Bank Vontobel has agreed to assume a group of Eastern European clients of a rival private bank. The transaction, which had featured in a previous story by finews.com, will strengthen the business of the private bank in the region.
Zurich-based Vontobel assumes the portfolio from rival Notenstein La Roche, the private-banking unit of Raiffeisen Switzerland. The majority of the team in charge of the management of the clients will also move to Vontobel, the two companies said in a statement today.
finews.com had reported exclusively about the impending transaction at the end of July. The clients are mostly so-called high net worth individuals and together have assets worth 2 billion Swiss francs. The assets are registered in Switzerland.
Focus on Fewer Markets
Notenstein La Roche said that it will focus on Switzerland and a few international markets. The bank will invest in its business where it sees the best conditions for working profitably.
For Vontobel, the portfolio is helping it grow organically in a region, where it already is strongly represented. The two banks didn’t say how much Vontobel paid for the portfolio. Vontobel added that the acquisition won’t affect its equity base. The companies expect the closure of the transaction to take place in the coming weeks.
Assets Under Management Drop
After the sale of the portfolio, Notenstein La Roche will have assets under management worth a little more than 17 billion francs. The company last week reported a first-half profit of 25 million francs and assets under management of 19.4 billion.
