Boston Private Financial Holdings, which owns the Boston Private Wealth Management Group of independently-operated financial services firms across the US, posted a 27.6 per cent increase in net income for the third quarter 2007 to $17.4 million, compared to $13.7 million a year ago.

Total revenues for the third quarter 2007 increased 19.2 per cent to $105.5 million, compared to $88.5 million a year ago.

Total assets under management and advisory from consolidated and unconsolidated affiliates increased 21 per cent, or $6.5 billion, over the prior year to $37.2 billion.

On a consolidated basis, Boston Private had net inflows of funds from the investment managers and banks of approximately $351 million related to net new assets and an increase of approximately $656 million related to positive market action for the quarter.

The increase in net income was driven by growth across the company's three key disciplines: private banking up 19.3 per cent, wealth advisory up 111.2 per cent and investment management up 28 per cent.

Private Banking comprises Borel Private Bank & Trust Company in San Francisco, Boston Private Bank & Trust Company in Boston, Charter Bank in Seattle, First Private Bank & Trust in Los Angeles and Gibraltar Private Bank & Trust in Miami and New York.

Wealth Advisory comprises Bingham Osborn & Scarborough and Sand Hill Advisors in San Francisco, Coldstream Capital Management in Seattle, KLS Professional Advisors Group in New York, and RINET Company in Boston.

Investment Management comprises Anchor Capital Advisors, Anchor/Russell, Boston Private Value Investors and Westfield Capital Management Company in Boston, and Dalton Greiner Hartman Maher & Co in New York.

Timothy Vaill, chairman and chief executive, said: "We had our strongest quarter ever driven by solid investment performance, positive asset flows, loan growth, and expense controls. Our results are a testament to the strength of our diversification strategy.”