Several weeks into his new job running Credit Suisse's $409 billion private bank, Philipp Wehle is signaling growth ambitions. The ex-consultant is sanguine about political risk in some of the countries the Swiss bank will target.
Some of Credit Suisse's biggest wealth markets are marked by political turbulence, but Philipp Wehle isn't overly concerned, he told Swiss weekly «Handelszeitung» (behind paywall, in German). The comments come three weeks after the German native and ex-consultant was parachuted into the top wealth job when star banker Iqbal Khan left suddenly.
«That's generally true for some market areas of our division,» Wehle is quoted as responding when asked about political risk in Saudi Arabia, where Credit Suisse quietly clinched a banking license three months ago. «There are also risks in Latin Amerca or Russia, which we approach with the appropriate risk and compliance measures.»
CEO Tidjane Thiam has walked a tightrope since the murder last year of journalist and Saudi regime critic Jamal Khashoggi. Credit Suisse's major shareholder, the Olayan Group, is based in Riyadh.
Kingdom as Key Market
The kingdom is a key market for both Switzerland's big banks, and the Swiss government has even thrown its support behind efforts to do business in Saudi Arabia. A United Nations special rapporteur said it found sufficient evidence to believe Saudi Crown Prince Mohammed bin Salman was linked to Khashoggi's death.
Brazil, Subsaharan Africa, and central Asia, which Wehle also listed as growth markets, are also politically dicey markets rife with corruption risk. Former Credit Suisse boss Brady Dougan was spooked by the potential risk for the Swiss bank that he pulled Credit Suisse out of several African countries during his tenure.
Helping Locals Diversify
Wehle underscored the Middle East as an especially attractive market for the bank: «This is an absolute key market for us with very wealthy entrepreneurs and families who have earned their money locally. We help them to diversify their assets globally,» he said.
«As a local partner on the ground with global reach, we can add value for our clients. We've done that well in the last few years and I see a lot of potential because the segment of ultra-wealthy Middle Eastern clients is growing between 6 and 7 percent annually,» Wehle said.
Unknown Quantity
His first trip as Khan's successor at the helm of the unit, which manages 404.5 billion Swiss francs ($409 billion) on behalf of wealthy clients, is far less exotic: Wehle headed for London, which continues to be a key hub for Credit Suisse's wealth arm despite British efforts to untangle itself from the European Union.
The appointment of Wehle, a 45-year-old former officer of the Germany army who was Khan's finance chief for the last four years, was a surprise to most observers. Wehle is not well-known outside of Credit Suisse. He wasn't among a list of seven potential successors touted by «Reuters» in March when speculation over Khan's next move was rampant.
Targets Hit
Despite rising from relative obscurity in stature and role, Wehle voiced confidence: «I wasn't surprised to be one of the candidates. As head of finance, I know this division very well and have as part of its top management have helped to make it into a leading provider of private banking in the last three and a half years.»
The private banking unit was the only Credit Suisse business to hit targets in Thiam's grueling three-year revamp of the bank. Stripping out costs from asset management disposals and restructuring, Khan – and Wehle – beat Thiam's benchmark goal by 10 million francs.
