Swiss cooperate bank Raiffeisen said yesterday that it plans to further develop its links with Vontobel, the Swiss private bank. The two ban...

Swiss cooperate bank Raiffeisen said yesterday that it plans to further develop its links with Vontobel, the Swiss private bank. The two banks signed a cooperation agreement last June. Yesterday, Raiffeisen announced record profits of SFr506 million ($528 million) for 2004. In March Vontobel said with the release of its 2004 results that the alliance with Raiffeisen was reaping considerable reward. Vontobel said in its results statement: “Measures implemented by the group in 2004 include the creation of a team to provide support to Raiffeisen relationship managers in the investment business. The Vontobel Group already began to reap the benefits of these investments during 2004 in the form of increased volumes in investment funds and structured products.” Could Raiffeisen be looking for a more formal link with Vontobel, particularly after these very strong results? Vontobel, which is struggling to grow its private banking business against the downturn in Swiss offshore banking, could be wise to strengthen the link.