Private Banking in Asia

and the Philippines5 October 2012

InterContinental Manila

Where are the HNW Households?

Where are the UHNW Households?

Source: The New Normal for Asia, Wealth-X

Asia-Pacific became the largest home to HNWIs in 2011

(World Wealth Report 2012)

Asia keeps its funds in Asia

Shift from Eurozone/US to Asia

HNW household wealth in USD trillions

Growth in Asia Private BankingGrowth of HNW Household wealth (%)

Emerging Markets driving growth in Private Banking

Global HNW House-hold Wealth

Private Banking Critical Success Factors

i. Open architecture– Broad products

– Opens doors to complementary services (e.g. Cash Management, Trade Finance, Treasury, Investment Banking, Asset Management, Corporate Banking)

ii. Diverse pool of specialists

iii.Holistic advisory

iv.Reputation / Integrity

Asia Private Banking Best Practices

• Client-Advisor ratio

• Client trust – Understanding the fragility of Client trust

• Segmentation not only based on assets

• Digital transformation: Access to information

• Coordination across organizational boundaries

• Product specialist pools supporting Private Banking Relationship Managers

Serving the HNWI in AsiaBest Practice / Current Models

CHF 988bn in AuM

Credit Suisse

Standard Chartered

* Philippines

* Estimate of the Philippines’ standing

Development of Needs of HNW Clients across Asian countries

In the Philippines

Increased Flow of Investments

Economic Growth

Where are we?Ranked based on Potential / Opportunities

Source: Datamonitor 2012, Benchmarking Asia’s Wealth Markets

Economic Growth 2010-2050

Source: The Wealth Report 2012, Knight Frank Research and Citi Private Bank

Top 10 % Bottom 10 %

5 Vietnam 7.5 1 Spain 2.0

6 Philippines

7.3 2 France 2.0

8 Indonesia 6.8 10 Japan 1.0

Source: BSP Source: BSP

Source: asiabondsonline.adb.org

Bonds issued UITF / MF

PH-LCY Bonds

Summary

• Growth is in Asia – Asian Private Banking model

• Holistic approach– From the product-driven approach to financial

advisory

• Opportunities to support the growth of Private Banking in the Philippines