Goldman Sachs Group is setting up an office in Monaco as part of a strategy to expand its European operations to tap the evolving high-net-worth market, reported Bloomberg.
The New-York based bank is re-entering Monaco after shutting down its office six years ago.
Goldman’s private wealth management division obtained approval from Monaco’s regulators to open a wealth unit last month.
The bank also hired Arnaud Caussin and Thibaut Lambert from Barclays and wealth adviser Serge Olive from the British bank to run its new office.
Goldman Sachs EMEA co-head of private-wealth management Chris French said: “The opening of our presence in Monaco is critical to delivering on our regionalisation strategy and overall growth plan. Monaco represents a significant jurisdiction for our Private Wealth business in Europe.”
Monaco typically does not collect taxes on income or capital gains and about a third of its 39,000 residents are said to be millionaires.
Russian tycoon Dmitry Rybolovlev and British chemical firm Ineos founder Jim Ratcliffe are some of the wealthiest residents of the city-state.
Besides Goldman Sachs, a number of global banks, including Citi and UBS, maintain a presence in Monaco.
In February 2020, Swiss private bank Pictet opened a banking branch in Monaco in response to rising demand from the region’s private clients.
In 2019, a former Julius Baer banker Ali Jamal launched a new wealth management business in Monaco to tend to billionaires in the region.
Meanwhile, Goldman Sachs reported a nearly 13% drop in Q4 2021 profit as operating expenses significantly increased amid weak trading activity.
The bank’s net earnings totalled $3.94bn in the three-month period to 31 December 2021, compared to $4.36bn recorded in the same quarter a year ago.
Diluted earnings per common share (EPS) for Q4 2021 was $10.81, down from $12.08 in the fourth quarter of 2020.