“We have two fundamental types of activity: Wealth management, which generates very regular, long-term, predictable earnings, and more market dependent earnings,” Thiam told CNBC Friday.
“The challenge we had when we started was that the latter was just too big, it was 60 percent of the bank, so we were extremely volatile. What you’ve seen with these results is that the strategy that we’re driving of growing the wealth management (division) is starting to pay off.”
The bank warned in its outlook that while its wealth management is sheltered from the current economic environment of low volatility and geopolitical concerns, its other divisions could continue to feel these effects going forward.
“All the activities that are very dependent on volatility are suffering,” Thiam noted.
“That’s why we’re driving this strategy and focusing on the wealth management and focusing on businesses that, though still market dependent, are less so.
