Bank of America, Morgan Stanley Lead Private Bank Rankings

Bank of America Corp. still heads a ranking of the world’s 20 biggest wealth managers while BNP Paribas SA (BNP) climbed two positions to ninth place, according to Scorpio Partnership.

Morgan Stanley (MS) was second, followed by Zurich-based UBS AG (UBSN), which was one of five Swiss private banks in the top 20, London-based Scorpio said in a survey of almost 200 institutions published today.

Market gains helped boost assets managed by these banks by 11 percent last year with the top 20 overseeing a combined $11.1 trillion, Scorpio said. The rate of net new money inflows declined on average by almost 19 percent from 2009 and many banks saw margins squeezed, according to Scorpio.

“If there were to be another market crisis of even a minor scale, we would be very concerned for many institutions and their future,” said Sebastian Dovey, a partner at Scorpio. “Many firms need to upgrade and modernize or else call time on their exposure to this client segment.”

The industry’s average cost-to-income ratio worsened by almost 1 percentage point to 79.76 percent last year as expenses increased, especially among smaller wealth managers, the survey showed.

Following is a table of the world’s biggest wealth managers, based on end-2010 data from the Scorpio survey. Scorpio restated some 2009 figures in line with adjusted data provided by banks including UBS and JPMorgan Chase & Co.

Rank    Firm                  AuM       AuM       Rank
2010                          ($bln)    % Chg.    Chg.

1    Bank of America Corp.    1,945     4.2       --
2    Morgan Stanley           1,628     8         --
3    UBS                      1,560     6.6       --
4    Wells Fargo & Co.        1,398    14.8       --
5    Credit Suisse Group        865    11.6       --
6    Royal Bank of Canada       435    14.8       --
7    HSBC Holdings Plc          390     6.3       --
8    Deutsche Bank              369    35.3       --
9    BNP Paribas                340    45.7       +2
10   JPMorgan Chase & Co.       284     5.2       −1
11   Pictet & Cie.              268    10.1       −1
12   Goldman Sachs Group        229    -0.9       --
13   ABN Amro Bank              220    23.8       +1
14   Barclays Bank Plc          186     1.9       −1
15   Julius Baer Group          182    22.5       +2
16   Credit Agricole            172     4.2       −1
17   Bank of NY Mellon          166     7.8       −1
18   Northern Trust Corp.       154     6.3       --
19   Lombard Odier              153     7.8       --
20   Citigroup Inc.             141    15.4       +1

To contact the reporter on this story: Giles Broom in Zurich at gbroom@bloomberg.net

To contact the editor responsible for this story: Frank Connelly in Paris at fconnelly@bloomberg.net

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