Wealth / PB Review 1Q25

In-scope operating revenue topped $43bn, 10% ahead of 1Q24. NII declined held up better than expected, and fees – recurrent and transactional – jumped 14-20%. Amid the market turmoil, there has been a marked increase in demand for structured investments, defensive yields and hedging activities, especially for exposure to US$. Regionally, APAC and AMER outperformed. Operating costs also grew, but at a much slower pace; the resulting aggregate pre-tax profit exceeded $10bn, +13% y/y, with strongest increase seen in LatAm and APAC.

Net new money inflows totalled $365bn, nearly doubling from 1Q24. However, negative market movements and/or FX impact significantly reduced the net new assets. The 2Q25 started strong.

Banks which offer the full spectrum of Wealth products – as opposed to being focused on high-end/Private Banking (U)HNWI – broadly outperformed. Also, growing concerns notwithstanding, access to private markets remains probably the most significant differentiator between providers.