in operating costs was mostly
due to a rise in personnel expenses, resulting from higher
financial advisor compensation and higher compensable
revenues.

UBS said its cost/income ratio in the global wealth management
arm stood at 82.5 per cent. Invested assets stood at $4.259
trillion, a rise sequentially of $221 billion, aided by $24.7
billion of net new money. 

Julius Baer

AuM stood at SFr480 billion at the end of October, a rise of
12 per cent on the same 10-month period in 2023. Rising stock
markets and client inflows pushed the figure up. A positive
effect of foreign exchange movements in the first half of 2024
was partly offset in the past four months.

Vontobel

The Zurich-listed firm reported that its assets under management
reached SFr227.6 billion at the end of September, up from
SFr206.8 billion at the end of December 2023. The AuM gain was
driven by rising markets since the start of January, SFr2.6
billion of net new money, and the positive impact of foreign
exchange moves, which amounted to SFr1.5 billion. In the private
client business, there were SFr3.1 billion in flows, within the
firm’s target range of 4 to 6 per cent; institutional client
outflows slowed to SFr500 million.

EFG International

Net profit for the first 10 months of 2024 came in at SFr260
million, up from SFr240 million in the same 10-month period a
year earlier. For all of 2023, it was SFr303.2 million a year
before. Net new assets totalled SFr7.4 billion, equating to
a 6.3 per cent growth rate, beating its target range of 4 to 6
per cent, helped by a “strong contribution” from client
relationship officers that the bank hired in 2023. Assets under
management stood at around SFr159 billion at end-October, up from
SFr142.2 billion at the end of 2023.

Barclays

The private bank and wealth management arm reported that pre-tax
profit fell 22 per cent year-on-year to £98 million in the three
months to end-September this year. Operating costs fell 4 per
cent to £222 million, while total income fell by 3 per cent, to
£326 million. Net interest income declined by 14 per cent in Q3
2024 on a year before; net fee, commission and other income,
however, rose by 16 per cent.

Structural changes dented the pre-tax profit result. For the nine
months to end-September, total operating expenses increased 22
per cent cent, reflecting the transfer of wealth management and
investment from Barclays UK and higher ongoing spending,
including hiring to support business growth. Invested assets rose
to £122.4 billion at the end of September, up from £105.4 billion
a year earlier. 

HSBC

HSBC said its wealth and personal banking arm logged a pre-tax
profit (on a constant currency basis) in Q3 2024 of $3.226
billion, up from $2.778 billion. In revenue terms, global private
banking revenue in the quarter was $669 million, up 15 per cent
year-on-year from $581 million. For nine months to
end-September, global private banking revenue stood at $300
million, up 15 per cent on a year earlier, driven by a strong
performance in brokerage and trading in the bank’s Asian
entities.

Standard Charted

The wealth and retail banking arm reported a rise of profit in
the third quarter to $742 million, rising 11 per cent on a year
earlier. For the nine months to end-September, they rose 5 per
cent to $2.149 billion. 

The wealth solutions business enjoyed rising earnings from
products, partly offset by lower deposits” income. Expenses rose
4 per cent, while credit impairment in the third quarter rose to
$62 million. Net new sales in the wealth business stood at $5
billion in the quarter, rising 13 per cent year-on-year. The
bank intends to invest around $1.5 billion over five years in
relationship managers and investment advisors, wealth solutions,
and enhanced advisory, cross-border and digital capabilities.
This represents a doubling of investment relative to its previous
plans.

Lloyds Banking Group 

It posted a pre-tax profit of £1.8 billion over the period July
to September, about 2 per cent lower than £1.9 billion reported
this time last year. After-tax profit was also down 6 per cent,
reaching £1.3 billion from £1.4 billion last year. 

NatWest, Coutts

The private banking arm – principally Coutts -reported a sharp
rise in operating profit to £90 million for the three months to
September 2024, from £59 million a year earlier, and also up from
£66 million at the end of June. 

Total income rose to £253 million in Q3 2024 from £214 million a
year before; operating expenses rose to £166 million from £157
million. The private banking division’s cost/income ratio,
excluding litigation, narrowed to 65.6 per cent from 73.4 per
cent. There were £900 million net inflows into the business in
the quarter.

DBS

Third-quarter 2024 net profit rose by 15 per cent year-on-year
from a year ago and 8 per cent from the previous quarter to
S$3.03 billion. The rises were driven by balance sheet growth,
record fee income led by wealth management, higher treasury
customer sales, and the strongest markets trading income in 10
quarters. Expenses increased by 4 per cent to S$2.25 billion.
Wealth management fees rose 18 per cent on a year ago to S$609
million.

OCBC

The parent of Bank of Singapore, the private bank, reported net
profit of S$1.97 billion for the third quarter of 2024,
rising 9 per cent on a year earlier. Wealth management fees
climbed 25 per cent in the quarter from a year ago, reflecting
increased customer activities across all wealth product channels.

UOB

Net fee income grew 7 per cent from the year before to a
record-high level of S$630 million, driven by growth in wealth
management fees. Net interest income increased by 1 per cent YoY
to S$2.5 billion, led by loan growth of 5 per cent. Other
non-interest income rose 70 per cent YoY to S$744 million,
boosted by record-high trading and investment income, as
customer-related treasury income grew strongly.

Emirates NBD

The group delivered a record profit of AED 19.0 billion for the
first nine months of 2024. Its digital wealth platform has
propelled group assets under management above $40 billion as the
product offering expanded to include fractional bonds & sukuks,
equities and mutual funds.