Strategy
J Safra Sarasin Group Shutters German Private Bank, Creates Luxembourg Entity Instead
The firm's private bank operation in Germany is to be closed.
The J
Safra Sarasin Group yesterday said it will shut its private
banking unit for the German market because it has not achieved
critical mass in business, accounting for less than 1 per cent of
the group’s SFr148.5 billion ($146.8 billion) assets under
management as reported last week.
The decision to shutter Bank J Safra Sarasin (Deutschland) will
have “no impact and does not affect the institutional and
wholesale business in Germany, to which the J Safra Sarasin Group
remains fully committed”.
The group said it will “optimise its presence in Germany" with
regard to its institutional and wholesale business with the
establishment of a branch of Banque J Safra Sarasin
(Luxembourg) to operate its ICWS business under the "European
Passport", enabling clients to use the J Safra Sarasin Group’s
services.
Last week, the lender said group net profit increased by 9.4 per
cent year-on-year to SFr252.1 million for 2016. Assets under
management increased to SFr148.5 billion from SFr144 billion. The
cost/income ratio held steady at 60 per cent.
Germany's private banking and wealth management market was scrutinised by this publication in a feature here.
