Vontobel Reports Rise In Client Assets; Hails ANZ Co-operation

Tom Burroughes

31 July 2014

Switzerland’s Vontobel said today that clients assets reached SFr172.7 billion ($190 billion) at the half-way stage of 2014, rising 6 per cent from the end of last year, driven by what it said was its successful hook-up with Asia’s improved its BIS Tier 1 capital ratio which was high at 26.1 per cent, which is “testament to the bank’s stability and soundness”. Swiss banks typically adopt higher capital ratios than their international counterparts.

The bank’s co-operation deal with Raiffeisen, which expires in the middle of 2017, will mean Vontobel is repurchasing its 12.5 per cent shareholding that was held by Raiffeisen relating to that agreement, at a cost of around SFr270 million. The bank said a proposal over the cancellation of the repurchased shares will be put to a general meeting of Vontobel shareholders in the spring of next year. After this transaction is completed, the BIS Tier 1 ratio will drop to a still “very solid” base of 21 per cent, it said.

"In operational terms, we were able to follow on from the strong showing in the same period last year. Our growth is increasingly driven by a range of different pillars in private banking, our business with external asset managers, and investment boutiques in asset management," said Vontobel CEO Zeno Staub.

Among recent developments, Vontobel said that it appointed top-ranking former Societe Generale banker Alex Fung as chief executive of its private wealth management business in Asia.