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Wealthy Britons have been shunning private banks which have taken state bailouts in favour of those which have prospered in the credit crunch, an authoritative survey showed today.
Coutts and UBS, which required major bailouts, saw private-client assets under management tumble in the annual survey by Private Asset Managers.
But JP Morgan, one of the best-performing Wall Street banks, saw UK assets jump by almost a third, or £9.7 billion, to £40 billion last year.
JP Morgan, which focuses on ultra-rich clients, has overtaken UBS to be the third biggest private bank in Britain.
Barclays, which avoided having to take government help, remains the top private bank as assets rose £1.9 billion to £50.8 billion.
Coutts, the second-biggest private bank, saw client funds dive £2.3 billion to £42.3 billion. It suffered because of its links with parent company Royal Bank of Scotland and also the campaign by aggrieved investor Sir Keith Mills. UBS assets dipped £1 billion to £35.9 billion.
PAM chairman James Anderson said some private banks lost clients because of “reputational damage”.
Total private client assets under management at the top 40 UK wealth managers fell £41.7 billion to £409.8 billion last year. While many clients lost money, some switched to small boutique firms. Anderson added: “JP Morgan's growth in 2008 was spectacular. The firm stole a march on its competitors.”
