Falcon Private Bank is exiting the Hong Kong private banking business in a decision to “sharpen its emerging markets focus” in the Middle East, Africa and Eastern Europe. It will introduce clients to EFG.

Falcon Private Bank is exiting the Hong Kong private banking business as part of a decision to “sharpen its emerging markets focus” in the Middle East, Africa and Eastern Europe, and will introduce clients to EFG Bank, the Asia business of Swiss-headquartered EFG International, the firms announced today.

As part of the agreement, some Falcon employees will transfer to EFG, the banks said in statements.

Falcon said its Hong Kong branch will shut down once the transfer process is completed. Falcon Private Bank’s Singapore branch will continue to serve as a private banking hub in Asia, however.

“Today’s announcement supports our strategic ambition to become a leading emerging markets private bank focusing our business exclusively on markets where we have a sharp competitive edge,” Eduardo Leemann, chief executive at Falcon Private Bank, said.

“In EFG we have found a strong, entrepreneurial and experienced global group that can ensure excellent service and continuity in the best interest of our Hong Kong clients and staff,” he added.

Both Falcon and EFG have, in different ways, been restructuring their businesses through a run of M&A deals in recent months. For example, Falcon bought the Clariden Leu (Europe) business of Credit Suisse in 2012; in June last year it agreed to buy the Central and Eastern Europe private banking business of Hyposwiss Private Bank Zurich. EFG has spun off or sold some business units to restore profitability.

Asian presence

The Asian operations of EFG Bank were set up in 2000. Initially based in Hong Kong and Singapore, the business now has a regional network also present in Shanghai, Taipei and Jakarta.

Falcon Private Bank has branches and representative offices in Geneva, London, Hong Kong, Singapore, Abu Dhabi and Dubai

EFG said it will work with Falcon to “ensure a smooth introduction of client relationships during the first half of 2014”.

“A number of client relationship officers and related support staff will move from Falcon Private Bank to EFG Bank, EFG International's business in Asia. The assets under management involved are circa SFr800 million, and it is expected that the lion's share of this will ultimately move across to EFG,” the Swiss bank said.