The Private Banks That Disappeared in 2018
Several private banks have been bought and sold in recent months in Switzerland. finews.asia provides reasons why consolidation will likely continue in 2019.
Five years ago, Zeno Staub (pictured below) made headlines with his forecast that a third of all Swiss banks would soon disappear. Exaggerated and arrogant were two of the words levelled at him by people active in the market. But the veteran head of Vontobel was absolutely spot on with his estimate: in Swiss private banking alone, about a third of all players disappeared in the past five years. The industry now counts some 100 institutes, compared with 140 in 2013.
In 2018, consolidation again was a trend, even if its occurrence was less frequent. A list compiled by EY consultants shows that eight private banks were bought and sold in 2018 (see table below), compared to 10 deals in 2017.
The Last Chapter for Notenstein
The first to move, ironically, was Vontobel, which in May acquired Raiffeisen unit Notenstein La Roche for 700 million Swiss francs ($706 million). With the bank, it also received 16.8 billion francs in assets under management. CEO Staub, not known as a swift acquirer, landed the biggest coup of the year.
The deal also marked the end of a chapter in Swiss banking. Notenstein had been founded in an emergency move after Wegelin & Co. folded during the tax dispute with the U.S. It was intended to provide a wealth management arm to Raiffeisen, Switzerland's third-largest bank. Notenstein in 2015 bought private bank La Roche and several fund businesses. Former Raiffeisen CEO Pierin Vincenz even toyed with the idea of merging with Vontobel.
The plans came crashing down in 2018. With the integration of Notenstein La Roche into Vontobel, some 200 jobs were cut and the name of the bank has disappeared.
And Another Owner Bank Disappears
- Page 1 of 2
- Next >>
