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July 31, 2020updated 04 Aug 2020 9:47am

Coutts witnesses rises in AuM and deposits in H1 2020

By Patrick Brusnahan

Private bank Coutts has seen gross AuM inflows of £1.6bn ($2.1bn) in H1 2020, 33% higher year-on-year.

In addition, AuM and AuMA increased by £0.7bn (3%) and £0.9bn (3%) respectively. This was attributed to stead net new business inflows, strong investment performance and also new client acquisition.

In H1 2020, Coutts deposits increased by £1.5bn, a 5% rise from this time in 2019.

Furthermore, private banking generated a H1 2020 return on equity of 8.2% and an operating profit of £84m. This was despite a £27m credit imparment charge in Q2 2020.

Peter Flavel, CEO private banking, said: “For our investment inflows to have improved year on year and to have achieved this level of client growth in such a volatile and unprecedented environment, is most gratifying. It demonstrates the strength of our Coutts and Adam brands, the quality of our client franchise, their valued support plus the close advisor relationships we have with our clients, many of which cover multiple family generations.

“Our continued focus on delivering brilliant day to day banking supported by Coutts 24 and our digital platform, flexible lending for the most complex of our client needs and our reliable and dependable investments demonstrates that we are ‘more than a bank’ to our clients. This is perhaps best evidenced by our highest ever NPS results in H1.

“Despite the challenging circumstances brought about by the pandemic, I am also most encouraged to report we onboarded more than 1,500 new Clients in H1 2020. Over 40% of which were achieved in Q2, demonstrating the strength of our brands and our balance sheets in these volatile times. There is no doubt, however, that Covid-19 has had a significant impact on all financial services businesses, both directly and through its effect on financial markets. This is underlined by our latest financial results which include a £27m Q2 credit impairment charge driven by our expectation of a deterioration in the economic outlook.”

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