Credit Suisse wins biggest private bank inflows
Credit Suisse and EFG International have emerged as the biggest winners from the money pouring into private banks this year.
Credit Suisse saw the largest increase in net money flows of listed banks that reported in the first half and disclosed relevant data. It attracted Sfr28.5bn (€17.6bn) in the first six months.
EFG, backed by the wealthy Latsis family, saw the biggest increase in percentage terms in the rate it picked up assets. It had net new assets of Sfr13.5bn in the first half of 2008, against Sfr6.4bn in the same period in 2007.
Stripping out money acquired through acquisitions, EFG International, based in Zurich, produced an increase of more than 80% year-on-year. This is a bigger percentage increase than any other bank in the survey. Total assets under management at EFG International at the end of the first half exceeded Sfr100bn for the first time, and new deals are expected.
This year, EFG chairman Jean Pierre Cuoni told Financial News: “We certainly don’t see acquisitions as difficult in the current environment, despite what many say. Our strategy is to acquire Sfr10bn to Sfr15bn of client assets in a year – that remains the same.”
The biggest fall was at UBS, which notched up an outflow of Sfr11.4bn, including the US, in the first six months of 2008, compared with an inflow of Sfr80bn in the same period in 2007. Outflows were also registered at Merrill Lynch’s worldwide wealth operation and Liechtenstein-based VP Bank.
Sebastian Dovey, managing partner at wealth consultant Scorpio Partnership, said: “The outflow at UBS should be seen in context of the bank’s overall assets under management for its global wealth unit, which total around Sfr1 trillion, far more than any other wealth manager. The negative net new money declared by UBS last quarter received a great deal of press attention, yet it only represents 1% of total assets.”
He added: “Four quarters before, the bank hauled in almost $40bn(€27.2bn) in a quarter and no one remarked at all. Clearly some perspective is needed.”
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