Strategy
Standard Chartered To Sell Swiss Private Bank, Not Quitting Switzerland

UK-listed Standard
Chartered is looking to sell its private bank in Switzerland
as part of its plans to reduce several of its non-core businesses
as it sharpens its focus on trade and the creation of wealth
across Asia, Africa and the Middle East.
As part of its strategy unveiled in November, the bank, which
earns the vast majority of its revenues in regions such as Asia,
said it was selling or shutting small peripheral businesses
outside of its core markets as it looked to deploy capital more
effectively.
A spokesperson told this publication that while Standard
Chartered is looking to sell its Swiss private bank, it will
continue to run a commercial bank in Switzerland. Wealthy clients
that use the Swiss operation will be able to use similar private
banking operations in other parts of the world, the spokesperson
said.
"Following a comprehensive review of its private bank booking
centre in Switzerland, Standard Chartered has decided to
discontinue its private bank booking centre in Geneva and
consolidate the advice and servicing of its Swiss booked clients
into London, Jersey, Middle East, Singapore and Hong Kong booking
centres," the bank said.
The move comes amid a global crackdown on tax evasion that is
putting huge pressure on Switzerland's private banking industry.
As a result of weakening bank secrecy laws and heightened
regulation, many players are now looking to consolidate and
streamline their businesses as they seek to cope in the new
business environment.
According to the Association of Foreign Banks in Switzerland,
from the start of 2012 to the end of May 2013, the number of
foreign-owned private banks operating in Switzerland declined
from 145 to 129 due to the roll-back of bank secrecy regulations.
Meanwhile, over the preceding five years, foreign banks' assets
under management fell 25 per cent to SFr870.7 billion ($973.8
billion), due to their clients paying taxes or withdrawing
money.
Overhaul
The news comes after Standard Chartered Private Bank named a new
group head of private banking based in Hong Kong earlier this
week. Effective 17 February, Michael Benz joins the company from
Julius Baer, where he was the designated chairman for Asia.
In January, Standard Chartered said it was reorganising its
business and making changes to the bank’s board, in an effort to
deliver better financial results. The changes were first
announced at an investor day in November 2013.
From 1 April 2014, the group’s wholesale banking and consumer
banking businesses are to be integrated and run by Mike Rees, who
will be appointed deputy group chief executive simultaneously. He
joined the group in 1990, was appointed to the board as group
executive director in August 2009 and has been CEO of wholesale
banking since 2002.
Rees will continue to report to group chief executive Peter
Sands, as he heads up the new business. This will be divided into
three new customer segment groups; corporate and institutional
clients, commercial and private banking clients, and retail
customers, as well as five global product groups including
financial markets, corporate finance, transaction banking, wealth
products and retail products.