Vontobel Shuts Private Banking In Dubai, Switches Operations To Geneva

Tom Burroughes

21 February 2013

Swiss private bank Vontobel is shutting onshore private banking and wealth management operations in Dubai and transferring them to Geneva, while investment banking and related services will continue to operate from the Middle East jurisdiction.

There have been redundancies in Dubai this week at the Zurich-headquartered bank, a source, who asked not to be named, told this publication, although no exact figure was given. A spokesperson for Vontobel did not comment on specific numbers but said activities were being switched to Switzerland as part of a strategic change.

This summer, Lionel Pilloud will be appointed the new head of the Geneva branch, taking over from Jean-Pierre de Glutz, who is retiring from the post in July, the bank said in a statement. Pilloud has spent the last 12 years managing the advisory business for French-speaking Switzerland within the financial products division of the firm.

"Lionel Pilloud has an in-depth knowledge of our areas of expertise as well as our service and advisory approach, and he understands the high expectations of our clients. He will implement and further develop our Group-wide activities in our Swiss home market as well as the cross-border initiative in the private banking business unit in the French-speaking region,” Georg Schubiger, head of private banking, said.

"Our first priority is to ensure that we systematically focus on our clients. We are therefore also implementing our proven cross-border approach in Geneva – especially for wealthy private clients from the Middle East who traditionally have strong ties with the financial centre in the French-speaking region of Switzerland – and we are exiting the onshore business in Dubai. This measure will enable us to concentrate even more intensively on individual client needs, service quality and investment

Expertise,” Schubiger said.

Changes, alliances

Vontobel has made a number of changes in recent months. It is combining cross-border and onshore activities in its private banking business with German clients. Chief executive Zeno Staub has said that this move will ensure an “optimised market and client focus and will also create synergy potential.” Operational responsibility for Private Banking Germany has been assigned to Roland Rötheli, who was heading the Zurich-based business with German clients. Meanwhile, Vontobel last year signed an agreement with Australia and New Zealand Banking Group, under which Vontobel will expand its activities in Asia-Pacific – primarily in the growth markets of Australia, New Zealand, Hong Kong and Singapore.

In this agreement, Vontobel will provide expertise in global investments, structured products and tools, client advisory and client processes to the private banking business of ANZ. ANZ, which aims to grow its own private banking business in Asia-Pacific, wants to use Vontobel's expertise in the areas of investment management and structured products, as well as its advisory services for wealthy ANZ private clients.

The bank said Geneva is a “key location for Vontobel as part of its defined home market strategy”.

As of 31 December 2012, Vontobel held SFr150 billion of assets and employees around 1,400 staff worldwide.