HSBC Private Bank in Monaco sees Huge New Money Flow in 2005

Contributing Editor

8 February 2006

HSBC Private Bank in Monaco received a record amount of net new money in 2005, according to the bank’s chief executive in the principality, Gerard Cohen. The inflow along with growth in deposits now makes HSBC the biggest bank in Monaco in terms of assets. The bank has squeezed out competition from local and international players such as Credit Foncier de Monaco, Compagnie Monegasque de Banque, BNP Paribas and UBS. “2005 was the best year ever for us – we became the largest bank in Monaco in terms of assets,” Mr Cohen told WealthBriefing. The bank now has around 15 per cent of market share in Monaco and a much larger share of the total private banking market. Total assets under management now amount to around $10 billion at the private bank in Monaco. Mr Cohen, a Swiss citizen who came to Monaco in 1988 to work for the Republic Bank of New York, said clients come from a host of countries. But he said Russian money, despite the huge inflow of rich Russians into the South of France, was not a source of the increase. “Russian money in the region stays in the South of France and isn't a significant factor in the Monaco banking sector.” Despite being the biggest bank in Monaco and one of the most successful asset gathering parts of the whole HSBC Private Banking empire, the local bank only employs 165 staff. Mr Cohen wants to increase that number by 10 in 2006 and bring the total up to 200 in 2007. "Getting staff is always difficult in Monaco - we expect a very high standard and often have to recruit from London, Luxembourg and Switzerland,” he said. Mr Cohen is a well known figure in Monaco and confesses to going out at least five times a week in the evening, which often involves clients. But he puts down the success of the local operations to team work. “This has been crucial to where we are today.” HSBC’s success in the principality has also been as a result of the excellent legacy of the Republic Bank of New York, which had a significant local presence before being acquired by HSBC in 1999.