THE WEALTH IMPERATIVE
Wealth Management Is a Shareholder Value Imperative
New analysis of 106 U.S. regional banks reveals a clear connection between wealth management scale and stronger returns, premium valuations, and long-term share-price performance.
Download the report to explore the findings and the actions banks can take to turn an existing advantage into measurable shareholder value.
INCLUDED IN THE REPORT
The hypothesis
Regional banks that scale wealth management as a core business line create stronger, more durable shareholder value than banks that remain dependent on net interest income.
The evidence
An original analysis of 106 U.S. regional banks comparing wealth management penetration with return on assets, return on equity, valuation, and share-price performance.
The key findings
Wealth-focused leaders achieved a 34-basis-point ROA advantage, a 208-basis-point ROE advantage, a 15% valuation premium, and an 18-percentage-point advantage in share-price performance.
The underlying challenge
Why regional banks continue to underinvest in wealth management despite advantages in customer access, trust, financial data, and existing relationships.
The path forward
A five-part agenda for repositioning wealth management from a supplemental offering to a strategic driver of earnings durability, relationship growth, and enterprise value.
“Fee income is getting compressed from all sources in most banks. Wealth has been a growing part of every organization and is the largest driver of non-interest income for the bank.”
- Chief Wealth Management Officer, $35B regional bank
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