Credit Suisse is to sell Clariden Leu’s UK operations to Falcon Private Bank less than a year after fully integrating the subsidiary’s parent back into Credit Suisse Group.
The sale is the latest example of the Swiss bank’s push to save CHF200m ($218m) annually and increase the private bank’s contribution to the group’s pre-tax income by CHF800m by 2014.
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It is also rumoured Credit Suisse could merge its asset management unit with its private and investment banking divisions to cut costs.
London-based Clariden Leu (Europe), a wholly owned subsidiary of Credit Suisse, offers wealth and asset management services to private clients in Eastern Europe, Middle East and Africa and other emerging markets.
CHF2bn AUM
Clariden Leu (formerly Clariden Leu Asset Management UK) has assets under management (AuM) of more than CHF2bn to 31 August, 2012, with 57 employees, including 22 relationship managers and 1o investment professionals.
The purchase price for the transaction, which is subject to regulatory approval, has not
been disclosed.
Falcon Private Bank is a Zurich-based wealth management boutique with CHF11.3bn AUM to 31 December 2011.
Clariden integration "proactive step"
Credit Suisse fully integrated Clariden Leu private bank back into its group in November 2011 to aid its cost reduction efforts.
During a presentation at Barclays Global Financial Services Conference in September this year, Credit Suisse’s chief financial officer David Mathers said that Clariden Leu’s integration was a "proactive step to enhance profitability amongst secular trends", with an annual pre-tax income improvement of CHF125m targeted.
Credit Suisse hits cost reduction target
Mathers also confirmed Credit Suisse will hit its target of CHF200m in expense reduction in its private banking division by the end of 2012.
The Swiss bank’s internal scheme of cost cutting will also involve staff cuts, with a planned 3% reduction over two years representing about 3,500 staff across the group.
Specialising in asset management for high net worth private clients and families, Falcon Private Bank is owned by Aabar Investments, a global investment company almost wholly owned by the Government of Abu Dhabi.
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