Credit Suisse is pulling out of the Austrian onshore wealth market. The retreat follows a similar recent move by UBS.
Zurich-based Credit Suisse reached an agreement with Liechtensteinische Landesbank in Austria, where the latter bank can take on as much as 1 billion euros ($1.19 billion) in assets from the Swiss wealth manager, the two said in emailed statements on Wednesday.
Credit Suisse is splitting its book in Austria, where it is present in Vienna and Salzburg, in two: high-net worth clients will be referred to LLB, while super-rich Austrian clients will be booked out of Credit Suisse's Luxembourg arm. This move echoes UBS' exit from Austria in December, when it sold to LGT.
Referral Pact
Credit Suisse didn't disclose financial or personnel details of the retreat. The Swiss bank begins a transition phase to transfer its wealthiest clients in Austria over to Luxembourg in the second quarter. LLB, in its statement, said the deal had been structured as a referral-based agreement.
«The choice to phase out our onshore presence in Austria is driven by a strategic decision to focus even more on business with ultra-high net worth and corporate clients in our European wealth management business, given the significant growth potential,» said Robert Cielen, Credit Suisse's top European private banker.
