Credit Suisse Plans to Sell Off Assets to Focus on High End Markets
A souce close to the bank said last Thursday that Credit Suisse is reviewing the sale of part of its private bank operation in Germany. This is part of the bank's strategy to improve its profit returns through its focus on the high moneyed market instead of expanding to the larger 'mass affluent' client market.
The Swiss bank industry have been struggling with their bottomlines with their onshore European operations. This aspect of their business has increased in importance as governments and regulatory agencies have begun to crack down on the status of Switzerland as an offshore tax and banking haven.
Other Swiss banks such as UBS and Credit Suisse have responded through increasing their efforts in enticing the ultra rich segment compared to the moderately rich. This is because that transaction volumes are larger compared to the albeit larger segment. The ultra rich funds would be able to support other businesses of the bank.
According to Rolf Boegli, Credit Suisse's head of premium clients, who told Reuters at the Global Wealth Management Summit just this week, "If you are successful in acquiring one of these clients, this will move the needle."