Private banking in Asia is forecast to grow at a steady 9 per cent annually over the next five years despite turbulence in financial markets, a consulting firm's study found Thursday. ( dpa )
"We are confident that the growth potential for Asia will remain strong," said Oliver Wyman's report, citing considerable untapped potential in the region.
The 9-per-cent rate is similar to the rate of growth over the past five years.
The industry would continue to benefit from untapped market potential as the percentage of wealth being professionally managed or advised is relatively low at 37 per cent, the firm said. The global professional management rate is about 50 per cent.
"We expect to see Asia's wealth grow by another 4 trillion US dollars over the next five years to reach 13 trillion US dollars by 2012," The Business Times quoted David Noble, Oliver Wyman's head of financial services in the Asia-Pacific, as saying.
"We are aware of the higher volatility of the Asian equity markets," Wyman told the newspaper " If there is a global recession, clearly there will be short-term consequences."
He ruled out a fundamental failure of the financial services business model and said long-term trends would remain intact.
Globally, wealth held by people with high net worths was expected to increase from 50 trillion US dollars in 2007 to 75 trillion US dollars by 2012, the report said.
An estimated 16 per cent of assets was held offshore in 2007, the study said. In Asia, 9 per cent was held offshore, mainly in Singapore and Hong Kong.