Standard Chartered is selling a Swiss private bank as the firm, which earns the bulk of its revenue outside Europe in regions such as Asia, vows to focus on core business.

Standard Chartered is looking to sell its private bank in Switzerland as part of its plans to reduce several of its non-core businesses as it sharpens its focus on trade and the creation of wealth across Asia, Africa and the Middle East.

As part of its strategy unveiled in November, the bank, which earns the vast majority of its revenues in regions such as Asia, said it was selling or shutting small peripheral businesses outside of its core markets as it looked to deploy capital more effectively.

A spokesperson told this publication yesterday that while Standard Chartered is looking to sell its Swiss private bank, it will continue to run a commercial bank in Switzerland. Wealthy clients that use the Swiss operation will be able to use similar private banking operations in other parts of the world, the spokesperson said.

"Following a comprehensive review of its private bank booking centre in Switzerland, Standard Chartered has decided to discontinue its private bank booking centre in Geneva and consolidate the advice and servicing of its Swiss booked clients into London, Jersey, Middle East, Singapore and Hong Kong booking centres," the bank said.

The move comes amid a global crackdown on tax evasion that is putting huge pressure on Switzerland's private banking industry. As a result of weakening bank secrecy laws and heightened regulation, many players are now looking to consolidate and streamline their businesses as they seek to cope in the new business environment.

According to the Association of Foreign Banks in Switzerland, from the start of 2012 to the end of May 2013, the number of foreign-owned private banks operating in Switzerland declined from 145 to 129 due to the roll-back of bank secrecy regulations. Meanwhile, over the preceding five years, foreign banks' assets under management fell 25 per cent to SFr870.7 billion ($973.8 billion), due to their clients paying taxes or withdrawing money.

Overhaul
The news comes after Standard Chartered Private Bank named a new group head of private banking based in Hong Kong earlier this week. Effective 17 February, Michael Benz joins the company from Julius Baer, where he was the designated chairman for Asia.

In January, Standard Chartered said it was reorganising its business and making changes to the bank’s board, in an effort to deliver better financial results. The changes were first announced at an investor day in November 2013.

From 1 April 2014, the group’s wholesale banking and consumer banking businesses are to be integrated and run by Mike Rees, who will be appointed deputy group chief executive simultaneously. He joined the group in 1990, was appointed to the board as group executive director in August 2009 and has been CEO of wholesale banking since 2002.

Rees will continue to report to group chief executive Peter Sands, as he heads up the new business. This will be divided into three new customer segment groups; corporate and institutional clients, commercial and private banking clients, and retail customers, as well as five global product groups including financial markets, corporate finance, transaction banking, wealth products and retail products.