Julius Baer is vulnerable to the pulling power of its star ex-CEO, Boris Collardi. Several other Swiss banks reportedly are too as Pictet ratchets up the pressure.
What Zurich-based Julius Baer implicitly predicted last December – that its former CEO Boris Collardi would make an aggressive push for business as soon as he joined rival Pictet – is coming true.
Collardi is already going after Julius Baer's Latin American business, as finews.com reported last month. The unit is susceptible to having its private bankers picked off: Julius Baer has been roiled by the conviction of a former banker for his involvement in Venezuelan graft and a subsequent review.
But star private banker Collardi is casting the net far wider, according to a report by «Bloomberg». Collardi is also working the phones at Credit Suisse, where he spent the first 13 years of his career, EFG International, HSBC, and Lombard Odier, which is Pictet's hometown rival.
Asia in Focus
The efforts are believed to center on Asia, where Pictet has long languished. Even if the Genevan partner-led bank insists that it is too refined to poach, Collardi will have a hard time resisting: each of the institutes he is targeting are vulnerable in some way.
Credit Suisse's private bank in Asia is growing apace, but some bankers may be unsettled about recent management changes following the sudden exit of long-standing head Francesco di Ferrari three months ago. Would some risk the culture shock from a big global firm to a Swiss consensus-based partnership?
Banks Vulnerable
HSBC is also in the midst of major changes, having only just decided on a major hiring push in Asia. But the British bank is also handing over its private bank from its long-standing head to a newcomer to the private bank in January.
EFG still hasn't conclusively answered its «what next» question following the acquisition of scandal-tarnished Banca della Svizzera Italiana, or BSI. The deal failed to give EFG the desired lift in Asia, and veteran Albert Chiu is back to recruiting organically. Given the choice, private bankers in brand-conscious Asia would likely opt for the prestigious Pictet name over that of EFG's.
Like Pictet, Lombard Odier is small and prestigious in Asia. The bank has been far more aggressive – and successful – than Pictet at clinching local partnerships to canvas the market under Vincent Magnenat. Its relatively small size could leave it vulnerable to poaching if French-Swiss native Collardi comes calling.
Julius Baer Exposed
Julius Baer, the bank which Collardi knows best from orchestrating much of its spectacular growth including by acquisition since 2009 following the death of his predecessor and mentor, Alex Widmer. The Swiss private bank has been busy fighting fires since Collardi left: the Latin American probe has splashed Julius Baer's name onto the front page.
But the bank is also reportedly gathering its influential adviser workforce around a new bonus scheme. The move probably simply brings Julius Baer into line with the wider market, but combined with the wider era of cost-cutting about to break out at the bank, may spark an exit or two of disgruntled bankers.
According to «Bloomberg», Pictet wants to nab as many as several dozen private bankers in Asia in coming years. The talent war in Singapore and Hong Kong can only get hotter.
