In November 2007 the Cantonal Bank of St Gallen Group announced the reinforcement of the positioning of its subsidiary HYPOSWISS Private Bank as an independent unit within the group. Then, in December, SGKB announced the acquisition of Anglo Irish Bank (Suisse) together with its onshore Portuguese branch. The acquired unit will operate as an independent subsidiary under the name HYPOSWISS Private Bank. SGKB has some SFr40 billion ($36.7 billion) in assets under management including the assets managed by the Zurich branch of HYPOSWISS Private Bank. This office has significant experience in traditional asset management with an emphasis on Eastern Europe. Anglo Irish Bank (Suisse) has some SFr3 billion AuM with an expertise in alternative investments. SGKB has market share in Eastern Switzerland and into Eastern Europe, Anglo Irish Bank has (Suisse) developed markets in Western Europe and Latin America. So is the deal as good a fit as it sounds? Declan McAdams, general manager of Anglo Irish Bank (Suisse) certainly thinks so. He’s staying with the Geneva unit and not returning to his soon-to-be-former employer. “We were determined to be a part of the process,” he told WealthBriefing. “We were choosing a new partner.” Anglo Irish Bank Group in Dublin appointed a new chief executive a couple of years ago and he decided to re-focus on the core businesses of the group – commercial lending. The Swiss unit was therefore up for sale. This was announced to staff in September 2007 and the deal signed in December – something of a record. “SGKB is ideal as a partner for us,” says Mr McAdams. “They have a clear focus on private banking and have an AA rating. We are active in complimentary markets and the deal allows us to retain our current structure and in addition now gives us a Swiss brand. Nothing will change here except for the name on the door.” The speed of the transaction’s closing and the complimentary nature of the institutions means that there are no staff members waiting to discover who of two gets the one job available, removing uncertainty for staff. Anglo Irish Bank clients gain access to the resources of SGKB and HYPOSWISS have access to the alternative investment expertise of their new unit. “HYPOSWISS Private Bank understand boutique Private Banking and they believe in the future of the concept. Large banks have their place but there will always be both clients and bankers who prefer the intimacy and tailor made approach of the boutiques.” The strategy will remain the same – to provide best of breed products to clients with an absolute return focus. “Our destiny remains in our hands,” says Mr Mc Adams. Most mergers are justified on the basis of economies of scale and the savings of larger institutions. Most mergers are demonstrated to destroy a lot of value after the event. Will this complimentary approach prove more successful? Only time will tell, but the approach is certainly refreshing – and so far the clients seem happy.