Wealth Management: Is it Contributing to Your Bottom Line?

April 25, 2017 at 2:00 PM

Wealth management can be a source of significant fee income. Indeed, at banks with top producing wealth units, the wealth management businesses contribute close to 10% of consolidated revenue. In CPG’s experience, high-performing wealth groups have several common characteristics:

  • A consistent commitment from bank executives;
  • Deep integration and collaboration of wealth management with other business lines;
  • Comprehensive customer relationship services including financial planning, investment management, and estate planning;
  • A competitive distinction by offering a consistent and positive client experience;
  • Clearly identified customer segments;
  • Open architecture investment platforms and full digital capabilities; and,
  • Outsourced noncore back-office operations.


Source: CPG analysis of data provided by SNL, Financial, LC 2017. Data are for the twelve months-ended December 31, 2016.  Institutions included in the analysis are top-tier consolidated institutions with assets of between $1 billion and $10 billion. Excludes institutions with no wealth management revenue, fewer than eight branches, and a total loans to assets ratio of less than 40%.

  1. Defined as the median of institutions that are above the 75th percentile in terms of wealth management revenue as a percentage of total bank revenue.
  2. Defined as bank noninterest income derived from fiduciary activities, fees & commission from Sec Brokerage, F&C annuities and sales, insurance & reinsurance underwriting, and other insurance income.
  3. Defined as summation of bank net interest income and total noninterest income.




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