Wealth / PB Review 4Q23/FY23

New arrival: AllianceBernstein Private Wealth

The FY23 in-scope revenue for banks in this report reached $142bn, 9% ahead of FY22. The growth was driven by net interest income (which jumped 18% y/y, despite a slowdown in 4Q23) and, to a lesser extent, brokerage and discretionary fees. EMEA and APAC outperformed. Operating costs rose faster, however, lowering the aggregate pre-tax profit margin from 26% in FY22 to 24% in FY23. AuM surged 20% to $16tn, supported by strong net new money inflows, particularly from upper-bracket client segments.#

In Jan-24, in a historic – and wise – move, the SEC simultaneously approved 11 spot ETFs that invest directly in Bitcoin. Currently, crypto accounts for <1% of allocations, but this decision gives clients cheap and tax-efficient access to liquid assets and allows advisors to manage Bitcoin on behalf of their clients. Several banks in this report announced their intention to offer Bitcoin ETFs to (U)HNWIs. This is an important milestone for crypto – and the investment industry. Presenting 4Q23 results, Blackrock’s Larry Fink outlined his vision of the future: ETFs across active, passive, and digital products; and tokenisation enabling instant settlements and customised investment strategies.

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