Euromoney Private Banking Survey sees two local banks in top 5 in Mauritius
Under the ‘Best Private Banking Services overall’ in the Country Awards category, the Mauritius Post and Cooperative Bank Ltd (MPCB) came fourth while the State Bank of Mauritius stood fifth. (Image: Euromoney)
The annual private banking awards given out by UK-based financial publication Euromoney saw two local banks in Mauritius emerge among the top five providers of private banking services in the island economy, well known for being a regional financial services hub.
HSBC won top honours among private banks in Mauritius in Euromoney’s Private Banking Survey 2014, followed by South African asset management major Investec at second place, State Bank of India in the third, the Mauritius Post and Cooperative Bank Ltd (MPCB) at fourth place while Barclays and State Bank of Mauritius (SBM) were tied at fifth place.
Last year, under the same category (‘Best Private Banking Services overall’), HSBC had clinched first place, Mauritian banking major AfrAsia came second, London-based Barclays came third, SBM stood fourth, while Mauritius’ largest lender MCB (Mauritius Commercial Bank) had taken fifth place.
Besides, in this year’s rankings, AfrAsia lifted the trophies for ‘First Private Bank in Mauritius for managing fixed income portfolios’ and ‘Best Private equity investment bank.’
On the global front, Euromoney’s 2014 survey saw the big players gaining client assets in the prime international markets of London, New York, Singapore, Hong Kong, Zurich/Geneva and Dubai at the expense of regional banks.
UBS Wealth Management ranks once more as the best global private bank followed by Swiss rival Credit Suisse. JPMorgan remains third, while Citi moves up to fourth place globally, moving HSBC down a notch.
The top five banks are looking to asset management as the driver for market share.
Each now has a chief investment office that is responsible for macro asset allocation decisions for the bank’s clients. It is a move away from the traditional model of private banking.
“The industry is moving to a model of investment management for private wealth and away from just collecting funds,” says CEO of UBS Wealth Management, Jürg Zeltner.
Also, individual chief investment officers (CIOs) are now crucial to leading wealth managers.
JPMorgan seems to be winning the battle of asset management, having moved to a CIO model in the late 1990s.
It ranks first in equity and fixed-income portfolio management as well as in the alternative investments of private equity, hedge funds and real estate.
JPMorgan Private Bank’s chief executive Phil di Iorio says banks have often just leveraged investment views from asset management or the investment bank instead of having a dedicated CIO “who analyzes markets with a private client lens”.
In Asia, a key region for private banks, the global banks dominate the top 10 overall. UBS, Citi, Credit Suisse, HSBC and JPMorgan take the top five positions in Asia, in that order.
China Merchants Bank (CMB) won on its home turf in China, where CMB executive vice-president Liu Jianjun tells Euromoney in an interview that China’s banks will need to respond to the growing need of China’s wealthy for cross-border asset allocation and overseas market.
Euromoney`s Private Banking Awards provides a qualitative and quantitative review of the best services in private banking, global and regional and by areas of services, where it covers over 60 countries each year.
The awards are voted for by people who are experts in the industry – the private bankers themselves, and winning an award is a confirmation of excellence in wealth management, which banks use to promote their credential to clients.