Wealth / PB Review 2Q23/6m23

UBS postponed the release of its 2Q23 results to 31-Aug-23; the financials shown here are based on Tricumen’s models. Credit Suisse is excluded from all analysis.

The aggregated in-scope revenue for 13 banks in this report reached $38bn in 2Q23, +12% y/y. Costs also grew, but at a slower clip, helping the pre-tax profit margin grow from 26% in 2Q22 to 27% in 2Q23. On a less positive note, the healthy revenue growth was largely due to net interest income, which jumped 26% y/y; investment management and transaction-related fees advanced by comparably modest 7% and 6%, lagging behind the 10% growth in AuM. Deposits declined 9% y/y – with clear winners and losers – and loans were largely unchanged, especially in $1m+ client bands.

The competition between Hong Kong and Singapore for Family Offices is intensifying. In June, Invest Hong Kong launched Network of Family Office Service Providers – one of eight related initiatives announced in the Government’s Policy Statement in March – while in Singapore, VCC structures are gaining in popularity. India’s onshore wealth is firmly in focus: Barclays, Julius Baer, LGT, HSBC and UBS all established onshore presence in recent times. Also, Blackrock and Jio Financial Services formed the $300m ‘digital-first’ JV.

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