SG Private Banking sees slowdown in net new money flows
The rate at which SG Private Banking attracted new money last year slowed considerably, according to the bank's annual report, but the division was nevertheless the star performer in the French bank's asset management business.
SG Private Banking said net new money grew by €4.5bn last year, equivalent to 6% of assets, down from the €8.8bn achieved in 2007. Total assets under management fell by 13% in the year to end 2008 at €66.9bn. Nevertheless, revenues rose by 2% last year to €839m, as the bank kept a tight control on costs.
Net income for private banking of €213m, down €2m on last year, meant the division was for the first time the biggest contributor to profits in SG's global investment management and services group. The bank's asset management business reported a loss of €258m, while the securities services, brokers and online services division delivered €149m of net income. SG is planning to merge its asset management activities with those of Credit Agricole, with the latter taking a 70% share of the new business.
In an interview published last month in Wealth Bulletin's print edition (see related content), Daniel Truchi, chief executive of the private bank, said he was keen to make a big acquisition this year to accelerate growth.
The Paris-based bank last year bought a stake in the multi-family office Rockefeller & Co. The bank also expanded its regional presence in its home market, opening, or planning to open, offices in Marseille, Lyon, Lille, Strasbourg and Rennes.
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