Swiss banks hold up in tough market
Swiss banks have had an interesting history in Russia since the collapse of the Soviet Union. It was bankers from Credit Suisse and the then Swiss Banking Corporation that led the charge into Russia in the early 1990s.
The top ranks of investment bankers in Russia are full of former Credit Suisse staff. Renaissance Capital chief executive Stephen Jennings was among the first Credit Suisse bankers sent to build the bank’s business in the country.
UBS was one of the first banks to identify the need to build a local brokerage operation.
Despite this distinguished history, both banks lost ground in recent years. When Russian bank Alfa Bank targeted UBS staff in 2007, UBS refused to enter a hiring war and brought in managers from other parts of its business.
The crisis in the Russian market has highlighted the wisdom of this strategy as banks that spent millions building teams face the task of making their investments pay. In these conditions, Credit Suisse and UBS are emerging as likely winners.
Steve Meehan, head of UBS in Russia, said: “We are top five across all categories. Considering the market environment in capital markets we have had a good year.”
UBS employs about 260 staff in Russia and unlike many rivals, in particular local investment banks, it has no plans to cut staff.
Meehan said: “Our headcount will be net up over the next few months.”
Fawzi Kyriakos-Saad, chief executive of Russia, the CIS and Turkey at Credit Suisse, said: “We continue to grow our business organically and will continue to selectively strengthen our coverage footprint, in a disciplined manner, if the right talent becomes available.”
Credit Suisse has also continued to transfer staff to Russia, including Ian Dalglish as head of securities, Charles White-Thomson as head of equities and Steve Hellman as head of investment banking coverage.
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