Schroder & Co Bank AG would transfer its Eastern European private banking activities to Swiss private bank Compagnie Bancaire Helvetique (CBH) for an undisclosed amount. The closing of the transaction is expected during the fourth quarter of 2018 and is subject to the relevant regulatory approval.
This follows a comprehensive review of Schroders’ range of services provided to clients from Eastern European countries; it concluded that clients in this region would be better served by a bank that specialises in this geographic area. With this transaction, CBH pursues one of its strategic priorities, growth through targeted acquisitions in its core markets.
CBH has a long-standing history servicing and advising Eastern European clients. Both Schroders and CBH firmly believe the transaction guarantees continuity in the servicing of the clients in scope and a successful integration of the related team.
The current client portfolio is in the region of CHF700m assets under management (as of 30 June 2018). The financial terms of the acquisition are not disclosed. This transaction will not impact the equity strength of CBH, maintaining after completion of the transaction one of the highest Tier one ratio among Swiss Private Banks, currently above 30%.
Philippe Cordonier, CEO, CBH Compagnie Bancaire Helvétique commented: “This transaction demonstrates our long-term commitment in this strategic growth market and our intention to pursue the growth of our Zurich operations. We very much look forward to welcoming our new colleagues and clients.”
Recently, CBH Bank has been reinforcing its presence in Zurich with the acquisition of the Private Banking activities of FIBI Bank (Switzerland), Zurich in 2017 and of Banque Privée Espirito Santo in 2014.