DBS

It logged a record net profit of S$4.45 billion ($3.17 billion) in 2015 as total income rose 12 per cent to S$10.8 billion. The growth came as the group boosted its net interest income by 12 per cent to S$7.1 billion. Its net interest margin improved 9 basis points to 1.77 per cent, the highest in five years, in line with higher Singapore dollar interest rates. DBS highlighted its “resilience” in a year marked by slower economic growth, financial market volatility and heightened asset quality concerns. For the fourth quarter, net profit was up 20 per cent year-on-year at S$1 billion thanks to income growth of 13 per cent.

Within its consumer banking and wealth management unit, income grew 23 per cent to S$3.55 billion due to higher returns on deposits and wealth management sales. In the fourth quarter, net fee income fell 6 per cent as lower contributions from wealth management, brokerage and loan-related activities were partially offset by higher investment banking and card fees.

Bank of Singapore

Bank of Singapore, the private banking arm of OCBC, boosted its assets under management by 7 per cent year-on-year to $55 billion in 2015 despite a challenging macroeconomic environment and increased regulatory pressures. Its earnings asset base, which includes loans that are extended on a secured basis, rose 5 per cent to $68 billion from $65 billion in 2014.

OCBC
OCBC’s full-year wealth management income, which comprises income from insurance, private banking, asset management, stockbroking and other wealth management products, grew 6 per cent to a record S$2.35 billion ($1.68 billion), up from S$2.22 billion a year ago. As a proportion of the group’s total income, wealth management contributed 27 per cent last year, compared with 28 per cent in 2014. OCBC's core net profit after tax rose 13 per cent to a record S$3.90 billion in 2015. 

United Overseas Bank reported full-year earnings in 2015 of S$3.21 billion ($2.28 billion), down by 1.2 per cent from the previous year. Results for the previous year included a higher write-back of tax provisions, the firm said. Total income grew by 7.9 per cent year-on-year to reach S$8.05 billion, led by strong client franchise income and higher gains on sale of investment securities, the bank said in a statement.

ANZ
Net earnings for the fourth quarter of 2015 were relatively flat, at S$788 million, when compared with the same quarter last year. However, they fell 8.1 per cent from the third quarter of 2015, mainly driven by lower gains from the sale of investment securities and higher one-off expenses in the fourth quarter. Australia and New Zealand Banking Group has reported an unaudited cash profit of A$1.85 billion ($1.32 billion) for the three months to 31 December, with cash profits rising 3 per cent on average levels in the preceding two quarters.

National Australia Bank
On a statutory basis, net profit attributable to the owners of the company was A$6.34 billion, an increase of A$1.04 billion or 19.7 per cent.

The bank said its wealth business has delivered “significantly improved results since 2013”; it announced a partnership with Nippon Life. Nippon Life acquired 80 per cent of NAB’s life insurance business, while NAB will retain the remaining 20 per cent.

NAB Wealth cash earnings increased 27 per cent to A$464 million benefitting from stronger insurance income and stable costs. Net income rose 10 per cent reflecting higher premium pricing, improved insurance lapses and claims, and non-recurrence of insurance reserve strengthening in the prior year. Funds under management rose 8 per cent.

UBS
UBS’s wealth management business delivered a pre-tax operating profit of SFr2.689 billion (around $2.64 billion) in 2015, from SFr2.326 a year earlier. Its Americas wealth business reported a pre-tax operating profit of $754 million from $981 million a year earlier.

Wealth management operating income, on a reported basis, was SFr8.155 billion in 2015; America wealth management income was $7.831 billion for the year, Switzerland’s largest bank said. 

Within the wealth management division, invested assets in Europe were SFr343 billion; Asia-Pacific assets were SFr272 billion and Swiss assets were SFr174; emerging market assets were SFr156 billion.

Asia-Pacific and Switzerland logged net inflows, while there were net outflows from Europe and emerging markets in the final quarter of last year. In terms of regional client advisor numbers in wealth management, Europe has 1,367, followed by Asia-Pacific, at 1,092, then Switzerland, at 771, and emerging markets, at 705 advisors. In the Americas business, there are 7,140 advisors in total.

On a quarterly basis, pre-tax profit was SFr344 million in the fourth quarter of 2015, down SFr295 million compared with the prior quarter, UBS said. Adjusted profit before tax decreased by SFr193 million to SFr505 million, mainly reflecting SFr148 million higher adjusted operating expenses. This was partly because the fourth quarter included SFr78 million higher net charges for provisions for litigation, regulatory and similar matters. In the Americas business for Q4, pre-tax profit was $13 million compared with $268 million in the third quarter, mainly reflecting $180 million higher net charges for provisions for litigation, regulatory and similar matters. Net new money inflows were $16.8 billion and mainly reflected significant inflows from recruited financial advisors.   

Credit Suisse
Unadjusted pre-tax private banking income at its Swiss universal banking arm – a newly-created and separate entity – fell by 29 per cent year-on-year to SFr869 million ($864.3 million) in 2015. On an adjusted basis, pre-tax income was SFr821 million, down from SFr790 million. This entity of the Zurich-headquartered banking group also reported a 69 per cent year-on-year fall in unadjusted pre-tax income, to SFr166 million, in the fourth quarter of 2015. At the newly-created international wealth management arm of the bank, covering activities outside of Switzerland, unadjusted pre-tax income in private banking dropped 34 per cent year-on-year to SFr526 million. In Q4, it posted a SFr56 million loss, the bank said. On an adjusted basis, IWM’s private banking showed pre-tax income of SFr813 million from SFr769 million in 2014.

As reported last November, the bank saw the exit of US private banking head Philip Vasan, as the Swiss bank moved to shift its US-based private banking operation to Wells Fargo. Switzerland’s second-largest banking group last year announced it had restructured its business divisions as part of moves to restore profitability. At the overall group level, Credit Suisse reported a net loss, attributable to shareholders, of SFr2.944 billion in 2015, against a comparable profit of SFr1.875 billion in 2014. Net revenues fell 9 per cent year-on-year in 2015 to SFr23.797 billion. In the bank’s “core” results (excluding certain figures from the “strategic resolution unit”), Credit Suisse said pre-tax income for 2015 was SFr88 million, against SFr7.2 billion in 2015.

At the Swiss universal banking unit, assets under management at the private banking arm were SFr241 billion, down 8.6 per cent from a year before; at the international wealth arm, private banking AuM was SFr289.6 billion, down by 10.5 per cent from a year before, the bank said. The gross margin on assets at the Swiss private banking business was 146 basis points; in IWM, the gross margin was 102 basis points. In the Asian private banking business, pre-tax income (on an adjusted basis) in Q4 was SFr48 million, down from SFr67 million a year earlier; for the whole of 2015, the figure was SFr344 million, up from SFr310 million. Net revenues were SFr1.178 billion, a gain from SFr1.037 billion. The results were driven by higher interest income, transaction-based revenues and recurring fees, partly offset by higher operating costs from new hires and spending on growth projects. The Asia business reported net new assets of SFr17.8 billion, a 12 per cent net new asset growth for last year. In total, Asia AuM stood at SFr150 billion at the end of the reporting period.

Julius Baer
Assets under management rose 3 per cent last year, to SFr300 billion ($293.9 billion) at year-end. They were boosted by net new money, while the bank's operating income rose and its cost/income ratio contracted. The Switzerland-listed firm reset its medium-term target for its cost/income ratio to a lower figure. The bank set aside money to pay for a settlement of charges by the US over holding secret bank accounts for Americans. Julius Baer's adjusted net profit was affected by the provision of $547.25 million (SFr521 million) for the eventual settlement with the US Department of Justice regarding the legacy US cross-border business (the US provision), falling by 52 per cent year-on-year in 2015 to SFr279 million. The bank's AuM figure for 2015 included SFr60 billion that came with the clients and relationship managers of the former Merrill Lynch International Wealth Management business outside the US, which Julius Baer bought. This equates to net new money of SFr12 billion (4.2 per cent) and a net positive acquisition impact of SFr8 billion, partly offset by a negative currency impact of SFr10 billion and negative market performance of SFr1 billion.

Pictet
Consolidated net profit fell 2 per cent to SFr452 million ($464 million) over the course of 2015 despite a rise in assets under management. In its unaudited figures for the full year, Pictet reported a SFr2 billion increase in assets under management or custody to SFr437 billion at the end of 2015. The profit decline came in spite of a 3 per cent climb in operating income to SFr2.12 billion. The group generated net new money of SFr14.6 billion.

Lombard Odier
Consolidated net profit rose 20 per cent to SFr144 million ($144 million) in 2015 as client assets rose from SFr215 billion to SFr224 billion. The growth came in spite of a volatile 2015 which began with the de-pegging of the Swiss Franc in January, resulting in a stronger currency. The negative impact of this, however, was offset by positive contributions from net new money and market performance during the year, the bank said in its results statement. Net inflows of funds from private and institutional clients were positive.

Total client assets in the private clients business remained steady at SFr116 billion, while asset management clients invested SFr49 billion with Lombard Odier Investment Managers, the same as in 2014. Technology and banking services clients entrusted the bank with a further SFr59 billion, compared to SFr50 billion the year before. Assets under management stood at SFr160 billion at the end of 2015.

Meanwhile, net profit excluding non-recurring items remained broadly flat as operating income grew 4 per cent year-on-year to SFr1.075 billion.

Vontobel
Vontobel reported a 2015 net profit of SFr180.1 million ($185.2 million), up 34 per cent on a year ago, while net new money rose by 6.5 per cent, taking total advised client assets to a record of SFr147.8 billion. The Zurich-listed firm's wealth management unit increased its advised client assets to SFr42.5 billion as a result of organic growth and the acquisition of Finter Bank. In wealth management operating income remained stable. Investments in the recruitment of additional client advisors, the number of which increased by 7 per cent in private banking, as well as negative interest rates, had an impact on the overall result. At SFr61 million, pre-tax profit in wealth management fell 18 per cent from a year earlier. The growth in the wealth and asset management business resulted in significantly higher net fee and commission income, which represents 71 per cent of Vontobel’s operating income. Net fee and commission income grew by 12 per cent to SFr701.1 million.

Barclays
The bank reported adjusted profit attributable to shareholders of £2.696 billion ($3.77 billion) in 2015, a 3 per cent year-on-year decrease. The UK-listed bank is cutting its stake in Africa-based BAGL. Over time, it will have a “non-controlling, non-consolidated investment” in that operation. Total income, net of insurance claims, was £24.528 billion on an adjusted basis, down 5 per cent; pre-tax profit, adjusted, was £5.403 billion in 2015, down by 2 per cent. The total cost/income ratio was 69 per cent at the end of last year, down from 70 per cent in 2014.

Lloyds Banking Group
It reported an underlying profit of £8.1 billion ($11.3 billion) for 2015, a rise of 5 per cent on a year before. Net interest income was £11.5 billion, up 5 per cent, driven by further margin improvement to 2.63 per cent. Operating costs fell to £8.3 billion despite additional investment and business simplification costs. At the end of last year, Lloyds had a cost/income ratio of 49.3 per cent, down by 0.5 percentage points. The bank logged a statutory pre-tax profit of £1.6 billion (2014: £1.8 billion), with increased charges for payment protection insurance sale (banks have, in recent years, had to set aside heavy sums to compensate clients for mis-selling of PPI packages). Lloyds said a PPI provision of £4 billion includes an additional £2.1 billion in the fourth quarter of last year.

HSBC
The private banking arm logged net operating income of $2.172 billion for last year, against $2.377 billion a year earlier. It reported pre-tax profit for the year ending 31 December 2015 of $344 million. This was sharply down from the $626 million logged a year earlier. Total client assets are $365 billion; the private bank had inflows of $14 billion in the business it is targeting for growth.

Standard Chartered
The bank suffered a pre-tax loss of $1.5 billion in 2015 – its first annual loss since 1989 – at the hands of challenging market conditions and restructuring charges of $1.8 billion. The emerging markets-focused bank reported a 15 per cent per cent year-on-year fall in income to $15.4 billion and an 84 per cent plunge in underlying pre-tax profit to $800 million. It attributed the “poor” performance to lower commodity prices, muted trade volumes, stock market volatility, and emerging market currency weakness against the US dollar. Income from Standard Chartered's private banking clients was down 9 per cent at $557 million and the lender saw weaker demand for its wealth management products, most notably in Hong Kong and Singapore during the second half of the year. Its wealth management income rose a marginal 2 per cent over the year to $1.7 billion as strong growth in the first half was largely offset by slower momentum in the second half.

Royal Bank of Scotland
Its banking arm, including its Coutts & Co and Adam & Co businesses, logged an adjusted operating profit of £113 million ($158 million) in 2015, a fall of £77 million from a year earlier, reflecting lower income and higher impairment losses. A charge for goodwill impairment of £498 million attributed to the business drove an operating loss of £470 million, compared with an operating profit of £99 million in 2014. The figures showed that Coutts had paid £75 million ($104 million) to settle two separate tax evasion probes relating to its former Swiss private banking business. The largest of the two penalties saw the bank pay out $78.5 million (£56 million) to US prosecutors after it admitted assisting US clients to conceal assets in offshore accounts, which subsequently helped them evade tax. In a separate investigation, Coutts paid €23.8 million (£18.8 million) German prosecutors after a tax evasion probe covering a 10-year period to 2014.

Citigroup
Private bank revenues inched up 3 per cent year-on-year at Citi to $691 million in the final quarter of 2015, driven by higher loan and deposit balances. It reported $3.3 billion net income for the fourth quarter 2015, or $1.02 per diluted share, on revenues of $18.5 billion. This compared to net income of $344 million, or $0.06 per diluted share, on revenues of $17.9 billion for the same period a year ago.

Wells Fargo
Net income at the wealth and investment management division of Wells Fargo was $595 million for the final quarter of 2015, up $76 million, or 15 per cent, from the same period a year ago. Net income was down 2 per cent however on the previous quarter. WIM revenue of $3.9 billion increased by $34 million, or 1 per cent, year-on-year and 2 per cent on the prior quarter. Wealth management client assets of $225 billion were flat year-on-year while total assets under management of $490 billion were down $6 billion as equity outflows and lower market valuations were partially offset by fixed income net client inflows. WIM (formerly wealth, brokerage and retirement) provides wealth management, investment and retirement products and services to clients across US-based businesses including Wells Fargo Advisors, The Private Bank, Abbot Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo Asset Management.

JP Morgan
It reported net income of $5.4 billion for the final quarter of 2015, an increase of 10 per cent compared to the same period a year ago. Net income is down 20 per cent on the previous quarter, however, when it was $6.8 billion. Net revenues meanwhile inched up 1 per cent year-on-year to $23.7 billion, driven by corporate and consumer and community, largely offset by lower revenues in corporate and investment banking and asset management.

Bank of America
The bank reported a 13 per cent year-on-year decline in net income at its global wealth and investment management arm, while group net income rose 9 per cent to $3.3 billion. Net income at BoA's GWIM arm was $614 million for the final quarter of 2015, down from $656 million in the previous quarter and $705 million a year ago. Revenue slipped from $4.6 billion in Q4 2014 to $4.4 billion at end-December 2015.

Among other highlights at the division, asset management fees of $2.05 billion “remain near record levels”, BoA said, down 1 per cent from Q4 2014. Full-year asset management fees were up 5 per cent year-on-year from $7.96 billion in 2014 to $8.35 billion in 2015. The company also logged strong growth in the number of wealth advisors, it said, up by 695 (5 per cent) since the start of the year, excluding consumer advisors. Meanwhile, referrals from Merrill Lynch and US Trust to other lines of business across the enterprise have risen by 54 per cent as advisors increasingly leverage the company’s full capabilities to meet the needs of their clients, BoA said.

Morgan Stanley
The wealth management arm reported pre-tax income from continuing operations of $768 million in the fourth quarter of 2015, up around 4 per cent from the $736 million result a year earlier. Net revenues stood at $3.8 billion in the fourth quarter, the firm said in a statement. Asset management fee revenues of $2.1 billion were essentially unchanged from a year ago, reflecting the impact of lower markets offset by positive flows. There were transactional revenues of $861 million, down from $976 million a year ago, primarily reflecting lower commission revenues and lower levels of new issue activity.

Goldman Sachs
The firm reported net revenues of $33.82 billion and net earnings of $6.08 billion for the year ended December 31, 2015. Diluted earnings per common share were $12.14 compared with $17.07 for the year ended 31 December 2014. Return on average common shareholders’ equity was 7.4 per cent for 2015. During 2015, the firm recorded provisions for the settlement with the RMBS Working Group of $3.37 billion ($2.99 billion after-tax), which reduced diluted earnings per common share by $6.53 and ROE by 3.8 percentage points. 

Net revenues in Investment Management were $6.21 billion for 2015, 3 per cent higher than 2014, due to slightly higher management and other fees, primarily reflecting higher average assets under supervision, and higher transaction revenues. During 2015, total assets under supervision increased $74 billion to $1.25 trillion. Long-term assets under supervision increased $51 billion, including net inflows of $71 billion (which includes $18 billion related to an acquisition), and net market depreciation of $20 billion, both primarily in fixed income and equity assets. In addition, liquidity products increased $23 billion.

Royal Bank of Canada
The bank reported net income of C$2.4 billion ($1.7 billion) for the first quarter ended 31 January 2016, flat from the prior year. The results reflect higher earnings in wealth management, RBC said, which benefited from the inclusion of its acquisition of City National Bank in November 2015. Wealth management net income of C$303 million shot up C$73 million, or 32 per cent, from last year, largely reflecting – as previously noted – RBC's acquisition of City National. Wealth management results also reflect lower restructuring costs of C$19 million (C$18 million after tax) related to its international wealth management business, and higher earnings from growth in fee-based client assets - mainly in Canadian wealth management and global asset management, it said. Compared to last quarter, net income was up C$48 million, or 19 per cent.