Custodian and administration sector reports solid growth
Australia's custodian and administration sector has hit $2.16 trillion in total assets under custody for Australian investors, growing by 6.7 per cent for the six months to 30 June.
In its latest half yearly report, the Australian Custodial Services Association found that NAB Asset Servicing retained its position as the largest overall provider with $556 billion in total assets under custody for Australian investors (up 2.2 per cent for the six months), followed by J.P. Morgan ($394 billion, up 5 per cent) and BNP Paribas ($313 billion, up 5.7 per cent).
Citigroup and Bond Street saw notable increases in assets under custody, up 21 per cent and 31 per cent, respectively.
In the market break-up, the half-year saw continued growth for non-Australian assets under custody for Australian investors (up 10.2 per cent to just over $600 billion), spurred on largely by the falling local dollar and rising global equity markets.
Australian assets under custody for Australian investors also posted strong growth, adding 5.5 per cent to reach $1.56 trillion in assets under custody.
Reflecting slowing foreign appetite for Australian assets, the sub custody market — Australian assets under custody for foreign clients — rose only 0.1 per cent.
HSBC Bank remains the dominant sub-custodian in Australia with $576 billion in sub-custody assets.
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