Print this article
EXCLUSIVE: UBP Sets Optimistic Tone On Asia Strategy
Tom King
WealthBriefingAsia
7 October 2013
Union Bancaire Privée, the Swiss-based private bank, is watching
potential asset bubbles in the Asia-Pacific region, but the region is in better
shape than in the past, the bank told this publication recently. This publication spoke in a meeting to Michel Longhini, the
global chief executive of private banking at the firm, on one of his many trips
to the region. Also present was Stephan Repkow, CEO, private banking, for
in Asia. Longhini cited real estate as one area of potential concern
about an asset bubble, but went on to say that UBP has not been an aggressive
lender in that sector. However, having seen several peaks and troughs in Asia over the course of his career, he felt the region
was better prepared than on previous occasions for such market gyrations. The firm spoke at a time of continued development by European firms in the
Asia private banking industry; a number of Swiss banks, for example, such as UBS and Julius
Baer, have sought to build operations out of hubs such as Singapore. Not
all the movement has been one-way: a few days ago, it was reported that Societe
Generale, the French bank, had received bids for its Asia
private bank, although the Paris-listed firm has declined to comment. In UBP’s case, the firm is on an upward track in terms of
expansion – it recently bought the international private banking arm of Lloyds.
The firm is on track to reach $100 billion in 2014, rising from its current $87
billion today. On top of a solid balance sheet, the bank has a Tier 1 ratio in
excess of 32 per cent - well above the regulatory requirements and as such UBP
ranks among the most strongly capitalised Swiss banks. It is a status the firm is keen to stress at a
time when memories of the 2008 financial crisis linger. UBP recently received approval to conduct its business as a
merchant bank in Singapore;
the bank said it had been a lengthy but worthwhile process. The upgraded
licence will now allow the bank to offer an expanded range of wealth management
services as well as take assets on deposit in its Singapore booking centre. Asked if the bank had set a target or specific timeframe for
growth in Asia in terms of assets under management or revenues, Longhini said they had not and that
the objective had always been to develop a robust long term business across Asia. The bank has built assets under management in Asia in excess of US$1 billion and at present manages
around 200 clients. We discussed the recent acquisitions of ABN AMRO’s Swiss private
banking unit and the Lloyds deal; I asked if these will be followed by an
acquisition within the Asian region. Longhini said the bank had bought in Europe as the businesses acquired had dovetailed with
exactly what they were seeking at that time. The Lloyds acquisition, for
example, gave the bank more coverage of the Anglo Saxon world and will also see
UBP opening new offices in Monaco
and Gibraltar. He said the bank was delighted
with the quality of the personnel that had come from both purchases. Neither Repkow or Longhini rule out purchases in Asia, although they think it would be challenging to find
a business that would complement its existing sophisticated methodology. Both men carry plenty of experience to their roles. Longhini
was formerly head of BNP Paribas Wealth Management International, as managing director
of its private banking division; he has worked in the industry for more than 20
years. Repkow, who like his colleague has worked at BNP Paribas, joined UBP in
2011; before joining the bank, he was chief investment officer at Swiss-Asia
Financial Services and held a number of high-profile positions, including those
at Deutsche Asset Management and Citigroup Private Bank. Rankings As far as how the bank sees itself in the pecking order of
the Swiss financial industry, both agreed that the bank is now one of the major
players in the country’s wealth management industry. With UBP being private family owned, Longhini said this
factor gave the bank an edge when working closely with Asian clients where most
of the burgeoning new wealth is self-made. Both senior bankers said the bank
fitted well with ultra high net worth clients.