All articles by Ilya Timofeyev
Ilya Timofeyev
LGT’s 1H results mixed, business growth slows
Liechtenstein-headquartered wealth and asset manager LGT Group said it remains cautious on the development of business over the rest of the year after witnessing an 18% year-on-year profit decline. For the first six months ending 30 June 2011, LGTs profits stood at CHF82.1m ($100m), compared with CHF99.6m for the corresponding period a year before. The wealth manager said the decline was influenced by volatility in financial markets, dropping client activity and the strong Swiss franc.
UK withholding tax to be twice German level
The UK has signed a landmark tax agreement with Switzerland that could tax British high net worth clients (HNW) at more than twice the rate of German HNWs from 2013 but allows special rules to be applied to non-UK domiciled individuals. The UKSwiss agreement contains many of the same provisions as the SwissGerman deal signed two weeks ago and is speculated to net the UK government £5bn ($8.2bn) in new taxes. Retrospective taxation: UK residents can either make an anonymous lump-sum tax payment, varying between 19% and 34%, of their Swiss-based assets or disclose their banking relationship in Switzerland to the UK authorities.
Swiss foreign assets at lowest level since 2009
According to the Swiss National Bank (SNB) latest statistical data, international private clients deposits in Swiss banks declined by 2.8% to CHF2,254bn ($2,856bn) in the first six months of 2011, from CHF2,319bn in December 2010. Private client deposits are closing in on August 2009 levels and have been in steady decline since their peak in October 2007, despite a resurgence in the past 12 months.
UBS to cut 1000 wealth jobs, Asia safe
Staff cuts at UBSs wealth management division will predominantly affect its back office, IT and front office departments, Mediobanca analyst Christopher Wheeler predicted UBS wealth management division could be reduced by as much as 1,000 staff globally as the Swiss banking giant cuts 3,500 jobs to save CHF450m ($570.5m) in the second half of 2011. The cuts are in line with many of its global competitors, including Barclays and Bank of America, and come as it battles rising cost pressures driven by the strong Swiss franc.
Canaccord emerges as second bidder for Evolution
Evolution Group, whose UK-based wealth manager Williams de Broe bought a regional private investment management business of BNP Paribas Wealth Management earlier this month, has revealed a second bidder for its entire operation. Canadas Canaccord Financial has expressed interest in acquiring Evolution.Canaccords move comes after South-Africas investment firm Investec commenced talks with Evolution on 4 August.
Subscribe to our Newsletter
Get industry leading news, data and analysis delivered to your inbox
Julius Baer starts $100m China Fund
Julius Baer has launched its $100m China Fund giving its private banking clients direct access to the countrys A-share market and the ability to capitalise on its 12th five-year plan Julius Baer was granted a $100m quota in May under its existing Qualified Foreign Institutional Investor (QFII) licence by the State Administration of Foreign Exchange (SAFE).
ABN AMRO sells Swiss PB unit to UBP
Netherlands-headquartered ABN AMRO Bank has sold its Swiss private banking business to Union Bancaire Prive (UBP) in a bid to focus on a growth in Asian markets. In July, PBI speculated on ABN AMROs sale and reported that Vontobel was among potential buyers of the Swiss subsidiary It was thought, at the time, that the price tag for ABNs Swiss unit would be between CHF100m ($128m) and CHF150m.
Clariden starts efficiency drive after 1H drops
Clariden Leu is to implement an efficiency drive to tackle rising operating costs as it became the latest victim of Swiss currency fluctuations battling declining net profits and assets under management. The Swiss bank reported net profit of CHF155m ($197m), down 26%, compared with CHF209m in the second half of 2010. Clariden saw its assets under management (AuM) decline 4% in the first six months of 2011 to CHF94bn, from CHF96bn as at 31 December 2010.
HSBC halts offshore service to US citizens, regulators flex muscles
HSBC Private Bank has stopped offering wealth management services to US residents from offices outside the US.
Switzerland and Germany sign landmark tax deal
Switzerland has signed a landmark tax agreement with Germany that has gone a long way to matching the demands of the Swiss private banking industry including giving it mutual access to Germanys financial markets. The agreement gives German residents the chance to declare any untaxed assets in Switzerland via an anonymous one-off lump retrospective tax payment or by disclosing their accounts. Speaking to PBI last month, Yves Mirabaud, managing partner and a member of the executive committee at Mirabaud and former chairman of the Geneva Private Bankers Association, said Swiss authorities had four objectives as part of its discussions with German regulators.