Here is a recap of the figures from major banking groups for the fourth quarter of 2023 and for the whole of last year.

Below is a summary of the results from a range of the major banking groups and some other financial actors around the world. The results focus on the largest institutions which provide wealth management. Not all banks report on a calendar year schedule, and not all the institutions are alike, so the results from standalone institutions should be viewed differently from wealth management results embedded within a larger group. These results may be subsequently revised. Not all the banks reported on the same day, so the exchange rate comparisons with the dollar have been removed. We hope readers find it useful to see these figures collated in one article. To comment, email tom.burroughes@wealthbriefing.com

JP Morgan
Net income in its asset and wealth management arm – including its private bank – rose 7 per cent year-on-year to $1.217 billion. Net revenue in the AWM business rose 11 per cent to $5.095 billion.

Last year, JP Morgan bought crisis-hit First Republic – one of several banks, such as Silicon Valley Bank that were hit by the impact of rising interest rates, among other factors. When the First Republic acquisition is taken out, net revenue rose 2 per cent on a year ago.

Revenue rose on the back of higher management fees resulting from strong net inflows and higher average market levels, although lower net interest income offset some of that impact. On the cost side of the equation, noninterest rose 12 per cent, or 11 per cent excluding the First Republic deal, driven by higher compensation, growth in private banker advisor teams, and the effect of closing the JP Morgan Asset Management China acquisition. Total assets under management stood at $3.4 trillion; total client assets were $5 trillion at the end of December 2023, each rising 24 per cent.

Bank of America
The global wealth and investment management arm reported net income of $1.033 billion for the third quarter of this year, slipping from $1.19 billion a year ago but up from $978 million in Q2 2023. Total revenue – $5.321 billion – fell from $5.429 billion a year earlier. This division of Bank of America said it made a $6 million provision for credit losses in Q3, against a $37 million net release a year before. 

Total asset under management flows stood at $14 billion in the latest quarter. Client balances were $3.6 trillion, up 9 per cent as markets and inflows increased. 

Within the private banking segment, BoA said client balances stood at $573 billion, and AuM was $340 billion. During the quarter, net new client relationships rose 8 per cent, amounting to 600 net new relationships. On the Merrill Wealth Management side, client balances were $3 billion and AuM was $1.2 trillion.

Citigroup 
At the private banking side, Citigroup said private banking revenues, net of interest costs, fell 10 per cent to $542 million in Q4 2023. Throughout the whole wealth arm (private bank, Wealth at Work, and Citigold), the figure fell 3 per cent to $1.647 billion. Private banking revenues fell as a result of lower deposit spreads and weaker loan and deposit volumes. This was partly offset by higher investment revenue.

“Wealth revenues were down in 2023 and we fully recognize that this business isn’t where it needs to be,” Jane Fraser, CEO, said in the bank’s statement. Net income in the wealth business shrank by 97 per cent to $5 million.

Morgan Stanley 
The firm delivered a rise in full-year and fourth-quarter 2023 net revenues for its wealth management business, while fee-based asset flows rose. Q4 2023 net revenues in wealth management were $6.645 billion, up from $6.626 billion in the same quarter a year earlier. In 2023, net revenue rose to $26.268 billion from $24.417 billion in 2022. Fee-based client assets stood at $1.983 trillion at the end of December 2023. Fee-based asset flows were $41.6 billion in Q4, doubling from $20.4 billion a year earlier. However, full-year figures showed that these asset flows decelerated to $109.2 billion from $162.8 billion in 2022. Net new assets dipped to $47.5 billion in Q4 2023 from $51.6 billion. The wealth business had a pre-tax margin of 24.9 per cent.

BNY Mellon
The market and wealth services arm, including groups such as its Pershing business, logged pre-tax income in Q4 2023 of $632 million, up 4 per cent. Pershing’s investment services fees rose 1 per cent to $506 million. Total revenues in the division rose 7 per cent to $1.499 billion. 

Within the wealth and investment arm, total fee revenue slipped 3 per cent to $753 million. Total wealth management revenues fell 3 per cent to $268 million in Q4. The division logged a loss of $5 million before tax, against a profit of $125 million in the same quarter a year earlier. 

Northern Trust 
Earnings allocated to common shareholders fell 28 per cent year-on-year in Q4 2023 to $106.5 million. Trust, investment and other servicing fees rose 5 per cent to $1.09 billion. Total revenue was $1.563 billion, rising 2 per cent. Assets under management at December 31 were $1.434 trillion, rising 15 per cent. Total assets under custody/administration rose 13 per cent to $15.4 trillion.

Wells Fargo
The wealth and investment business logged net income for Q4 2023 of $491 million, falling 31 per cent from a year ago. Net interest income fell 19 per cent to $906 million; non-interest income rose 7 per cent year-on-year to $2.754 billion. Total revenue dipped 1 per cent to $3.66 billion. Total client assets stood at $2.084 trillion, rising 12 per cent from the end of December 2022.

BlackRock
The world’s largest asset manager said its net income in the fourth quarter of 2023 was $1.375 billion, up from $1.259 billion a year before. For the whole of 2023, net income rose to $5.5 billion from $5.178 billion in 2022. Total assets under management stood at just over $10 trillion; BlackRock logged net inflows of $95.647 billion in Q4 2023, down from $306.57 billion in 2022.