The Private Banks That Disappeared in 2018

The Private Banks That Disappeared in 2018

Another private bank that disappeared in 2018 was Mourgue d'Algue, the story of which dates back to 1869. The firm merged with Geneva rival Gonet in July. Though presented as a merger among equals, in truth it was the Gonet bankers that received the top jobs at the new Gonet, a bank with 150 staff and 5 billion francs in assets under management.

A similar pattern emerged in the November merger of Banque Héritage and Sallfort Privatbank. A merger of equals it was called but the firm will carry the name of Banque Héritage and Heritage people occupy the leading positions. The new bank has 6 billion francs in assets under management.

Investors From Bahrain and Superrich Entrepreneurs

The founders of Banque Pâris Bertrand Sturdza retained their position. In September, they bought their shares back from Eric Sturzda Group and changed the name of the bank to Banque Pâris Bertrand. They also got a new minority shareholder in Bahrain's Bank Investcorp.

Michael Pieper and Adrian Keller also did a buyout together with Andreas Jacobs. The three investors together acquired the Swiss business of the world's second-oldest bank, Hamburg's Bank Berenberg. The new Bergos Berenberg will focus on rich entrepreneurs in Switzerland and Germany.

More Deals to Follow

In two transactions, banks simply bought and sold client assets. Schroder & Co. Bank in July sold the Eastern European private banking business to Bank CBH Compagnie Bancaire Helvétique in Geneva. And in October, Vontobel made another acquisition: the Zurich bankers bought the U.S. client book of Lombard Odier to become the second-largest Swiss-based provider of offshore banking for U.S. clients after UBS.

With increased volatility on the markets in recent months, clients have removed their assets and banks will feel the squeeze both from lower fees as well as new money. As volume growth in private banking is linked to the bull market to a significant degree, growth is likely to become a major concern for the industry. As such, it is very likely that more merger and acquisition activity will follow in 2019.