All articles by Ilya Timofeyev
Ilya Timofeyev
UBS expands further in the UK
Swiss banking group UBSs expansion into the UK wealth management market continues with the appointment of Martyn Begbour The bank said Begbour will join on 31 October and head a newly-created desk covering the South and South-West, initially based in London. UBS also said it is creating a team to service the South and South-West, an important geographic market.
Lombard Odier opens ‘strategic hub’ in UAE
Geneva-based Lombard Odier (Lombard) has rolled out private banking operations in Dubai in a bid to create a hub for new market clients from the Middle East, Africa, Eastern Europe and Central Asia. According to Lombard limited partner and head of new markets Arnaud Leclercq, the current economic climate presents bank with a number of opportunities. Currently based in Geneva, Leclercq will relocate to Dubai and several key hires will follow in the coming months, the bank said.
Third of western European banks have outflows
One in three Western European private banking players had net asset outflows in 2010 with 10% of them posting losses, a new study has revealed. McKinsey & Companys annual European Private Banking Survey 2011 found that overall European private banks increased their assets under management (AuM) last year by 9% but the outlook for 2011 looks tough. However, net inflows grew only 2% in 2010, compared to a 7-8% growth in 2005-2007.
Deutsche abandons its 2011 pre-tax target
Deutsche Bank has downgraded its pre-tax income target for its asset and wealth management (A&WM) business as part of banks group-wide profit warning. The banks asset and wealth division targeted pre-tax income of 1bn ($1.3bn) for 2011, but achieved only 0.4bn for the first six months of the year.
UBS sends mixed Q3 message
Hit by the recent rogue trading scandal, Swiss banking giant UBS expects a modest group net profit and net new money (NNM) inflows in its wealth business for the third quarter of 2011. The group net profit includes approximately CHF400m ($435m) of restructuring charges associated with the banks cost-reduction programme, and a $2.3bn loss from unauthorised trading at its London-based investment arm in September. UBS said it expects NNM inflows broadly similar to the second quarter in its wealth management businesses, and to make an approximate CHF700m profit from the sale of treasury-related investments at Wealth Management & Swiss Bank.
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ABN AMRO buys 7-office LGT German unit
ABN AMROs German private banking subsidiary Delbrck Bethmann Maffei has bought LGT Bank Deutschland for an undisclosed amount. LGT put its 7-office German private banking business up for sale in May following its failed bid to buy BHF Bank. LGT Group and ABN AMRO also signed a co-operation agreement in the area of products, allowing clients of Delbrck access to the investment capabilities and opportunities offered by LGT.
London’s retains wealth top spot, Asia rising
London, Geneva and New York remained the top three global private banking and wealth management centres respectively for a third consecutive time, according to the latest biannual Global Financial Centres Index (GFCI). Hong Kong, which in March occupied fourth place, slipped down to the fifth position, giving way to Toronto while Zurich and Singapore achieved sixth and seventh places respectively. Research from PwC and PBI, however, suggests the dominance of old world financial centres such as London and New York may not last long as the global wealth management centre of gravity shifts eastwards.
Swiss and Russia DTA to allow tax info exchange
Switzerland and Russia have signed a revised double taxation agreement (DTA) that formalises the exchange of tax information and taxes on income and capital. The Swiss and Russian governments agreed to introduce the zero rate for interest payments and eliminate the residual tax on dividend payments to pension funds and the central banks of both countries.
Emerging markets underperform long term: CapGen
Returns from emerging markets equities (EMEs) fail to outperform developed markets equities, a study into long-term trends has found.The Truth about Investing in Emerging Markets found that EME portfolios with 3-year and 5-year time horizons did not consistently outperform developed market equities either on a total return or a risk-adjusted basis.
BofA’s Project New BAC a high-risk strategy – S&P analyst
A US banks analyst predicts Bank of America Merrill Lynchs (BofA) radical restructure, Project New BAC, could lead to the banks US-based wealth management business being dissolved into the rest of its consumer business. According to US banks analyst Erik Oja at S&Ps Equity Research, the implementation of phase II of Project New BAC, could result in BofAs US-based wealth management entity becoming increasingly integrated.