New data suggests that even the world's largest wealth management houses are struggling to drive up operating income.

Operating income at 200 wealth management houses across the world grew by an average of just 0.04 per cent in 2016, despite assets under management swelling 4 per cent, according to new data from industry consultancy Scorpio Partnership.

Cost/income ratios also dipped below 80 per cent for the first time since 2012, as private banks moved to curtail costs amid growing regulatory and compliance pressures, according to Scorpio’s Global Private Banking Benchmark.

Of the world’s top 25 private banks by AuM, Deutsche Bank, which last year announced a major restructure after it shelled out billions resolving crisis-era lawsuits, saw its funds fall by nearly 26 per cent to almost $230 billion. The bank also sold its private client services operation in the US in pursuit of a simpler business model.

At the opposite end of the spectrum was China Merchants Bank, which saw its AuM balloon nearly a third to just shy of $240 billion. Generally, Asia’s private banks gained momentum last year and outpaced contenders from other parts of the world - a sign that the world’s wealth is continuing to move East. Bank of China entered the ranking, as it managed just under $144 billion.

By contrast, many European wealth management houses saw their AuM tumble in 2016, due to a combination of internal restructures, reputational challenges and movements away from non-core markets, Scorpio said.

The top 25 wealth institutions held some $13.3 trillion of private banking funds, accounting for almost two-thirds of the entire market share. UBS topped the charts, with $2.1 trillion of AuM, followed by Bank of America and Morgan Stanley, both of which had just under $2 trillion. Seven out of the top 10 were focused on North America.

AuM grew at 22 of the 25 firms listed.

“As advanced technology continues to reshape the wealth management industry, firms will be able to recognize cost savings through process organization,” Caroline Burkart, director at Scorpio Partnership, said. “The challenge going forward will be managing the revenue side of the profits equation. These firms are experiencing pricing pressure, driven by regulations, the trend for passive investing and the wave of lower-fee competitor models entering the market.”