Global Private Banking Awards 2017: Winners’ Profiles – National Winners (Middle East)

Best Private Bank in Turkey
Akbank Private Banking

Last year saw big changes at Akbank, with the bank deciding to reduce the number of clients, branches and staff. Assets under management also fell, partially due to this reorganisation, but also due to the lira depreciating against the dollar.

The hope is to attract a more niche clientele by offering a more sophisticated service, generating a higher profit per client ratio in the process. The launch of a new ultra high net worth (UHNW) segment, with a minimum account size of TRY3m ($840,000), was a key part of this reorganisation.

“By focusing on the service model and products for UHNW clients, we aim to upgrade the private banking service quality and target audience,” says Levent Celebioglu, executive vice president of corporate and private banking at Akbank.

“By upgrading our minimum account opening limits we will be able to provide more qualified services to a smaller number of clients but with more wealth, through an efficient and profitable client wealth management model.”

Clients with wealth below the TRY3m limit will be classed as affluent clients. Private banking services are offered through seven dedicated private banking branches across Turkey, with five in Istanbul and one each in Ankara and Izmir. Private banking corners are also located in the Zorlu and Bursa FSM branches.

Akbank’s clients are drawn from Turkey’s leading communities and families and mostly reside in Istanbul. The needs and demands of these individuals have evolved to a point where family wealth has became more important, he explains. 

“Turkey has been through a great deal in the last few years, and wealthy communities now want to protect and preserve their wealth and transfer it through the generations,” says Mr Celebioglu. The bank’s UHNW segment and its Next Generation Programme, which aims to educate the next generation on subjects such as investment diversification, the responsibility of wealth and philanthropy, both developed from this idea. ES

Best Private Bank in the United Arab Emirates;
Best Private Bank for Islamic Services
Abu Dhabi Islamic Bank 

Abu Dhabi Islamic Bank (ADIB) has managed to attract new clients and increase market share, even in a tough operating environment. The bank has now a balanced customer base, across Abu Dhabi, Dubai and the Northern Emirates, and of UAE nationals, as well as Arab, Asian and Western expatriates.

ADIB continues to invest significantly in customer experience, introducing new ways to enhance its offering to existing clients, as well as targeting new ones in both the expatriate and UAE national segments, through a strong emphasis on digital delivery.

The bank has invested heavily in its digital infrastructure. “To that end our biggest transformation yet has been partnering with Fidor Bank to launch the region’s first community-based digital bank,” says Mohammed Azab, head of private banking at ADIB. 

“The new online platform is designed to fit the lifestyle of millennial consumers, as well as those looking for a digital offering that matches their banking needs.” 

When it comes to portfolio management, ADIB Private Banking is committed to open architecture and it does not offer discretionary asset management. It has developed a series of locally oriented advisory portfolios that focus on sukuk and domestic equities. Being an Islamic bank, it carefully evaluates all the products and services offered to clients to make sure they are in line with their shared values. 

Mr Azab admits Islamic banking still presents some challenges, highlighting the need for changing perceptions in order to become truly mainstream. “We are confident that we are on track to achieve this, as we did following our acquisition of Barclays Bank’s UAE retail operation [in 2014]. This was proof that customers of conventional banks can easily be integrated into an Islamic bank if we offer attractive products and an excellent customer experience,” he says.

“Our research shows that Islamic banks strike a chord with people, not because of religion, but because of ethics. People are even more willing to use Islamic financial services when banks demonstrate their ideals of partnership, respect for the interests of the customer, and simple, transparent and honest business practices,” Mr Azab adds. PG

Best Private Bank in Kuwait;
Best Private Bank in Bahrain
Ahli United Bank B.S.C.

Ahli United Bank (AUB) has 140 branches across Bahrain, the UK, Kuwait, Egypt, Oman, Iraq, Libya and the UAE. In March 2016, the bank launched its operations in the Dubai International Financial Centre (DIFC) to offer private banking, wealth management, corporate banking treasury, trade finance and cross-border products and services to clients based in the UAE and the Middle East. 

As of Dec 2016, AuM reached $3.4bn, lower than the previous year mainly due to the depreciation of sterling and the euro versus the dollar. The number of private banking and wealth management clients remained stable at just under 7,000.

One of the bank’s main areas of focus in 2016 was to continue the implementation of its strategy of “creating value through segmentation”. AUB has a special focus on the ultra high net worth segment and is specifically targeting younger investors by providing new investment opportunities.

“We have introduced new products to our clients keeping in mind their specific investment needs and risk appetite. One of our key initiatives [in 2016] was to develop a US real estate private equity product, and we launched our first product investing in US senior housing,” says Mark Hirst, the newly appointed deputy group CEO of the bank’s private banking and wealth management business.

“While we are very strong in both Bahrain and Kuwait, one significant difference is that in Kuwait we are exclusively an Islamic bank, offering Sharia-compliant products and services to our private banking clients. In Bahrain we offer both conventional and Islamic products and services,” Mr Hirst adds.

AUB’s long-term plans include entering Saudi Arabia, Turkey and Switzerland, the aim being to become a stronger regional private banking player with global reach. PG

Best Private Bank in Oman
Bank Muscat SAOG

Bank Muscat Private Banking has maintained a leading position in Oman for more than 15 years. According to the company, it is the only local bank offering the complete suite of private banking products and services, ranging from investment across asset classes, to offshore banking solutions and real estate investments. 

Bank Muscat has benefited from the rapid growth in private wealth across the Gulf Cooperation Council (GCC) and Oman region over the last decade, attracting more than $850m in client assets. Despite the challenging economic environment, the business performed well last year, with significant growth both in terms of AuM and fee income. 

Targeting clients with a minimum of $1m in assets, the bank offers a diversified suite of products and services across geographies and asset classes, including equity, fixed income, mutual funds and alternative investments. It also offers offshore banking and investment in real estate across various geographies through strategic global tie-ups.

Although the bank’s attention is currently on its Oman operations, its relationship managers service a diverse group of Omani and expatriate clients, from different regions and nationalities. The bank takes pride in the quality of its customer service and invests time and resources in the continuous development and training of team members. PG

Best Private Bank in Lebanon;
Best Private Bank in the Middle East for Customer Service
Audi Private Bank

Audi Private Bank is the largest wealth manager in the relatively fragmented Lebanese market, which is characterised by stand-alone players. International banks have a relatively small market share, with some deciding in recent years that the Lebanese market is too small to be covered locally, according to an assessment by Audi Private Bank of the market that echoes the views of other observers. 

The bank credits its strong customer service partly to its proximity to the client. The relationship manager meets their client on a regular basis, but in addition, the investment adviser who prepares the portfolio review is most often in Lebanon too.

Another important part of its customer service is to inject a note of caution into the approach of its clients. “We tend to be cautious in our asset allocation and while advising clients on managing their money,” says a spokesman at the bank. “We prefer to have a longer-term vision and sometimes even to temper our client’s willingness to take risks in view of upcoming market turbulence. We also practise diversification and limit the use of leverage when the portfolio doesn’t have the appropriate hedges or ability to take risks.”

The bank makes much of its close monitoring of relationship managers through a new business intelligence tool. However, it is keen to emphasise that rather than using this as an engine for hiring and firing, “we are little inclined to increase staff volatility as one of our key strengths is the strong and durable relationship our bankers build with their clients”. 

Instead, “we prefer to look for solutions to boost relationship manager performance with the use of training and coaching, and of increased assistance from the investment office.” DT