The changing shape of Asia’s private banking sector

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Singaporean banks and Swiss specialists step up their presence in the sector

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Singaporean private banks have been moving into the space left by departing European banks. Photo: Reuters

Alun John

Published: 8:54pm, 11 Apr 2017Updated: 11:00pm, 11 Apr 2017

After a turbulent few years, Asia’s private banking landscape is starting to develop a new look, as Singaporean and Swiss private banks expand into the space left by departing European institutions.

In 2016, Singapore’s UOB and Swiss UBP broke into the top 20 private banks in Asia ranked by assets under management (AUM), while Bank of Singapore increased moved up four places to become the seventh largest in the region, according to figures released on Tuesday by the Asian Private Banker magazine.

UBP’s Asian AUM shot up, from less than US$1 billion in 2015 to just under US$12 billion last year, thanks to its acquisition of Coutts. Earlier this year, the bank’s head of private banking told the Post that they had a short-term target of US$15 billion AUM.

Bank of Singapore, the wealth unit of OCBC, grew its AUM from US$55 billion to US$79 billion, on the back of its acquisition of Barclays’ wealth unit in early 2016.

Two other high-profile deals last year also involved companies from those regions, with LGT acquiring ABN Amro’s wealth unit at the end of 2016, and DBS purchasing ANZ’s wealth and retail business in five markets. LGT, which is owned by the princely house of Liechtenstein, is currently ranked 15th in Asia, but the bank’s CEO has said that following the deal its AUM will increase to US$40 billion. If other things remain equal, that would push it one place higher.

“The Singaporean banks have regional ambitions, and for them, increasing the size of their private bank is a good way to grow,” said Jan Bellens, EY Asia-Pacific banking and capital markets leader and global emerging markets leader.