Swiss wealth management firm strengthening Asia operations
(20 September 2016 – Asia) Swiss wealth management firm, Julius Baer Group said the Asia region may overtake Europe as its biggest revenue-generator, as it increases head counts in Hong Kong and Singapore.
"In the next five years, Asia could be the biggest region for us if we grow at double-digit" rates, chief executive officer Boris Collardi said this week.
More than half of about 200 new bankers that Julius Baer plans to hire this year will be based in Asia, he added.
Asia contributed about 532 million Swiss francs (A$717 million) of Julius Baer's operating income last year, compared with 2.2 billion Swiss francs from Europe. However, between 2011 and 2015, Asia’s share of revenue doubled to around 20 percent of the total.
In a similar move by its global rivals, such as UBS and Credit Suisse, the firm is shifting its focus to the increasing number of Asia’s wealthy. According to reports, private wealth in the region surpassed that of North America for the first time in 2015.
In an interview with Bloomberg, Collardi said that he has not ruled out further acquisitions, but is focused on expansion through hiring. Julius Baer last year completed the acquisition of the Merrill Lynch wealth management business outside the US, which it bought from Bank of America Corp.
The acquisition of other private banks can either be expensive or pose substantial risks at a time of stricter regulation, Collardi said.
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