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2010 Finance Asia Country Pb Awards


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2010 Finance Asia Country Pb Awards

  1. 1. Private Bank Country Awards 2010By FinanceAsia Editors | 9 August 2010We are pleased to announce the winners of this years Private Bank Country Awards forAchievement.Today we announce our Private Bank Country Awards for Achievement for 2010.Once again, we will also be publishing our awards for the best private banks in each country in ourupcoming September issue of FinanceAsia magazine together with our annual rich list, which ranks Asias100 wealthiest families based on dividend income. Be on the lookout for the September issue (whichshould land on your desk around September 15) for the rich list.CHINABank of ChinaThe performance of Bank of China’s private bank looks extraordinary during the reviewed period giventhe fact that the competition among both local and foreign private banks intensified during the past year,and the market saw, in some areas of the country, private banking service providers outpace the growthof high-net-worth individuals. The bank’s client base grew 43% to nearly 14,000 by the end of March 2010from around 8,000 a year earlier. The bank’s comprehensive products and professional services haveattracted clients. It also has secured a reputation as China’s most internationalised bank by offeringwealth management services in Switzerland and Hong Kong.The bank can’t afford to be complacent with its success as it is facing competition from local peers suchas China Merchants Bank and foreign rivals such as HSBC, which both have excellent private bankingservices in the country. But it looks set to retain its leading position for some time.HONG KONGHSBC
  2. 2. HSBC dominates the retail banking scene in Hong Kong and when it comes to private banking it is theonly domestic bank that is truly competing with the international banks, making it an obvious choice forHong Kong residents as their wealth grows. Indeed it is one of the largest private banks in the world, withmore than 1,700 employees in Asia alone. Like its international peers, it offers local as well as offshoresavings products and investment solutions and it boasts one of the largest private banking advisory andinvestment counselling teams in Asia, with more than 100 professionals dedicated to providinginvestment ideas for its clients. HSBC is also very active in the management and transition of familywealth – an important business in Hong Kong where so many businesses are still family-owned. At theend of 2009, the bank had $122 billion of assets under management in Asia and its AUM in Hong Kong,which is one of its two private banking hubs in Asia alongside Singapore, grew by 31% last year.INDIAKotak Mahindra BankKotak once again wins this award as it continues to stand out as the leading financial services player inIndia. The group manages $2.92 billion for more than 1,900 high-net-worth individuals who range fromentrepreneurs and professionals to business families. The group can leverage its full range of financialservices with 20,000 employees and offices not just in India but also the US, London, Dubai, Singaporeand Mauritius. The group prides itself on being able to offer customised services based on clients’ profilesand investment objectives. In India, Kotak Group has been the pioneer in setting up institutional familyoffice services, dedicated structured products services, and estate planning.INDONESIABank MandiriA common route for the cash accumulated by wealthy Indonesians is to Singapore. Historically, the city-state has been a safe-haven for both ill-gotten and well-earned riches, where international private banksand Singapore’s home-grown asset managers offer sophisticated services and discretion. This is still thecase, of course, and in recent years that channel has become easier by the growing presence of many ofthose foreign banks in Indonesia’s major cities. But, Bank Mandiri increasingly offers a domestic stay-at-home alternative. Its large size, the security provided by government ownership and, most of all, itsreputation for managerial excellence and customer support makes it an attractive option. Its joint-venturewith French insurance giant AXA has also given a boost to Mandiri’s wealth planning and assetmanagement business. Meanwhile, the bank is focusing on splitting its operations into organisation
  3. 3. functions which will improve its dedicated private banking service, upgrade its information technology andinfrastructure across branches, and improve the quality of its staff.MALAYSIACIMB Private BankingCIMB remains the stand-out performer for private banking in Malaysia. And despite the country’schallenging market backdrop in 2009, the bank was still able to grow its private banking client base. It hasupgraded its IT systems to facilitate its revenue generation and customer experience operations and setup specialised client-facing platforms for key clients, such as its high-net-worth clients. CIMB also spentthe year expanding its fixed-income solutions, multi-currency structured products and alternativeinvestments products. And key for many clients in Malaysia, it offers Islamic private banking services. Asof April 2010, total assets under management at the private bank were M$6.72 billion ($2.1 billion), whichis a 44% increase from a year earlier.PHILIPPINESBDO Private BankWith 42 relationship managers and 22 staff in its wealth advisory team, BDO Private Bank is the biggestlocal private bank in the Philippines. It has roughly 4,500 individual customers with an average portfolio ofaround Ps25 million – which translates to a total of Ps114 billion ($2.45 billion) under management.Despite the global financial crisis, and in part because of it, BDO has maintained its strong growththrough 2009 and early 2010. As recently as 2003 the bank had just Ps7 billion under management. Fiveyears later, at the start of 2009, that figure had grown 10-fold to Ps72 billion and rose another 50% in2009 alone. The bank has six dedicated private banking “lounges” in the Philippines and offers the fullrange of domestic private banking services, including wealth advice, tax and estate advice, and familyoffice.SINGAPOREBank of Singapore (subsidiary of OCBC)Oversea-Chinese Banking Corporation’s (OCBC) $1.5 billion purchase of ING Asia Private Bank, whichwas completed in February, immediately created a new force among Singapore’s domestic wealthmanagers. The new entity, called Bank of Singapore, tripled OCBC’s private banking assets to $23 billion,making it the city-state’s second biggest by asset size. Its 200 private bankers offer both advisory and
  4. 4. discretionary services across a comprehensive range of products and services. Portfolio construction isbased on the core-satellite model, combining wealth preservation with capital appreciation. The satelliteportion is made up of growth-driven financial securities, especially Asian equities and fixed income as wellas commodities and foreign exchange, and also through access to alternative investments, such asprivate equity and fund of hedge funds. It can boast, too, that it is the only dedicated private bankingsubsidiary in Singapore with Aa1 rating by Moody’s.SOUTH KOREASamsung Securities Private BankSamsung Securities Private Bank has firmly established itself as the premier provider of assetmanagement services for rich Koreans. But, since the global credit crisis, even wealthy investors andsavers have become more risk averse, avoiding more complex and opaque structures for easy-to-understand vanilla products. The problem for Samsung is that any brokerage or bank can offer these. Itresponded last year by setting up a new customised platform of private banking service, which aims tobetter assess fund performance. Equally important, Samsung extended private banking services to all ofits customers irrespective of income level. Meanwhile, it is strengthening its market position in the affluentGangnam area in Seoul, where it plans to add four more branches this year to its existing 27 branches. Itwill also recruit 120 more private bankers on top of the 330 in the region. Polls consistently placeSamsung well above all domestic rivals.TAIWANChinatrust Commercial BankChinatrust’s ongoing efforts to adjust its services to its customers’ needs – whether they qualify as VIPcustomers (those with assets greater than NT$3 million ($94,720), Super VIP (assets above NT$15million) or VIP To Be (assets between NT$1 million and NT$3 million) – and an increased focus onreduction of client risk enabled it to grow its fee income in 2009 even with the lingering effects of thefinancial crisis. At NT$6.4 billion, it earned 2.6 times as much fees as its closest competitor (Citi) and 3.2times that of the next domestic bank (Taishin), driven by strong growth in the sale of mutual funds andbancassurance.It also dominates the VIP segment of the market with a 16% market share, compared with a market shareof just 9% for the second ranked bank, while its 75 overseas locations makes it highly competitive – even
  5. 5. versus its foreign rivals -- as customer demand for cross border and overseas financial services isincreasing.THAILANDKasikornbankgroup Private BankAs well as having the longest nameplate on the street, Kasikornbankgroup Private Bank also has thelongest client list. With roughly 3,500 individual customers, it is more than twice the size of SCB PrivateBank – and in terms of assets under management it is considerably bigger, managing Bt272 billion ($8.3billion) compared to just Bt50 billion at SCB. And that number continues to grow as the associated perilsof a global financial crisis and super-low interest rates have helped to encourage wealthy Thais to entrusttheir money to professional managers. During 2009, Kbank added 1,000 new clients to its books, grew itsassets under management by 10% and its fee income by 42%. The bank offers a broad range ofproducts, from money market instruments and mutual funds to structured investments and retirementsavings schemes, with a dedicated staff of relationship managers to provide portfolio analysis andmonitoring.Copyright © 2010 Haymarket Media. All rights reserved. This material may not be published, broadcast,rewritten or redistributed in any form without prior authorisation.Your use of this website constitutes acceptance of Haymarket Medias Privacy Policy and Terms &Conditions.