From Breakingviews - Rivals can feast on Credit Suisse client spoils
. Shares in Julius Baer, soon to become the second largest Swiss wealth player with 424 billion Swiss francs in assets under management at the end of 2022, are up 14% this year after rallying earlier this year in anticipation of more inflows.
Another client drain will come from wealthy clients following private bankers out of the new UBS. Bank rivals see a once in a lifetime opportunity to woo talented relationship managers from the big Swiss lenders, executives at some UBS competitors said. “Even the most loyal staff are now testing the waters,” one top Zurich-based banker told Breakingviews.
Such changes will not happen overnight. Bankers may need months to switch firms. Moving clients also requires fund scrutiny. While it can take just a week to take on a new rich Swiss customer, doing so in Singapore requires more than 30 days. And Credit Suisse is hardly incentivised to transfer securities swiftly.
Finally, the stain of a second Swiss bank rescue 15 years after the UBS crisis of 2008 is an open goal for rival financial centres. Hong Kong could surpass Switzerland's $2.5 trillion of foreign wealth assets this year – it would only require a 10% annual rise in cross-border wealth, Breakingviews calculations based ondata show. Singapore could by the same measure nearly match Switzerland in 2026.
Even if the switch happens more slowly, Switzerland’s new bank Goliath has plenty of Davids to fend off.
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