A summary of all the financial results issued by private banks and wealth managers for the fourth quarter of 2018 and the entire calendar year.

Note: Firms may later revise the results. Not all banks report figures in the same way or frequency and are not therefore strictly comparable. Groups vary considerably in how much detail they disclose about wealth results. At Barclays, for example, the UK bank no longer breaks out its wealth and investment management figures. By contrast, old Swiss private banks Pictet, Mirabaud and Lombard Odier now disclose figures after having changed from their unlimited liability ownership structure about five years ago.

Goldman Sachs 
The firm reported net revenues of $36.62 billion and pre-tax earnings of $12.48 billion for 2018, a 12 per cent year-on-year rise in each case. Investment management produced record net revenues of $7.02 billion in 2018,13 per cent higher on a year before, including record management and other fees. Assets under supervision of $1.54 trillion included net inflows of $89 billion during the year, with net inflows of $37 billion in long-term assets under supervision. Total assets under supervision reached $1.54 trillion, up by 48 billion. Long-term assets under supervision fell by $4 billion, including net market declines of $41 billion as markets sold off.

Bank of America 
The global wealth and investment management arm of Bank of America reported a full-year revenue of $19.3 billion, a 4 per cent year-on-year rise, driven by higher asset management fees and net interest income. The GWIM group's pre-tax margin for 2018 was 28.3 per cent, widening from 26.8 per cent a year earlier. In the fourth quarter, net income rose by 32 per cent for the year to $4.1 billion, helped by strong client activity, and a lower number as a result of the impact of President Donald Trump's package of tax reforms, including changes to taxation of corporations, last year. There were inflows of $56 billion last year, $42 billion higher than a year earlier.

In the fourth quarter, however, there were $6.0 billion of outflows from the firm, as heightened market sentiment made investors nervous, encouraging a shift towards deposits. Overall, client balances of $2.6 trillion fell by 5 per cent year-on-year, as fourth-quarter market flows took a toll. Total wealth advisors across GWIM – including the Merrill Lynch, US Trust and Merrill Edge business segments – grew by 1 per cent year-on-year with a total of 19,459 at the end of the year, compared with 19,238 at the end of 2017.

Morgan Stanley 
The firm reported pre-tax income at its wealth arm of $1.01 billion in the fourth quarter of last year, down from $1.15 billion a year before; wealth management net revenue stood at $4.144 billion in the last three months of last year, down from $4.407 billion. The firm said the results reflected the “difficult environment, seasonality and certain compensation-related items”.

Total client assets were $2.3 trillion and client assets in fee-based accounts were $1.0 trillion at the end of the quarter. Fee-based asset flows for the quarter were a positive $16.2 billion. Wealth management representatives of 15,694 produced average annualised revenue per representative of $1.1 million in the current quarter. The quarter’s pre-tax margin was 24.4 per cent.  

Asset management revenues of $2.6 billion increased from $2.5 billion a year ago reflecting higher asset levels and positive flows. There were transactional revenues of $422 million, a fall from $790 million a year ago primarily due to the deferred compensation plan investment losses referred to above, as well as lower investment banking and fixed income revenues. Wealth management client liabilities were $83 billion at quarter end compared with $80 billion a year ago.

Citigroup
Citigroup has reported a 3 per cent year-on-year rise in private bank revenues to $797 million in the fourth quarter of last year, driven by growth in loans and investments, as well as improved deposit spreads. For the whole of 2018, private banking revenues came in at $3.398 billion, rising by 9 per cent on the result for 2017, the US banking group said. It gave few other details of its private banking arm’s results.

BNY Mellon
The firm logged net income in Q4, 2018 of $832 million, falling by 26 per cent year-on-year on the same quarter a year ago. The results were affected by the annual comparison effect of the US tax legislation enacted a year ago. When those and other on-off effects are excluded, earnings per share fell by 9 per cent rather than 22 per cent, the banking and financial services firm said.

Assets under custody stood at of $33.1 trillion, falling by 1 per cent, primarily reflecting lower market values and the unfavorable impact of a stronger US dollar, partially offset by net new business. Assets under management of $1.7 trillion fell by 9 per cent, primarily reflecting the unfavorable impact of a stronger dollar (principally versus sterling, lower market values, net outflows, the divestiture of CenterSquare Investment Management and other changes.

Northern Trust 
The firm reported fourth quarter net income per diluted common share of $1.80, compared with $1.51 in the fourth quarter of 2017 and $1.58 in the third quarter of 2018. Net income was $409.9 million, compared with $356.6 million in the prior-year quarter and $374.5 million in the prior quarter. Return on average common equity was 17.0 per cent. 

Assets under custody/administration (AUC/A) and assets under management are the primary drivers of the corporation’s trust, investment and other servicing fees. Wealth management assets under management stood at $1.069 trillion at the end of December, falling by 8 per cent from a year earlier. Total assets under custody/administration stood at $10.125 trillion at end-2018, falling by 6 per cent.

BlackRock
The world’s largest wealth manager reported total assets under management, of $5.975 trillion at the end of 2018, falling 5 per cent. There total net flows of $123.63 billion in 2018, down from $367.254 billion. Revenues rose to $14.198 billion, rising from $13.6 billion a year earlier. Net income fell to $4.305 billion, down from $4.952 billion. Adjusted net income in 2018 rose to $4.361 billion from $3.698 billion a year earlier.

Fidelity Investments
The Boston-headquartered firm logged a rise in profits and revenues for its third year in the row but could not withstand the asset effect of the stock market selloff in2018. Operating income rose by 19 per cent year-on-year to $6.3 billion in 2018. Revenue jumped by 12 per cent to $20.4 billion. A market rout at the end of 2018 helped push assets under management down by 1 per cent, to $2.42 trillion.

UBS
The firm reported a fourth-quarter pre-tax profit of $862 million, rising by 2 per cent from the same quarter a year ago, while net profit surged by 25 per cent to $4.9 billion, with the year-on-year rise inflated by the US tax changes of late 2017. On an adjusted basis, pre-tax profit for 2018 rose by 2 per cent, standing at $6.4 billion in 2018. For the fourth quarter, net profit attributable to shareholders was $696 million in the quarter, below a consensus forecast $729 million. Total invested assets fell and the wealth arm sustained a drop in transaction-based revenues amid difficult markets. The Zurich-listed bank has moved to reporting all its financial results in dollars, having flagged its intention to do so in its third-quarter statement. With such a significant amount of its earnings no longer being booked in Swiss francs, the lender decided that the switch made more sense and would reduce potential distortions and volatility in its earnings.

At the group’s global wealth management arm, covering businesses in the Americas, Asia, Europe and other locations, net new money totaled $24.7 billion for the year. The adjusted net margin was 17 basis points. Recurring net fee income and net interest income both increased year-on-year on higher invested assets during most of 2018, further progress on mandate penetration, as well as increased net interest margin on deposits and higher loan volumes. The wealth business’s adjusted cost/income ratio was 76 per cent. UBS had a CET1 capital ratio – a standard test of a bank’s capital buffer - of 13.1 per cent.

Total invested assets at the firm stood at $3.101 trillion at December 31, 2018, against $3.262 trillion at December 31, 2017.

Credit Suisse
The bank logged the first annual profit after taxes – SFr2.1 billion ($2.083 billion) – since 2014, completing a three-year restructuring program that the Zurich-listed lender said paid off.

Adjusted pre-tax income for last year came in at SFr4.2 billion, surging by 52 per cent on a year earlier. Net income attributable to shareholders stood at SFr2.1 billion. In the final three months of 2018 the bank said it logged pre-tax income, on an adjusted basis, of SFr846 million, up by 49 per cent on a year before.

Across the entire wealth management operation, the bank said net new asset inflows were “strong”, at SFr56.5 billion for the year, up by 49 per cent from a year before. Wealth management-related net revenues for 2018 were SFr13.3 billion last year, against SFr12.83 billion a year before.

Julius Baer
Net profit attributable to shareholders rose by 4 per cent last year to SFr735 million ($737.3 million), while its adjusted net profit rose a touch to SFr810 million from a year before. The bank reported net new money of over SFr17 billion during 2018, or a gain of 4.5 per cent and inside its 4–6 per cent target range. Assets under management stood at SFr382 billion at the end of 2018, falling by 2 per cent, dented by falls in equities and other markets last year.

Julius Baer’s adjusted cost/income ratio was 70.6 per cent and its pre-tax margin was 25 basis points, affected by some added legal and restructuring expense items.

Vontobel
The firm reported net profit of SFr232.2 million, up by 11 per cent on a year before. Adjusted for Notenstein La Roche integration costs – the business that Vontobel has acquired - net profit totaled SFr249.2 million, rising by 14 per cent. Despite the strong stock market correction in the fourth quarter of 2018, advised client assets reached SFr192.6 billion, thus exceeding the figure for the previous year (SFr186.6 billion). The net inflow of new money at group level was SFr5.0 billion, reflecting renewed contributions across all businesses. 

Adjusted for Notenstein La Roche integration costs, the cost/income ratio was 74.7 per cent in 2018. The return on equity was 13.0 per cent (13.1 per cent). Vontobel is therefore well on track towards achieving the increased profitability targets for 2020 defined following the acquisition of Notenstein La Roche: Vontobel now wants to achieve a cost/income ratio of less than 72 per cent (previous target: 75 per cent) and a return on equity of more than 14 per cent (12 per cent) by 2020.

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Pictet
For the calendar year ended December 31, 2018, the Pictet Group reported a 5.7 per cent rise in operating income to SFr2.666 billion, and a 4.1 per cent increase in consolidated net profit to SFr596 million. Assets under management or custody amounted to SFr496 billion at December 31, 2018, slightly lower than at December 31, 2017. Inflows and outflows almost offset each other, resulting in net new money of SFr1 billion. The core tier 1 capital ratio stood at 21.1 per cent.

Lombard Odier
Results to be announced.

Mirabaud
Results to be announced.

Deutsche Bank
In the private and commercial banking division, revenues in the fourth quarter of 2018 were €2.5 billion ($2.83 billion), rising by 6 per cent year-on-year. Revenues benefited from a gain on a property sale in Sal Oppenheim of €40 million and €35 million euros from Sal Oppenheim workout activities, compared with the positive impact in the prior year quarter of €43 million euros from Sal Oppenheim workout activities. Adjusted for these effects, revenues would have been up by 5 per cent.

Revenues in the Private & Commercial Business (International) rose by 5 per cent to €349 million, while wealth management revenues were €433 million, falling by 4 per cent. Growth in the Asia-Pacific wealth business was more than offset by “significantly lower revenues in Europe, the Middle East and Africa (EMEA) including Germany”.

Commerzbank
In Private and Small-Business Customers (PSBC), the growth strategy is paying off. At the end of 2018, the segment reached the one million mark for new customers in Germany since October 2016, and is therefore on course to meet its target of a net two million new customers by the end of 2020. In 2018, the number of net new customers rose by 417,000. Despite the slump on the equity markets, assets under control in Germany grew by €8 billion to €382 billion.

Societe Generale
Private banking’s assets under management totaled €113 billion at end-December 2018, 4% lower than in December 2017, impacted by the decline in the markets. 2018 net banking income was 4.2 per cent lower than in 2017 at €756 million, impacted by the decline in international activities in 2018. Revenues fell by 4.7 per cent in Q4 18 vs. Q4 17.

BNP Paribas
The wealth, insurance and asset management arm of BNP Paribas clocked up total assets under management of €1.028 trillion ($1.71 trillion) at the end of last year, falling by 2.2 per cent from the end of 2017 as markets fell. Within the wealth arm, AuM stood at €361 billion). Wealth and asset management revenues rose by 2.9 per cent in 2018 from a year earlier to €3.286 billion, driven by real estate services. The new MiFID II regulations of the European Union and unfavorable market movements acted as headwinds for these results, however.

Wealth and asset management pre-tax income stood at €681 million, falling by 24.2 per cent on a year before, or down by 18.1 per cent when non-recurring items are stripped out. In Q4, wealth and asset management revenues fell by 4.6 per cent year-on-year to €866 million. Pre-tax income was €146 million, falling by 41.2 per cent.

ABN AMRO 
Netherlands-listed ABN AMRO, whose services include private banking, today reported a 17 per cent year-on-year fall in profit for the 2018 calendar year due to costs associated with a customer due diligence remediation program and higher loan impairments. It also reported a 42 per cent slide in the final three months of 2018 from a year earlier. The bank said it is on course to meet its 2020 financial targets and has strengthened its capital structure. As a result, the bank proposed an additional dividend payment on top of the targeted 50 per cent of sustainable profit. It proposes to pay a final dividend of €0.8 per share ($0.91), taking the proposed total dividend for last year to €1.45 per share. The bank’s cost/income ratio stood at 58.8 per cent at the end of 2018, narrowing from 60.1 per cent a year before. The bank noted that its 2017 results were boosted by the sale of its Asian private banking business.

Credit Agricole (parent of Indosuez Wealth Management)
The banking group logged net income for Q4 of €1.008 billion; for 2018 it was €4.4 billion, up 20.6 per cent on a year before. Net revenues were €19.736 billion, rising by 5.9 per cent on a year earlier.

“The strong growth of underlying net income was achieved despite a much less favourable environment than in fourth quarter 2017 and in the first three quarters of 2018, especially for the activities related to capital markets, and in particular for asset and wealth management and for capital markets and investment banking.

Royal Bank of Scotland
Coutts and Adam & Co, the wealth management businesses of Royal Bank of Scotland, reported a full-year profit for 2018 of over £303 million ($388 million), rising by 112 per cent on a year earlier, driven by higher income, lower impairments and lower strategic costs. Total income at the private banks rose by £97 million, or 14 per cent, largely due to increased lending, higher funding benefits from deposit balances and higher investment income. Operating costs fell by £66 million, or 12.1 per cent. Excluding strategic, litigation and conduct costs, operating expenses decreased by £4 million, or 0.8 per cent. Return on equity rose to 15.4 per cent from 6.4 per cent, bolstered by asset and growth in net new assets, higher deposit margins and efficient capital management. Total assets under management overseen by private banking fell by 5.7 per cent to £26.5 billion, with the fall in markets hitting the figures.

Lloyds Banking Group
The bank’s underlying profit increased by 3 per cent to £927 million. Net income increased by £9 million to £1.988 billion while operating costs decreased by £19 million, with cost savings more than offsetting higher investment in the business. Total customer assets under administration fell by 3 per cent year-on-year to $141.3 billion.

HSBC 
Global private banking reported adjusted pre-tax profit of $300 million last year, unchanged from a year earlier. The firm said it made net new money inflows of $15 billion in key markets targeted for growth – of which almost 60 per cent came from collaboration with its other global businesses

The overall HSBC group said its reported pre-tax profit was $19.9 billion, up from $17.2 billion. Reported revenue was $53.8 billion, up from $51.4 billion in 2017. The bank’s retail banking and wealth management arm logged adjusted pre-tax profits of $7.1 billion, a rise from $6.5 billion.

Standard Chartered

Results to be announced.

DBS
DBS Group said its wealth management arm reported a 26 per cent year-on-year rise in income to S$2.661 billion ($1.96 billion) for 2018’s calendar year, while total assets under management rose to S$220 billion, a 7 per cent rise that defied volatile markets. 

For all entities of DBS, the group logged a record net profit of S$5.63 billion for 2018, a 28 per cent year-on-year increase, while fourth-quarter earnings rose by 8 per cent to S$1.32 billion. Return on equity rose more than two percentage points to 12.1 per cent, the highest in more than a decade.

Wealth management fees grew by 18 per cent to S$1.14 billion mainly from higher bancassurance income. 

By business unit, consumer banking/wealth management income rose by 21 per cent to S$5.65 billion from increases in all product categories led by deposits, cards and bancassurance. Costs rose by 13 per cent to S$5.80 billion. The ANZ acquisition and integration made up five percentage points of the cost rise.

United Overseas Bank
The bank logged after-tax profit for Q4, 2018 of S$916 million, rising from $855 million a year earlier. For the full year, earnings rose by 18 per cent year-on-year to S$4.01 billion. The cost/income ratio was 44.4 per cent, narrowing from 46 per cent.

OCBC (parent of Bank of Singapore)
Private banking assets under management rose by 3 per cent on a year before to $102 billion, driven by positive net inflows. Global consumer and private banking arms accounted for 25 per cent of full-year operating profit for 2018, rising from 24 per cent in 2017.

Full-year net fee income in wealth management net fee income rose by 4 per cent to S$2.03 billion on a year ago, buoyed by a rise in wealth, loan and trade-related fees. Weaker markets hit wealth management fees in Q4.