HSBC plans to sell parts of its Swiss private bank, according to Bloomberg, quoting four unnamed sources. The bank declined to comment on the story when contacted by WealthBriefing on the matter.

HSBC plans to sell parts of its Swiss private bank, according to Bloomberg, quoting four unnamed sources. The bank declined to comment on the story when contacted by WealthBriefing on the matter.

The news-wire report said that the bank had put up around $15 billion in assets under management, mainly from its Geneva-based business,  and that documents for the business, which includes wealthy clients in France, have been sent to potential buyers and it may be sold in parts, though no sale is guaranteed.
The UK/Hong Kong-listed banking group chief executive Stuart Gulliver told investors in May last year that while the bank doesn’t plan to sell the Swiss private-banking business, it will “reshape certain parts of it” to focus more on emerging markets.

A spokesperson for HSBC Private Bank (Suisse) said the firm was highly committed to Switzerland as a market and as a leading booking centre. “Switzerland is a priority market for our group and that won’t change,” the spokesperson said.

Last December, the bank signed up to globally implement a private client platform provided by Avaloq; the Swiss part of the bank will be the first to implement it, the spokesperson said, adding that it is building a new corporate HQ in Geneva and this should be completed later in 2014. “These two investments, in Switzerland alone, are worth more than $200 million,” the spokesperson said.

Some of the speculation about the bank’s future may have been triggered by a degree of M&A affecting Swiss institutions in recent months. For example, Credit Suisse has bought part of the non-US wealth management business of Morgan Stanley; Julius Baer has bought the non-US wealth arm of Bank of America Merrill Lynch, while Lloyds Banking Group has sold an international private banking arm to Union Bancaire Privee. Generali, the Italian insurer, has put Lugano-headquartered BSI up for sale, reportedly. There are more than 300 banks in Switzerland – a number that has fallen from around 375 around 2000, according to the Swiss Bankers Association.

(Editor's comment: In my recent conversations with the Swiss banking industry, it has become clear that while some of the bigger banks are recovering, and some niche players are doing well, margins for some firms are thin, or even negative. HSBC, like some of its peers, has seen Swiss banking come under aggressive global pressure from governments trying to hunt down alleged tax dodgers using Swiss accounts. With costs rising and the days of easy revenues moving into history, it might make some sense for the bank to consider its options. But to invest $200 million on private banking operations in the country seems a big statement of positive intent by HSBC.)