23 July 2017

Financial Times: Europe’s top private banks boost UK operations

Several of Europe’s top private banks are expanding their activities in the UK, shrugging off uncertainty over Brexit to capitalise on growth in the country’s increasingly attractive market for advising rich people on their money.

Senior executives at UBS, Credit Suisse, Pictet and Société Générale have told the Financial Times that they plan to accelerate investments in the UK by hiring extra staff and opening new regional offices. 

The sunny UK outlook of private bank executives contrasts with the bleaker sentiment among investment bankers, many of whom are gearing up to shift jobs and assets out of the country to avoid being cut off from their EU clients after Brexit. 

“The attractiveness of London has been going up and up and I think the appeal is increasing,” said Jamie Broderick, head of wealth management at UBS in the UK. “If you are a wealthy global citizen, then London is a natural place for you to choose, even more than Switzerland.” 

Since the pound fell after last year’s Brexit referendum, assets have become cheaper for foreign buyers, increasing the UK’s allure as a base for the global super-rich to invest their trillions of dollars in offshore savings. 

Britain’s private banking market has also benefited from Switzerland’s decision to abandon its traditional commitment to banking secrecy, shifting the balance for many offshore clients in favour of the UK. 

UBS and SocGen both see greater potential to expand their regional operations, which cater to entrepreneurs and rich families in cities like Cambridge and Leeds, instead of purely focusing on City of London financiers who may be hit harder by Brexit. 

Christian Berchem, Credit Suisse’s UK chief, said: “We see tremendous opportunities within the market, capitalising on London’s appeal to international mobile wealth as well as ultra-high-net-worth clients.” He added that Credit Suisse aimed to “selectively” hire more British relationship managers. [...]

Full article on Financial Times (subscription required)

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