The largest international wealth managers emerged from the financial storms in 2011 in more profitable shape than their smaller peers, with the 20 largest firms seeing cost-income ratios on average falling slightly from the year before, new data shows.
The report, by Scorpio Partnership, also showed a big jump in the top-20 rankings for Citigroup, moving from twentieth to thirteenth place. In first place is Bank of America, with UBS in second place and Wells Fargo in third, with Morgan Stanley fourth and Credit Suisse in fifth. The cost-income ratio for the 20 largest firms was 78 per cent, down from 79 per cent in the previous year. For all banks, the average ratio was 79 per cent. Swiss banks had an average ratio of 81 per cent.
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Scorpio produced the results in its annual Private Banking Benchmark of the global wealth management industry. The figures are drawn from 201 financial entities.
Firms in the top half of the Benchmark performed better than lower-tier wealth management firms in terms of net new money, assets under management, income and pre-tax profit growth, Scorpio said.