The aggregate operating revenue reached $42bn in 2Q25, up 10% y/y and only a shade below 1Q25. Year-to-date, revenue totalled $85bn, +10% y/y.
Investment management fees, up 12% and 17% y/y respectively, were the key drivers in 2Q25. Contrary to consensus expectations, net interest income grew, albeit very slightly and only due to three large banks aggressively expanding their lending business. Cash reserves dropped sharply amid falling interest rates, but demand for gold (including in tokenised form) and alternatives continues to rise.
Regionally, revenue growth in Americas and APAC outpaced EMEA – again, and by a wide margin. We expect EMEA will continue to lag in 2H25, but the differential may become smaller over the next year as several banks are making significant investments in Europe and the Middle East. That said, a shortage of experienced relationship managers in the Middle East is straining growth and profitability. The fastest-growing client segments in 2Q25 were HNWI High (AuM $10-25m) and mass-affluent ($200k-$1m).
Operating costs are tightly controlled (especially in EMEA) and increasingly focused on client-facing staff, as well as targeted AI tools and link-ups with specialist providers. The aggregate pre-tax profit totalled $10bn in 2Q25: unchanged from 1Q25 but 10% ahead of the prior-year period. AuM advanced 14% y/y, though primarily due to strong market valuations and FX effects, rather than new money. The growth in HNWI Low AuM ($1-10m) narrowly outpaced other client categories.