The merger of Zurich-based Clariden Leu through the combination of four Credit Suisse bank subsidiaries, Clariden Bank, Bank Leu, Bank Hofma...

The merger of Zurich-based Clariden Leu through the combination of four Credit Suisse bank subsidiaries, Clariden Bank, Bank Leu, Bank Hofmann and BGP Banca di Gestione Patrimoniale and Credit Suisse Fides, a securities firm has now formally completed. In an interview with Facts magazine, Hans Nutzi, head of private banking at the merged group said the bank will consider acquisitions in Switzerland and Germany of SFr500 million or more if they meet its strategic, price and cultural criteria. The group saw a 20 per cent growth in net revenues and a annualised gross margin of 136 basis points – high for the industry - in the first nine months of last year. Restructuring costs are estimated at SFr100 million in 2006-2007, which will equate roughly to the expected synergy benefits. During the first nine months of last year, Clariden Leu brought in SFr6 billion of new money, up 7 per cent from the same period in 2007. Client assets under management are now SFr121 billion, and Mr Nutzi hopes to increase new money inflows by 4 per cent or 5 per cent. Of the total AUMs, SFr65 billion, or 54 per cent is from Europe, the Middle East and Africa, SFr26 billion from the Americas, SFr23 billion from Switzerland and SFr7 billion from the Asia-Pacific region, according to the report. The newly merged bank, which has 351 relationship managers, aims to generate a net profit of SFr650 million next year and more in 2008, when the merger's synergies feed through. Thereafter, it is targeting growth of 15 per cent a year. Walter Berchtold, chairman of the board of directors of Clariden Leu said: "The Clariden Leu merger was completed from a position of strength. All five units were already excellently positioned in the market and successful. They complement one another both in terms of their product ranges and their regional presence. Following the merger, Clariden Leu is very well placed to further expand its strong position as a pure private bank in national and international asset management." On 31 March, the banks Leu, Hofmann, and BGP will be consolidated on Credit Suisse's current IT platform. The international IT merger, which will mainly affect the Singapore and Nassau offices, will be phased in gradually through the end of June 2007. With the migration of Clariden and Credit Suisse Fides to the uniform IT platform at the end of September 2007, the technical merger of Clariden will be complete. In addition to the technical migration, the offices in Switzerland and abroad will be consolidated. By the end of third quarter 2007, the existing 15 locations in Zurich will be consolidated, leaving Clariden Leu five offices in the city.