Here is a summary of third-quarter/interim results for private banks, and the wealth management arms of large banks around the world.

Here is a summary of third-quarter/interim results for private banks, and the wealth management arms of large banks around the world. Not all the results are strictly comparable between stand-alone private banks, for example, and those institutions that are contained within a larger group. (This is significant when looking at cost/income ratios, for example.) Data may also be revised or re-stated. Some firms do not disclose their private banking performance on a quarterly basis.

Wells Fargo

Net income at the wealth, brokerage and retirement division of Wells Fargo rose 4 per cent to $450 million in the third quarter of 2013, as total revenue inched up 1 per cent to $3.3 billion. Year-on-year, net income in this division shot up 33 per cent from $338 million, while total revenue was up 9 per cent. The 9 per cent hike in revenue was driven by strong growth in asset-based fees and higher net interest income, partly offset by decreased brokerage transaction revenue.

Citigroup

Net income at Citigroup dropped 23 per cent during this year’s third quarter to $3.2 billion, while private bank revenues – which are up 1 per cent year-on-year - fell from $645 million to $614 million. Year-on-year, group net income is up considerably from $468 million, although it is worth noting that Q3 2012 results included a pre-tax loss of $4.7 billion ($2.9 billion after tax) related to the sale of its stake in its joint venture brokerage Smith Barney to Morgan Stanley. Total revenues are down 13 per cent compared to the second quarter of 2013 to $17.9 billion, but are up 30 per cent year-on-year (Q3 2012: $13.7 billion). Excluding credit/debt valuation adjustments and the Q3 2012 MSSB loss, Citigroup revenues of $18.2 billion in this year’s third quarter were 5 per cent below the prior year period.

Goldman Sachs

Net revenues from investment management totaled $1.22 billion at end-September 2013, up by 2 per cent year-on-year but down by 9 per cent since this year’s second quarter. The 2 per cent increase in investment management net revenues reflected higher management and other fees, due mainly to elevated average assets under supervision. The firm also cited “favorable changes in the mix of assets under supervision, partially offset by lower transaction revenues.” For the group as a whole, Goldman Sachs logged net revenues of $6.72 billion, down from $8.6 billion, or 22 per cent, and $8.5 billion, or 20 per cent, on the previous quarter and a year ago respectively.

Northern Trust

Wealth management assets under management totaled $211.6 billion at end-September 2013, a year-on-year and quarterly increase of 15 and 4 per cent respectively. Total AuM reached $846.2 billion during this year’s third quarter, up from $803 billion at June 30, 2013, and up 13 per cent from $749.7 billion a year ago. In the second quarter, total AuM slipped from $810.2 billion to $803 billion, although it was up 14 per cent year-on-year. Trust, investment and other servicing fees in wealth management came to $288.2 million in the current quarter, increasing $20.7 million, or 8 per cent, from $267.5 million in the prior year quarter. For this quarter, such fees were down 2 per cent from $293.1 million in Q2 2013, which the firm said was primarily due to higher waived fees on money market mutual funds.

JP Morgan

Revenue from private banking was $1.5 billion in the third quarter of 2013, up 9 per cent year-on-year, but unchanged since the second quarter. Assets under management ended the third quarter at $1.5 trillion, an increase of $159 billion (12 per cent) from a year earlier, but like private banking revenue, unchanged since Q2. The year-on-year increase was due to net inflows to long-term products and the effect of higher market levels. Custody, brokerage, administration and deposit balances were $706 billion, up 9 per cent over the year, due to the effect of higher market levels and custody inflows.

Bank of America

Net income at its Global Wealth and Investment Management division rose 26 per cent from the third quarter of 2012 to $719 million at September 30, 2013, which the US-listed bank said reflects solid revenue performance and low credit costs. Net income is down, however, from the $758 million logged at the end of this year’s second quarter. Revenue at the GWIM unit rose 8 per cent year-on-year to $4.4 billion as of end-September 2013, but like net income, is down slightly from $4.5 billion at Q2 2013. Long-term assets under management flows were $9.7 billion for the quarter, representing a 79 per cent increase from a year ago and reaching $38.9 billion year-to-date. It described GWIM asset management fees of $1.7 billion as a “post-merger record,” equivalent to a year-on-year growth rate of 13 per cent. Meanwhile, GWIM client balances of $2.28 trillion increased $68 billion, or 3.1 per cent, for the quarter, while Merrill Lynch Wealth Management client balances rose 3 per cent.

Morgan Stanley

Morgan Stanley Wealth Management reported pre-tax income from continuing operations of $668 million for this year's third quarter, up from $247 million and $655 million logged a year ago and in Q2 2013 respectively. Net revenues for the current quarter were $3.5 billion, basically unchanged from the previous quarter but up from $3.2 billion a year ago. The pre-tax margin was 19 per cent for Q3 2013. Morgan Stanley said that results for the current quarter do not include a non-controlling interest allocation to Citigroup following the completed acquisition of the wealth management joint venture, whereas Q3 2012 included a non-controlling interest allocation to Citi of $9 million. Asset management fee revenues of $1.9 billion rose 6 per cent from last year’s third quarter, which the firm said reflects primarily an increase in fee-based assets and positive flows, partially offset by lower referral fees from Citi.

BNY Mellon

BNY Mellon reported that assets under management amounted to a record $1.53 trillion at the end of this year’s third quarter, representing a 13 per cent increase compared to the same period last year and a 7 per cent rise sequentially. Both the year-over-year and sequential increases primarily resulted from net new business and higher market values. Investment management and performance fees were $821 million at end-September 2013, up 5 per cent year-on-year but down 3 per cent on the previous quarter. It said the year-over-year increase was primarily driven by higher equity market values and net new business, partially offset by the average impact of the stronger US dollar.

DBS Group

The Singapore-based banking group that provides services including wealth management, reported a 1.0 per cent year-on-year rise in group third-quarter net profit of S$862 million ($694 million), while its chief executive was tight-lipped on whether his firm may bid for Societe Generale’s Asia private bank. The Asian banking group reported net interest income of S$1.406 billion in the third quarter, up from S$1.332 billion a year ago; total expenses were S$462 million, a 9 per cent year-on-year increase. It has a total capital adequacy ratio of 15.9 per cent and a total cost/income ratio of 44.1 per cent. As far as its consumer banking/wealth management arm was concerned, DBS logged a pre-tax profit in Q3 of S$179 million, up from S$134 million a year before.

ANZ

Australia and New Zealand Bank, one of Australia's Big Four banks, saw its net profit after tax for 2013 financial year rise by 11 per cent from the previous year to A$6.3 billion ($6 billion) as client deposits grew and expansion initiatives both inside and outside of Australia started to bear fruit. The bank issued its results and insisted on how Asia's rising wealth made its focus on the region as more important than ever before.

Its global wealth division, in particular, posted a 36 per cent rise in profit, with earnings before provisions gaining 20 per cent year-on-year on a 5 per cent increase in income and 2 per cent drop in expenses. Global Wealth serves over two million clients and manages some A$59 billion in investment and retirement savings in Australia and New Zealand. Wealth solutions held by ANZ customers also rose 11 per cent year-on-year, helped by increased demand for superannuation products. Retail life insurance in-force premiums grew 10 per cent and funds under management went up 13 per cent, driven by the productivity improvements in both ANZ and aligned planner channels, as well as improved investment market performance.

OCBC

Oversea-Chinese Banking Corporation, the Asia banking group that owns the Bank of Singapore subsidiary, reported a net profit after tax of S$759 million ($610 million) for the third quarter of 2013, while core net profit, when certain divestments are taken into account, rose 5 per cent from a year ago. OCBC’s overall income from wealth management activities, comprising income from insurance, private banking, asset management, stockbroking and sales of other wealth management products, was S$1.44 billion in the first nine months of the year, up by 8 per cent from a year ago.

As a share of total income, wealth management activities contributed 29 per cent, as compared to 27 per cent in the previous year. OCBC’s private banking business continued to expand year-on-year, with assets under management of S$57 billion as at 30 September, a 15 per cent increase from S$48 billion a year ago.

UBS

It logged pre-tax profits in its global wealth management business, including the Americas, during the third quarter of this year while it also remained in the black for the banking group as a whole. As far as the Wealth Management business was concerned (excluding the Americas business), it achieved year-to-date net new money of more than SFr43 billion, up around 20 per cent compared to the same period in 2012, the Zurich-listed bank said in a statement today.

Profit before tax at this segment was SFr555 million in the third quarter of 2013, broadly unchanged compared with SFr557 million in the prior quarter. Operating income fell by SFr116 million to SFr1.837 billion, mainly reflecting lower transactional income due to lower client activity levels.

As far as Wealth Management Americas is concerned, profit before tax in the third quarter of 2013 was $218 million compared with a record profit before tax of $245 million in the prior quarter. Adjusted for restructuring charges, profit before tax fell to $232 million from $256 million in the second quarter.

Invested assets in Wealth Management rose by SFr9 billion to SFr871 billion due to positive market performance of SFr17 billion and net new money inflows of SFr5 billion, partly offset by negative currency translation effects of SFr13 billion. Invested assets in Wealth Management Americas, meanwhile, fell by SFr12 billion to SFr831 billion. In dollar terms, invested assets increased by SFr27 billion to SFr919 billion, reflecting positive market performance of SFr25 billion as well as continued net new money inflows.

Credit Suisse

The private banking and wealth management arm of Credit Suisse today reported pre-tax income of SFr1.018 billion ($1.14 billion) in the third quarter of this year, up from SFr936 million a year ago and up from SFr917 million in the previous three months.

The Zurich-listed banking group said net revenues in Q3 were SFr3.32 billion, a slight gain from SFr3.3 billion a year before. This part of Credit Suisse reported a cost income ratio of 68.3 per cent, declining from 70.6 per cent a year before. Private banking and wealth management recorded net new assets of SFr8.1 billion in 3Q13. The wealth management clients arm contributed net new assets of SFr3.2 billion with continued strong inflows from emerging markets and from the ultra high net worth individual client segment, partially offset by continued cross-border outflows in Western Europe.

Deutsche Bank

Germany’s largest bank said its Deutsche Asset & Wealth Management arm enjoyed one of its strongest-ever performances, logging pre-tax income of €283 million ($390.2 billion) in the third quarter of 2013, a 151 per cent year-on-year increase attributable to a 12 per cent decline in non-interest expenses. In the third quarter, the cost/income ratio at this business division fell sharply to 78 per cent in Q3 compared with 90 per cent in the same three months of 2012. Net revenues were €1.264 billion, a 29 per cent year-on-year rise. Invested assets fell by €9 billion to €934 billion, primarily due to foreign exchange rate movements and outflows of low margin assets, partially offset by positive market effects.

BNP Paribas

The Investment Solutions arm of Paris-listed BNP Paribas, one of the world’s biggest wealth managers, logged a rise in revenues in the third quarter of €1.543 billion ($2.11 billion) compared with the same three months of last year. Assets under management at this part of the French firm stood at €874 billion at the end of September this year, which equates to a 0.5 per cent rise from the end of June but a decline of 1.4 per cent from the end of December 2012. While there was a positive impact from gains in equity market indices during the reporting period, the appreciation in the euro’s exchange rate was an offsetting factor. Within the wealth management part of the Investment Solutions business, BNP Paribas said there were “strong asset inflows” particularly in the domestic markets business and in Asia. The wealth management arm held €279 billion of AuM at end-September.

Barclays

UK-listed Barclays’ wealth and investment management arm, which has seen a number of high-profile management changes in recent months, announced a pre-tax profit for the third quarter of £7 million ($11.2 million), up by £20 million to overcome a £13 million loss in the previous quarter. The gain was mainly driven by non-recurrence of the customer remediation provision at the firm, partly offset by a rise in costs to achieve Transform business development measures. Those costs rose by £11 million to £44 million.

Standard Chartered

The UK-listed banking group that earns a large chunk of earnings in Asia, said it delivered “resilient performance”, and expected to make low single-digit income gains this year, while it warned that falls in emerging market currencies such as the Indian rupee will affect results. The interim statement for the third quarter contained no hard financial numbers.

Lloyds Banking Group

The bank, which is part-owned by the UK taxpayer, reported a statutory pre-tax loss of £440 million ($707 million) in the third quarter of 2013, widening from its £151 million loss a year before. The bank’s underlying profit in the nine months to the end of September increased by £2.551 billion to £4.426 billion, it said. For the first nine months of this year, the bank also made a pre-tax profit of £1.694 billion. Net interest income for the quarter was £2.761 billion, a rise of 7 per cent from a year before; the bank logged impairments of £670 million, narrowing by 47 per cent from the impairments of a year ago.

Royal Bank of Scotland

The wealth arm of the bank, which includes Coutts, its flagship private banking arm, reported a third-quarter pre-impairment profit of £61 million, down from £71 million ($113.7 million) a year before. Operating profit was £60 million in the wealth division, down from £63 million a year ago, RBS said in a statement on its results. At the end of September, it employed a total of 5,000 staff, down from 5,100 at the end of June and had a cost/income ratio of 77 per cent, versus 76 per cent in the third quarter of 2012. Assets under management, excluding deposits, were £30.5 billion, a 2 per cent drop from the end of June.

Julius Baer

The private bank reported that its assets under management stood at SFr249 billion ($271.5 billion) at the end of October this year, a 31 per cent rise from the level at the end of 2012, including SFr48 billion from Merrill Lynch’s International Wealth Management business outside the US which the Swiss bank is in the process of buying. Following the local closing of the IWM transaction in Panama and on the back of further client asset transfers from various locations totalling more than SFr5 billion, IWM assets under management rose to around SFr54 billion, of which SFr34 billion are booked on the Julius Baer platforms and paid for.

Excluding the impact of the IWM acquisition, the rise in AuM in the first ten months of 2013 was driven by net new money and a positive market performance, partly offset by a negative currency impact due to the strengthening of the Swiss franc against most leading currencies, not including the euro.

Societe Generale

The bank said that its private banking arm logged a 97 per cent year-on-year rise in net income in the first nine months of 2013, standing at €130 million ($175.9 million), while it rose to €42 million in Q3 from €16 million in the same period a year before.

The private banking business “enjoyed robust commercial activity in Q3 13, particularly for structured products”. Strong performance boosted the gross margin on this business area to 108 basis points vs 83 basis points in Q3 2012. The business line’s assets under management amounted to €83.9 billion at end-September, due to a positive inflow of €800 million in the third quarter, mainly driven by France and Asia, a “market” effect of €700 million and a “currency” impact of €100 million.

HSBC

The global private banking arm of HSBC reported a pre-tax loss of $16 million for the third quarter 2013, compared to a pre-tax profit of $252 million for the same period last year. During a call with analysts, HSBC's chief executive Stuart Gulliver said that this was a result of the write-off of goodwill relating to the private banking business in Monaco, which it had considered selling earlier this year, litigation provision and the repositioning of the business. Net interest income decreased as higher yielding positions matured and opportunities for reinvestment were limited by prevailing rates, lending and deposit spreads narrowed and average deposit balances fell, the bank said.

The bank's cost/efficiency ratio was 99.8 per cent in the third quarter of 2013, compared to 66.3 per cent at the end of the second quarter in June.

ABN AMRO

The private banking arm reported a net profit of €125 million ($168 million) in the first nine months of 2013, about doubling from last year at €64 million. The increase was driven mainly by lower impairments in the international business, as well as higher management fees from increased assets under management. Assets under management within private banking rose by €4 billion in the first nine months of 2013 to €167 billion, mainly as the result of market performance.

Royal Bank of Scotland

The wealth arm, which includes Coutts, its flagship private banking arm, reported a third-quarter pre-impairment profit of £61 million, down from £71 million ($113.7 million) a year before. Operating profit was £60 million in the wealth division, down from £63 million a year ago. At the end of September, it employed a total of 5,000 staff, down from 5,100 at the end of June and had a cost/income ratio of 77 per cent, versus 76 per cent in the third quarter of 2012. Assets under management, excluding deposits, were £30.5 billion, a 2 per cent drop from the end of June.