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May 16, 2019

UK private banking and wealth management families lose £1.1 billion

By Oliver Williams

Some of the UK’s richest bank owners have lost a collective £1.1 billion of their net worth, according to wealth estimates calculated by The Sunday Times.

The figure of £1.1 billion is shared between 10 individuals and families who made it into The Sunday Times list of the 1,000 richest people in the UK, which was published on Sunday.

Private Banker International went through the list and calculated the total losses and gains of the net worth of 10 families and individuals over the past year.

The shortlist of 10 is based on those who either started or own major shareholdings in UK private banks and investment/wealth managers.

Richest bank owners

Source: The Sunday Times

 

Richest bank owners in the UK: Biggest Losses

The biggest hole in the wallets of Britain’s largest banking families was the Schroders’ family loss of £1.2 billion.

Bruno Schroder, the wealthiest member of the family and longest-serving board member at the bank, died earlier this year.

Then, pre-tax profits at Schroders fell by 15% in 2018, further hitting the share price, which has seen the family’s 48% stake in Schroders fall £1.3 billion to about £3.4 billion in a year.

Metro Bank has also seen a fall in its share price recently. While predominantly a retail operation, Metro has made advances into the private banking space and its owners, Vernon and Shirley Hill, have therefore been included in this list.

Another firm bridging the retail-wealth management space is Hargreaves Lansdown, whose two co-founders appear on The Sunday Times Rich List.

However, while Peter Hargreaves saw his wealth fall by £118 million, his business partner, Steve Lansdown had his remain unchanged at £1.72 billion.

Also unchanged is the wealth of the Fleming family, whose office, Stonehage Fleming, is Europe’s largest multi-family office, advising on more than £40 billion of assets.

Big wins at old banks

The biggest winners over the past 12 months were some of the country’s oldest banking families.

Lord Rothschild added £69 million to his wealth, while Sir Evelyn Rothschild and Lady Rothschild saw their wealth go up by £10 million.

Both branches of the Rothschild families are connected to Rothschild & Co, however, they each have their separate economic interests that account for their net worth fluctuating. Sir Evelyn once headed the British arm of the bank before stepping down and collecting £134 million for his shares in 2007.

Owners of Britain’s oldest private bank saw an increase to their net worth as well. The Hoare family behind C Hoare & Co had their wealth go up by £40 million. The bank made a £25.9 million profit last year.

Sir Henry Angest, the chairman of Arbuthnot Latham, had his net worth go up by £34 million after the banking group’s profits increase by a third in 2018.

However, the biggest winner in the list compiled by PBI, was an entrepreneur who started his firm in 1995.

AJ Bell is an online investment platform, which floated on the London Stock Exchange at the end of last year. Its founder, Andy Bell, saw his wealth increase by £185 million after he sold a £25m stake during the IPO.

The share price of AJ Bell has since doubled, increasing the value of Bell’s remaining shareholding to £295m.

 

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