Banking on asset management?
As banks adjust to new regulations, they could look to their asset management devisions to fill profitability gaps.
Source: Company reports
Among large banks expected to be affected by new regulations, UBS and Morgan Stanley have seen their assets under management climb 6.2% and 5.1%, respectively in the year ended June 30.
Still to be seen is whether asset management divisions will contribute more to the top and bottom lines of these banks. In the most recent quarter, their average contribution to total revenue was 9.9%, and the median contribution to total net income was 8%.
