Here are results for the second-quarter and first-half of 2014 from private banks and wealth management segments of large financial institutions.

Below is a summary of the private banking and wealth management results of firms around the world. Not all the results are strictly comparable since some of the institutions are stand-alone institutions; others are part of larger organisations. Some of this information may be subsequently adjusted or revised.

Bank of America
The bank’s global wealth and investment management arm reported record revenue in the second quarter of this year of $4.6 billion, up from $4.499 billion in the same period a year ago, and up from $4.547 billion three months earlier. BoA said net income at the GWIM division stood at $724 million, a fall from $759 million a year earlier. Total assets under management were $878.7 billion, up from $841.8 billion at the end of March and up from $743.6 billion a year earlier.

This division logged a pre-tax margin of 25.1 per cent, which is the sixth consecutive quarter where the margin has been 25 per cent or over. There was a $8 million provision for credit losses in the latest quarter, narrower than the $15 million figure a year earlier. Asset management fees were $1.95 billion, up 15 per cent.

JP Morgan
Second-quarter revenues for its private banking arm rose 5 per cent year-on-year to $1.6 billion, following in the wake of Citi Private Bank’s report of a small rise in such revenue a day earlier. The private banking results of the US bank are contained in its asset management division. The division reported a 15 per cent year-on-year rise in client assets, reaching $2.5 trillion, or rise in $316 billion. Assets under management were $1.7 trillion, an increase of $237 billion, or 16 per cent, from the prior year, driven by higher markets and inflows to long-term client products. Custody, brokerage, administration and deposit balances were $766 billion, up $79 billion, or 11 per cent, from the prior year, due to the effect of higher market levels and custody inflows, partially offset by brokerage outflows.

Morgan Stanley
The wealth management arm reported pre-tax income from continuing operations of $767 million compared with $655 million in the second quarter of last year. The quarter’s pre-tax margin was 21 per cent. Net revenues for Q2 were $3.7 billion compared with $3.5 billion a year ago. Asset management fee revenues were $2.1 billion, up from $1.9 billion a year ago, primarily reflecting an increase in fee based assets and positive flows.

There were transactional revenues of $991 million, Morgan Stanley said, which dropped from $1.0 billion a year ago, reflecting lower commissions and fees and investment banking revenues due to lower underwriting activity in closed-end funds.

Wealth management logged net interest income of $578 million, up from $446 million a year ago on higher deposit and loan balances, Morgan Stanley said in its results announcement. Total compensation expense was $2.2 billion, which increased from $2.0 billion a year ago on higher revenues. Non-compensation expenses of $762 million decreased from $834 million a year ago, due mainly to the absence of costs in the prior year period incurred in conjunction with the purchase of the remaining interest in the [Smith Barney] joint venture.

Total client assets exceeded $2.0 trillion at quarter end. Client assets in fee based accounts of $762 billion increased by 21 per cent compared with the prior year quarter. Fee based asset flows for the quarter stood at $12.5 billion. There were a total of 16,316 wealth management representatives at the end of the quarter.

Goldman Sachs
It reported net revenues of $9.13 billion for the second quarter ending 30 June, up 6 per cent from the same period a year ago. Net earnings for the quarter were $2.04 billion, a rise of 5 per cent year-on-year.

Investment management net revenues were $1.44 billion for the second quarter of 2014, 8 per cent higher than the second quarter last year and 8 per cent lower than the first quarter of 2014. During the quarter, total assets under supervision increased $59 billion to $1.14 trillion, while long-term assets under supervision increased $44 billion, including net inflows of $21 billion in fixed income assets.

Citigroup
Private bank revenues increase 2 per cent for the second quarter to $656 million from the previous year as growth in client volumes was partially offset by the impact of spread compression. The bank has also paid $7 billion to resolve a US government probe over mortgage-backed securities. The bank gave few other details about the performance of its private banking arm in yesterday's results. Citi reported net income for the second quarter 2014 of $181 million compared to $4.2 billion for the second quarter 2013, while revenues of $19.3 billion declined 6 per cent from the prior-year period.

Wells Fargo
It reported that net income at its wealth, brokerage and retirement unit rose 25 per cent year-on-year to reach $544 million at end-June 2014. Revenue of $3.6 billion increased $289 million, or 9 per cent, from a year ago as strong growth in asset-based fees and net interest income, along with higher gains on deferred compensation plan investments, were partially offset by a decrease in brokerage transaction revenue.

BNY Mellon
The firm logged record-breaking assets under management in the second quarter of 2014 despite a decline in revenue and income. Its AuM stood at $1.64 trillion, surpassing its previous record figure of $1.58 trillion from December 2013. Its assets under custody and/or administration came in at $28.5 trillion, a 9 per cent year-on-year increase from the second quarter of 2013. However, its revenue slipped to $3.7 billion, a 7 per cent reduction (2 per cent adjusted) from a year ago, while income before taxes fell from $1.22 billion in 2Q13 to $0.81 billion.

Deutsche Bank
Deutsche Asset & Wealth Management, part of the bank, reported a 9 per cent year-on-year increase in net revenues in the second quarter, at €1.1 billion ($1.48 billion).
Across the entire Frankfurt-listed bank, it said results were hit by “significant litigation-related charges”. Together, these items resulted in a €2.6 billion loss before income taxes in the second quarter.

At DeAWM, the net revenue gain reflected €93 million of mark-to-market moves on policyholder positions on Abbey Life. Excluding that impact, net revenues were flat. Management fees rose in the quarter, driven by growth in average assets which were boosted by net inflows of €11 billion. Some of that impact was offset by a fall in performance and transaction fees in the alternatives and active space. Compared with the first quarter of 2014, net revenues (€66 million), rose 6 per cent.

BNP Paribas
The wealth and asset management arm of BNP Paribas, which was hit with a $8.97 billion settlement with the US over breaches of US sanctions against blacklisted nations, said pre-tax income, excluding exceptional items, was €196 million ($262 million) in the second quarter of 2014, up from €185 million a year ago. The bank also unveiled a raft of management changes, including the planned retirement of its group compliance head. Revenues in its wealth and asset management arm were €710 million, up from €696 million a year earlier. Wealth management assets under management stood at €295 billion.

Due to the fine, there was a net loss attributable to equity holders which came to -€4.317 billion (net income of €1.765 billion in the second quarter 2013). Excluding the impact of the one-off items, net income attributable to equity holders totalled €1.924 billion, up 23.2 per cent compared to the same period last year.

Societe Generale
The private banking arm generated net banking income of €201 million ($269.3 million) in the second three months of 2014, a fall of 10.8 per cent on the same period a year ago. Figures were hit by a “high comparison base” and benefited from a non-recurring income item. The fall also reflected the slowdown of the activity in Asia related to the disposal of private banking activities which is expected to be finalised in the fourth quarter of this year. At €116 billion at end-June, assets under management were higher for the fourth quarter in a row, by €2.2 billion in the quarter. They were driven by Europe, where client-driven activity was buoyant with net inflow of €1.1 billion, especially in France. The firm said its private banking gross margin remained at a “satisfactory level” of 101 basis points.

EFG International
It reported a net loss attributable to shareholders, under IFRS accounting rules, of SFr6.0 million ($6.64 million) in the first six months of this year due to one-off legal charges and provisions related to a US tax programme. Asia helped deliver double-digit growth rates for net new assets. When the legal and tax-related issues are stripped out, the firm’s underlying net profit was SFr57.6 million, down a touch from the SFr60.3 million figure reported a year ago.  

UBS
The wealth management arm suffered a 43 per cent fall in operating profit in the three months to end-June, at SFr355 million ($392 million), compared with the previous quarter, while overall group profits fell 13 per cent over the same period to SFr1.218 billion. Meanwhile, its American wealth unit report saw assets over $1 trillion for the first time.

Adjusted pre-tax profit in the quarter was SFr393 million. The figure was affected by provisions for litigation, regulatory and similar matters, the Zurich-listed bank said today. When those charges are taken out, performance was “resilient at SFr684 million”, UBS said. Lombard lending, mandate sales and invested assets all rose, but were offset by lower transaction-based income on low volatility and volumes.

Gross margin on invested assets fell 3 basis points to 84 bps; the adjusted cost/income ratio, the bank said, was above its target range of between 95 and 105 bps. Net new money remained “very strong” at SFr10.7 billion and the bank logged an annualised rate of net new money growth at the upper range of its target. The wealth management arm has an adjusted cost/income ratio of 80 per cent – below a global average for the industry last year of 83 per cent, as Scorpio Partnership, the consultancy, reported recently. (To see that report and its rankings of UBS and other wealth houses, see here.)

Within the Wealth Management Americas section, adjusted profit was $246 million, while the unit delivered “record revenues”. Operating profits fell 13 per cent quarter-on-quarter to SFr211 million. Invested assets rose above $1.0 trillion for the first time. Operating income increased, reflecting continued growth in managed account fees and higher net interest income. The Americas business’s operating costs included $44 million of charges related to litigation and regulatory matters. There were $2.5 billion of net outflows in the quarter, mainly as a result of clients taking out money to pay seasonal income tax bills. Total net new money was $3.2 billion. UBS said this business maintained its adjusted cost/income ratio and its gross income on invested assets within its target ranges.

Credit Suisse
The Private Banking & Wealth Management arm of the bank reported a loss before taxes of SFr749 million and net revenues of SFr3.046 billion. In its strategic businesses, this division reported income before taxes of SFr882 million and net revenues of SFr2.932 billion. Compared to the same quarter a year ago, income before taxes in strategic businesses dropped by 13 per cent, mainly driven by lower transaction- and performance-based revenues and lower net interest income, partially offset by lower operating expenses. In its non-strategic businesses, the division reported a loss before taxes of SFr1.631 billion as a result of the US legal settlement. Assets under management for the division were SFr1.329.7 trillion, up by SFr37.2 billion from the end of the first quarter of this year.

Julius Baer
Total client assets stood at SFr372 billion ($414 billion) at the end of June, a 7 per cent gain since the end of last year, while assets under management, at SFr274 billion, rose 8 per cent. The latest AuM figure included SFr54 billion of money from Bank of America’s non-US international wealth management (IWM) business that has been acquired and booked onto the Julius Baer platform. The growth in total AuM in the first six months was driven by the following factors: net new money of SFr7.5 billion (6 per cent annualised); the inclusion of SFr6 billion from the first-time consolidation of Brazilian subsidiary GPS, and positive market performance of SFr5.7 billion, partly offset by a small negative currency impact of SFr0.4 billion. Net new money was driven by continued net inflows from the growth markets and from the local businesses in Switzerland and Germany, while the inflows in the cross-border European business were more than offset by continued tax regularisations of legacy assets.

Vontobel
The firm said clients assets reached SFr172.7 billion ($190 billion) at the half-way stage of 2014, rising 6 per cent from the end of last year, driven by what it said was its successful hook-up with Asia’s ANZ and positive asset performance. Pre-tax profit of SFr88.8 million was unchanged from the same period a year ago, it said in a statement. When calculated on an IFRS basis, the net profit was SFr73.5 million. Because of tax issues, the figure fell 3 per cent on a year ago, but up sharply – 59 per cent – on the second half of 2013. The result translates into a normalised return on equity of 13.3 per cent. When adjusted for one-off factors, operating performance improved, rising 12 per cent year-on-year to SFr91.1 million.

Barclays
Barclays no longer issues specific results on its wealth management business following a reorganisation of its structure. The newly-formed Personal & Corporate Banking arm of Barclays which now includes its old wealth arm, said its total first-half 2014 income rose 1.0 per cent year-on-year to £4.361 billion ($7.386 billion).Net interest income at PCB rose 7 per cent year-on-year to £3.057 billion. Pre-tax profit rose 23 per cent to £1.468 billion. The cost/income ratio of the division was 61 per cent, down from 69 per cent at the end of December last year.

Royal Bank of Scotland
The bank said its private banking arm that contains Coutts logged an operating profit before impairment losses of £71 million ($120.7 million) in the three months to 30 June, down from £74 million in the previous three months. However, over the six months to 30 June this year, operating profits on the same basis were £145 million, up from £95 million a year earlier. For the entire banking group, operating profit before impairments were £2.97 billion in the six-month period to end-June, up from £2.858 billion on a year before. The profit attributable to ordinary and B shareholders almost trebled to £1.425 billion in the half-year period to 30 June, up from £535 million a year earlier.

Lloyds Banking Group
The bank reported a slump in profits after it revealed that it set aside a further £600 million ($1.01 billion) to deal with Payment Protection Insurance mis-selling. The news comes on top of the $370 million fine by UK and US authorities earlier this week for the manipulation of LIBOR and other benchmark failings. Lloyds Banking Group saw its profits before tax plummet by 59.5 per cent to £863 million for the six months to the end of June, compared to the same period a year ago. The firm said that underlying profit rose 32 per cent to £3.82 billion compared to the first half of 2013.

HSBC
Pre-tax global private banking profits jumped 237 per cent to $364 million in the first half, compared to $108 million at the end of June last year. On a constant currency change basis, the private bank profit rose by 206 per cent. At the same time, the entire HSBC group logged a 12 per cent drop in pre-tax profits for the first half of the year; the bank referred to the sheer volume of compliance and regulatory issues. The private banking arm accounts for 2.9 per cent of global pre-tax profit.

Standard Chartered
The private banking arm announced a total operating profit of $71 million in the six months to 30 June, down from $81 million a year earlier. Operating expenses in the period were $227 million, up from $213 a year earlier. Income from private banking clients primarily relates to wealth management and retail products, including lending, generated from clients across Asia, Africa and the Middle East. Operating income from private banking clients increased by $13 million, or 4 per cent, to $314 million. Excluding income from Korea, a market from which this segment existed in the second half of last year, income rose 8 per cent. This reflected strong growth across the Hong Kong and the advising centres, led by wealth management, lending and mortgage products and “good traction” in sales of structured notes, equities and funds leveraging on improved market sentiment, it said. These effects were partly offset by lower income from deposits due to margin compression.

Client assets under management (AuM) grew 13 per cent compared to H1 2013, now standing at $61 billion, driven by higher investment balances.

DBS
Its consumer banking and wealth management arm logged pre-tax profit of S$216 million ($172 million) in the second quarter of 2014, up from S$176 million a year earlier and S$202 million in the previous three-month period. This part of the bank reported net interest income of S$401 million in the latest quarter, up from S$364 million a year earlier, DBS. Total income was S$709 million, up from S$623 million a year earlier. Wealth management fees rose 19 per cent to a new high of $255 million. Fee income was maintained around the previous quarter’s levels as increases in wealth management and investment banking fees were offset by a decline in loan-related fees.

Oversea-Chinese Banking Corp
It reported a net profit after tax of S$921 million for the second quarter of 2014, an increase of 54 per cent from S$597 million a year ago. The record quarterly performance was underpinned by higher net interest income, strong non-interest income growth, mark-to-market gains in the insurance business and continued cost discipline. Non-interest income rose 40 per cent to S$850 million from S$606 million in 2Q13. Fee and commission income of S$353 million increased 2 per cent from a year ago, led by higher wealth management and trade-related income.

United Overseas Bank
The arm of UOB that includes private banking, reported a pre-tax profit in the first half of 2014 of S$609 million ($488 million), a rise from S$571 million in the same period a year earlier. Private banking is contained in the group retail division of UOB, one of the three large domestic Singapore banking groups along with DBS and Oversea-Chinese Banking Corp. (DBS is due to report its results today.) The share price of the bank ended up slightly. UOB didn’t provide specific figures on private banking, such as assets under management.

ANZ
The bank’s global wealth management business has seen “good underlying momentum across key business lines”, it said as the overall group reported an unaudited statutory net profit of A$5.0 billion ($4.66 billion) in the nine months to 30 June, up 8 per cent year-on-year.