Deutsche Bank Tumbles Down Private Bank Rankings After Tough 2016Deutsche Bank Tumbles Down Private Bank Rankings After Tough 2016
UBS kept its place as the world's largest private bank, followed by Bank of America, Morgan Stanley and Wells Fargo.
August 7, 2017
By Joshua Franklin
ZURICH, Aug 7 (Reuters) - Deutsche Bank droppedout of the world's top 15 private banks in 2016, a year markedby negative headlines for Germany's biggest lender, rankings bywealth management researcher Scorpio Partnership showed onMonday.
Private banking assets at Deutsche Bank fell 28 percent indollar terms to $227 billion at the end of 2016, sending ittumbling five places to 16th in Scorpio's rankings of the 25biggest private banks in the world.
Deutsche Bank faced a rocky 2016 in which the U.S.Department of Justice wanted the bank to pay $14 billion formis-selling toxic mortgage-backed securities before the2007-2009 financial crisis.
The demand rocked confidence in Deutsche Bank and triggeredbillions of dollars in withdrawals by clients. The bankeventually settled for $7.2 billion.
Swiss bank UBS kept its place as the world'sbiggest private bank with $2.06 trillion in assets undermanagement, Scorpio found, followed by Bank of America,Morgan Stanley and Wells Fargo.
Switzerland's Credit Suisse, which has prioritisedprivate banking under Chief Executive Tidjane Thiam, wasovertaken by Royal Bank of Canada and fell to sixth.
The biggest gainer on the list was China Merchants Bank, which rose five rungs to 15th. Bank of China alsoentered the list, in 24th place.
Overall, Scorpio found the biggest 25 private banks managed$13.3 trillion for clients with at least $1 million in assets,representing 63.2 percent of the market.
Operating income in the industry was virtually flat asprivate banks faced up to low and negative interest rates aswell as an increasing preference by wealthy clients for passiveinvestments.
(Reporting by Joshua Franklin; Editing by Susan Fenton)
