Wealth / PB Review 1Q24

The aggregated revenue of the banks in this report totalled $41bn in 1Q24, 11% ahead of 1Q23. Revenue growth was driven by $10m+ clients: up 17% y/y, versus a more modest 4% for sub-$10m clients. This primarily reflects strong market valuations – the dominant driver of the healthy growth in Net New Assets – and an increase in clients’ demand for high-end discretionary services. Banks with established cross-border advisory – especially on structured products – outperformed. As the confidence in markets returned, transaction revenues surged.

Net interest income for the peer group was unchanged from 1Q23. However, adjusted for changes in the reporting format of specific banks, NII declined 10% y/y, in line with the consensus. Most banks in this report expect that NII will fall further in 2Q24, though at a much slower pace.

Pre-tax profits and margins were largely in line with the prior-year period. AuM reached $16.8tn, + 22% y/y. The growth from the $10m+ client segment outpaced that of the lower-end segments – but only slightly; contrasting this with the sizeable difference in revenue growth between the two broad segments demonstrates the relative challenge of converting Mass-Affluent and $1-10m HNWI AuM into revenue. Regionally, AuM growth in EMEA and APAC outpaced AMER.