Credit Suisse announced today that it plans to merge its various private banking businesses to form a new bank called Clariden Leu. The ...

Credit Suisse announced today that it plans to merge its various private banking businesses to form a new bank called Clariden Leu. The Zurich-based bank said Clariden Bank, BGP Banca di Gestione Patrimoniale, Bank Hofmann and Bank Leu plus the securities dealer Credit Suisse Fides will be merged to form a single autonomous bank. Clariden Leu, which will come into existence at the beginning of next year, will be headed by F. Bernard Stalder, currently chief executive of Clariden Bank. Walter Berchtold, chief executive of private banking at Credit Suisse, will become the new chairman. Credit Suisse said in a statement that: “Clariden Leu will focus on wealthy clients and position itself as a leading international private bank firmly rooted in Switzerland.” The move comes as a surprise as many analysts believed Credit Suisse would continue to guard the independence of its private banks, as various statements from the bank have indicated previously. “This shows Credit Suisse’s ‘one bank’ policy is being applied universally,” a Swiss banking analyst told WealthBriefing. “But the bank was also obviously influenced by similar moves by UBS in this respect.” Last year UBS sold its various private banking subsidiaries and GAM to Julius Baer. The bank added that the merger is expected to generate synergies resulting in additional net income of around SFr 100 million ($78.7 million) per annum from 2008. As at December 31, 2005, the five units had a headcount of about 1,800. Assets under management were around SFr112 billion and pro-forma net profit came to about SFr443 million. Credit Suisse said Clariden Leu's head office will be located at the present Bank Leu headquarters at Bahnhofstrasse 32 in Zurich. The merged bank will have branches in five cities in Switzerland and in more than 17 locations outside of the country.