Asia wealth boom delights int'l private banks

By Saeed Azhar and Jeffrey Hodgson

SINGAPORE/HONG KONG (Reuters) - Soaring wealth, high savings and massive potential have made Asia the world's hottest market for the private banks and money managers that cater to the world's richest.

The region is minting millionaires at a faster rate than the developed markets of North America and Europe, and with much larger populations and higher economic growth, bankers say the gap in absolute terms is shrinking.

"The market size in the next 20 years in Asia-Pacific will outgrow that of Europe. The potential will be bigger," Kathryn Shih, who heads Swiss bank UBS' (UBSN.VX: Quote, Profile, Research, Stock Buzz) wealth management arm in the region, told a news conference in Singapore last month.

Private bankers from around the world will gather in Tokyo and Geneva on Tuesday and Wednesday for the Reuters Wealth Management Summit to discuss their plans to grasp the opportunity presented by this growing wealth.

The number of "high-net-worth individuals" in Asia -- people with more than $1 million in financial assets excluding their homes -- grew 7.3 percent to 2.4 million in 2005, according to a report by Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) and consultants Capgemini.

That topped a 6.9 percent rise in North America, which had 2.9 million, and 4.5 percent in Europe, which had 2.8 million.

The gains are expected to continue for a region that is home to four of the 12 biggest economies in the world -- Japan, China, South Korea and India.

The International Monetary Fund projects Asian economies, led by China, will grow at a pace of 7.3 percent and 7.1 in 2006 and 2007.  Continued...