Private Banking and Wealth Management Survey 2022: JPMorgan – strength in adversity and diversity

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Photo: iStock

Photo: iStock

JPMorgan is named the world’s best wealth manager in Euromoney’s private banking and wealth management survey 2022.

The US bank is also picked as the best provider of private banking services to the mega-high net-worth segment (MHNW), classified as families with more than $250 million in personal assets, and to ultra-high net-worth (UHNW) individuals with $30 million to $250 million in assets.

The survey is the product of months of work by analysts and data experts at Euromoney, and involves polling 2,058 senior private bankers, investment managers and relationship managers around the world. The results are headlined by 17 global winners. Beyond that, categories are broken down into eight regions and then into country rankings.

JPMorgan’s success is a dual one. First, securing the top global ranking is no mean feat. Our survey is in effect a peer review, based on the personal views of private bankers around the world.

Its other success is to nudge UBS into second place in this year’s rankings. That’s a significant achievement: the Swiss wealth manager has topped the rankings in 13 of the past 18 years.

UBS has still had a strong year. It leads the overall rankings in Asia and western Europe, and wins in several global categories, including best provider for high net-worth (HNW) individuals and family offices, and in serving next-generation clients. It also lands the award for best global provider of environmental, social and governance/sustainable investing services.

We’re thrilled with the excellent results and grateful for the recognition and for our clients’ trust

Victor Matarranz, Banco Santander

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Banco Santander had yet another strong year. The Spanish lender has emerged in recent years as a leader in private banking in key growth markets in Latin America and Europe. It was a top-three ranked global private bank serving customers with up to $250 million in assets under management.

“2021 was an exciting year of success and triumph,” says Victor Matarranz, head of wealth management and insurance at Banco Santander. “Our global platform, local presence, renewed offer of products, technology and best talent were key. We’re thrilled with the excellent results and grateful for the recognition and for our clients’ trust.”

Credit Suisse’s year was marred by losses related to former clients Greensill and Archegos Capital Management. But its performance in the Euromoney survey held up well. It leads the way in the Middle East, where it is named best private bank/wealth manager and best for HNWs and mass- and super-affluents.

“It is our goal to remain the partner of choice for wealth management in the Middle East,” says Bruno Daher, Credit Suisse’s head of wealth management for the Middle East, Africa and non-resident Indians. “Our integrated bank approach, spanning investment banking, wealth management and asset management, resonates strongly with our clients and remains a key differentiating factor in this increasingly entrepreneurial region.”

We also see new winners in the survey this year.

Northwood Family Office is an independent and privately owned boutique family office that offers what it describes as “net worth management” services to wealthy Canadian and global families.

We are proud of the business we have built and believe we are well positioned to continue growing it in the future

Tom McCullough, Northwood Family Office

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The Toronto-based outfit tops the rankings for best private bank/wealth manager in North America and is named best provider to HNW, UHNW and MHNW clients, as well as the best wealth adviser for family offices. It is yet another sign of the growing clout of international multi-family offices.

“In the almost two decades since our founding, Northwood has become Canada’s leading multi-family office,” says its co-founder, chairman and chief executive, Tom McCullough. “In those 20 years, we have developed our unique client service model and built high-quality relationships with our clients, employees and peers in the industry. We are proud of the business we have built and believe we are well positioned to continue growing it in the future.”

There are some standout regional success stories, notably in Africa, where South Africa’s Absa Group is named best private bank/wealth manager for mass- and super-affluents.

Faisal Mkhize, managing executive, relationship banking, Absa retail and business bank, calls the result: “A testament of our dedication to ensure we have a best-in-class offering regarding products, service and client experience in this area of our business. We remain committed to continue our efforts to seek unique ways of being responsive to the ever-evolving needs of our customers.”

One notable trend this year is a tendency for regions and markets to be dominated by a single banking name. This is somewhat surprising, as rising profits in all markets in wealth management are making private banking an increasingly competitive business.

So just as JPMorgan dominates in Latin America, UBS triumphs in Asia and Western Europe, Credit Suisse stands head and shoulders above the competition in the Middle East and Danske Bank leads the way in the Nordic region.

Kudos must also go to the banks that top the rankings in individual markets. Leon Family Office sweeps the field in Russia, as does Hana Bank in South Korea, MUFG in Japan and China Merchants Bank in mainland China.

BNP Paribas does the same in France, as does Banco Santander in Chile and Poland; the latter is a market that Santander has made its own in private banking in recent years.

In Singapore, Asia’s largest and most advanced and innovative wealth management market, UBS wins the main prize, with the other main regional awards shared with DBS and JPMorgan.

In Hong Kong, Asia’s other important private banking market, JPMorgan wins the overall ranking and is named best provider to MHNW clients. Citi is best for HNW families, with HSBC named best bank for mass- and super-affluents.

HSBC will be looking to improve on its performance in Hong Kong and mainland China, its two most important markets. The London and Hong Kong-listed lender is hiring heavily in both. In June 2021, it pledged to hire 3,000 China-facing wealth managers, many of which will be located in the cross-border Greater Bay Area region that spans Hong Kong and central Guangdong province.

Elsewhere, SEB leads the way in Sweden, with Julius Baer topping the rankings in India – the Swiss firm is almost the last foreign private bank still standing in south Asia’s largest economy.

Julius Baer also grabs top spot in Monaco, a city state quietly positioning itself as a private banking mini-hub and a natural destination for global entrepreneurs and families seeking a range of wealth services, as well as financial and political stability.

Global reach pays off at JPMorgan

JPMorgan has long been a powerhouse provider of services to the wealthy across the world. It was streets ahead of the competition in our category of best provider of private banking and wealth management services to the mega-high net-worth, which we classify as individuals and families with more than $250 million in personal assets.

The survey also names the US firm best provider to UHNW individuals with $30 million to $250 million in assets. Its success was delivered at a particularly tough time for private bankers and wealth managers everywhere, as they navigate the still unfolding impact of Covid.

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Mary Callahan Erdoes, JPMorgan

Mary Callahan Erdoes, JPMorgan

Mary Callahan Erdoes, chief executive, JPMorgan asset and wealth management, spelled out the nature of the challenge to Euromoney after the results were announced. “Social distancing was a stark reminder of the importance of human connection,” she says. “That’s why we are focused on expanding our reach so that our advisers can deliver JPMorgan’s first-class advice, global insights and world-renowned platform to our clients locally.”

She adds: “We currently have 100 offices in 26 countries worldwide, and could not be more excited to be growing our team and our footprint. For over 150 years we have been perfecting our approach and we’re so happy that our clients – and our peers – see the value that our advisers bring to families and their businesses.”

JPMorgan secures the top spot in a host of other global categories, underlining its preeminence in this year’s survey. The global private banking community named it the leading provider of private wealth management services in research and asset allocation advice, investment management, capital markets and advisory, and serving business owners.

In Latin America, the bank is named best regional provider of wealth management services. It tops the rankings in a clutch of individual markets, including the US, UK, Saudi Arabia, Hong Kong, Italy, Egypt and Indonesia. The bank is also opening new private banking offices as wealth in leading economies migrates out to smaller cities and rural areas, due in large part to the impact of Covid. JPMorgan’s private bank is now represented in Stockholm, Amsterdam, Luxembourg and Copenhagen.

In total, it now boasts 56 pure-play private banking offices in the US as well as seven in Latin America, along with its presence in seven European markets, plus two in Asia, in Hong Kong and Singapore.

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