Deutsche Bank has dropped out of the world’s top 15 private banks in 2016, according to rankings by wealth management researcher Scorpio Partnership.
In what has been a difficult year for Germany’s biggest lender, the Scorpio figures show that private banking assets at Deutsche Bank fell 28% in dollar terms to US$227 bn at the end of 2016. This saw Deutsche Bank drop five places to 16th in Scorpio’s rankings of the 25 biggest private banks in the world (see below left).
Deutsche Bank sold a wealth management business in the United States last year and withdrew from a number of countries, with the bank blaming the majority of its fall in assets as being stemmed from the sale.
However, as reported, Deutsche Bank dealt with a series of issues in 2016 with the US Department of Justice originally demanding that the bank pay US$14bn for mis-selling so-called mortgage-backed securities, before the 2007-2009 financial crisis.
The bank eventually settled for US$7.2bn, but not before billions of dollars were also lost in withdrawals by clients.
Bank of America, Morgan Stanley, Wells Fargo and Royal Bank of Canada made up the top five, with Switzerland’s Credit Suisse, which has prioritized private banking under chief executive Tidjane Thiam, falling to sixth.
The biggest gainer on the list was China Merchants Bank, which rose five places to 15th. Bank of China also entered the list for the first time, in 24th place.
Overall, Scorpio found the biggest 25 private banks managed US$13.3trn for clients, with at clients with at least US$1m in assets, representing 63.2% of the market.