“It’s definitely a significant time commitment, but hiring, developing and retaining the most talented professionals in our industry is the cornerstone of our strategy,” said DeChellis in a recent interview.

“It’s how we create a professional services partnership-like culture and secure a shared vision for creating value for our clients... that just isn’t possible to do when there are 18,000-plus relationship managers,” he said.

Being “the best place for the best talent” is one of Credit Suisse Private Bank’s top priorities, according to DeChellis’s plan for the firm’s positioning in wealth management. Also high on the list is “being very clear to the market about who we serve and how we create value for clients.”

“We want to deliver comprehensive wealth management services to high net worth and ultra high net worth clients who we generally describe as families with $10 million plus in liquid assets,” DeChellis said.

“To the families we aim to serve, we want to be seen as accessible and accommodating. Delivering the entire capabilities of our firm from IB to PB is a key differentiator. When appropriate, clients should have access to the products, services and intellectual capital of the entire firm regardless of which CS division it resides in. Advice is at the core of what we feel we do best,” he continued.

When DeChellis joined Credit Suisse in 2006 from UBS, where he ran the private wealth management business for the US, the Credit Suisse US private banking business sat within the CS investment bank. The private client business was an extension of investment banking, and was made up of the former First Boston and Donaldson Lufkin Jenrette businesses, which Credit Suisse had acquired in 2000. At that time, the firm was still seeking direction for the Americas region and DeChellis, with three years at UBS and 15 years at Merrill Lynch under his belt, was recruited as the pathfinder.

“Our first job was to make the investment bank our biggest fans. They are our clients, so they know exactly what their clients will get when they refer them to the private bank. We had to earn their confidence before any potential referrals would become a reality. I believe we have succeeded given the increased activity we have seen between the two divisions of the firm,” he said.

Crisis? What Crisis?

Under DeChellis’ watch, it does appear the firm’s Americas business has thrived. Upon his arrival four years ago, it had 200 relationship managers in the US – it now boasts 400 and is still growing, although DeChellis is clear that in the medium–term he doesn’t see the number going above 700. The ideal number in three years, he believes, is 600 relationship managers for the US and 300 for Latin America.

“Again, our strategy is based on the quality of our people, I’m interested in how many of the best people in the industry we employ, not just a number….the talent level and the individual productivity of a relationship manager is where our management team is focused…we believe a Credit Suisse Private Banking franchise is very valuable and we don’t offer them lightly,” he said.

Also, in contrast to loss and breakeven results in the industry over the last four years, PB Americas profits have doubled during his tenure as Credit Suisse raked in new clients and assets, thanks to its solid financial position and reputation as a safe pair of hands unsullied by toxic debt.

A focus on certain types of clients has paid off as well.

“We work with 70 per cent entrepreneurs and business owners, which are dynamic and growing segments in private wealth,” said DeChellis. “Only 10 percent of our clients are from inherited wealth… which has struggled over the past few years. We saw an increase in advisory accounts, which we are happy to have, and right now it’s balanced about fifty-fifty advisory and discretionary.”

Latin America is high on DeChellis’s radar as the firm continues to grow in the region. Presently, there are 200 relationship managers serving clients in Latin America, which he sees as ripe for expansion.

“The Latin American international market is mature but has room to grow as we offer clients increased services and the ability to book assets on a multi-shore basis. Central to our strategy is to continue to build our domestic businesses, in key markets like Brazil, and Mexico,” DeChellis said.

Although it started out as Schweizerische Kreditanstalt in Zurich in 1856,with a mandate to provide credit for the booming railroad business, the firm did not take long to spread its geographic wings. The firm opened its first New York branch in 1870. However, it wasn’t until 1964 that it received a full-service banking license. In 1988 the firm took a stake in First Boston and two years later became the majority shareholder.

Today the Credit Suisse has more than 48,000 employees worldwide across three business lines , with 24,600 sitting in the private bank group.

Overall, the bank has avoided most of the losses that hit its Swiss rival, UBS, but it has not entirely escaped the turmoil. In its second-quarter results issued on 22 July, the bank said its private banking pre-tax income in the second quarter dropped by 7 per cent year-on-year to SFr874 million . Stable revenues of SFr2.99 billion were more than offset by a 9 per cent increase in operating expenses.

Admirable 

The bank’s stated goal is to be “the world’s most admired bank.” Most in wealth management would have to agree that it is well on the road to achieving that. The clarity of purpose and vision set out by DeChellis four years ago have delivered results in extremely difficult economic times. As the market continues to improve, he plans to stick to the charted course - working with clients at $10 million and above and providing highly personal service using the resources of both the IB and PB sides of the bank.

“We have no desire to build a traditional, mass retail brokerage business– that model is challenged and under severe pressure, it’s supported in part by inertia, but ultimately significant changes to that current business model will have to be made,” he said.