Banque Heritage last year surprised with the acquisition of Banque Hottinger. The takeover has now prompted the bank to take another step – in a more surprising direction.

Banque Heritage seems to have acquired a taste for local banking. The Geneva-based asset manager is expanding its local presence outside the traditional centers of Zurich and Geneva, the company announced in a statement today.

The bank, with 6 billion francs in assets under management and branches in Zurich, Guernsey and Montevideo, is planning a step that may come as a surprise. It has decided to open a branch in Sion, the capital of the canton of Valais (home to Zermatt and Verbier).

A region not exactly known as a hotbed of Swiss private-banking activityn, but yet Heritage plans to serve local and international clients at its new branch.

Geographic Expansion Strategy

And if opening a branch in an Alpine valley wasn't enough: Heritage has agreed to buy GP Gestion Privée, a local wealth manager. The integration of the team acquired from GP will help Heritage cover its new regional market, the company said.

«The recent acquisition of selected portfolio assets from Banque Hottinger, notably its presence in the Valais, has allowed the Bank to reinforce its presence in certain nearby geographical regions,» Heritage said in the statement.

Chairman With Background in Valais

 The Sion branch's opening is a natural part of this plan, the bank said.

Banque Heritage Chairman F. Bernard Stalder is originally from the Valais and used to chair the local cantonal bank. He is perhaps better known as the former CEO at Clariden, and later Clariden Leu.

On a Roll

The most important reason behind the acquisition and branch opening presumably are the substantial Valais-based assets Heritage acquired through the takeover of Hottinger last year. Those assets will now be used as a stepping stone for further growth.

Heritage is evidently also a private bank that considers itself as an participant in the consolidation of Swiss private banking: in January it had agreed to buy a majority stake in Meridian Wealth Management, based in Lausanne.