Large Canadian banks are looking on wealth management to counter the slowdown in capital markets and weaker consumer borrowing, according to a report by Bloomberg.
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Barclays analyst John Aiken told Bloomberg that exposure to wealth management is probably going to be a key to outperformance in the fiscal fourth quarter that begins on 4 December.
"The improving global equity valuations as well as sentiment is likely going to see fairly significant growth in assets under management," Aiken added.
The report noted that wealth management comprised 10% to 20% of profits for the country’s six largest lenders in the first nine months of 2013 as per their financial statements.
John Kinsey of Caldwell Securities told Bloomberg, "The banks have been wanting to get into this area for some time, and with the demographics it’s an area they’re putting more and more focus on. It’s certainly a direction where they want to go."
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By GlobalDataAs per the report, global banks are also turning to wealth management as low interest rates and stringent rules on capital levels have lowered profits.
