What's NewS
Switzerland
IPB IN ZURICH - SWISS
tradition, Rabobank
CULTURE
Supplement for What's NewS August 1996
In the space of only one year, Rabobank Switzerland has made significant progress in putting
in place the kind of international private banking operation which will put the bank on the
IPB map. Assets under management have grown spectacularly, primarily through carefully
selected acquisitions. A sound organizational structure has been established to accommodate
projected growth and the team in Zurich is now looking to expand its dient base through
targetted marketing. What's NewS asks the team how it plans to achieve its goals.
The stately Jugendstil building
on the quiet, tree-lined
Brandschenkestrasse in the heart
of Zurich's banking district
looks every inch the private
bank. Clients are welcomed by
Katharina Fontana in the
understated solidity of the
reception area before being led
to adjacent discrete conference
rooms for discussions with their
private bankers.
Although you aren't
obliged to whisper
here, the atmosphere
suggests a muted tone
Pvould be most
appropriate. General
manager Heinz
Zimmer laughs at the
thought, especially
when this almost
solemn calm is
contrasted with the hive
of activity on the floors
above. 'We have
certainly tried to create
an area specifically
designated for clients
that will express the
tradition of Swiss
private banking they
expect - solid, discrete,
confidential.' But behind the
scenes, the 40-strong team is
actively engaged in a major
push towards building Zurich
into a name in international
private banking.
BIG NUMBERS
This push is right on track.
When Zimmer joined the bank
in June of last year, the then
small team of 17 had around
CHF 500 million under
management. 'Everyone gets
excited by big numbers,' he
says, 'so let me give you some.
If everything goes according to
plan, we will have almost CHF
3 billion to look after in the
very near future. We have
already more than doubled our
staff because without this level
of infrastructure you couldn't
run the bank. And this year we
will make 10 percent on
equity. But even though these
numbers look very good, in
relative terms we are still
miniscule. What the figures
mean is that we have come to
a position which separates the
men from the boys; if you
pursue that analogy, then we're
"pre-teen". The first thing you
have to achieve is break-even.
We have reached that point;
now we're playing catch up.'
RAPID GROWTH
Zurich has grown so rapidly
because it has pursued what
Zimmer describes as 'an
opportunistic acquisition
program'. 'If you want to
achieve the velocity we needed
to carry us rapidly from sub-
optimal size to break-even point,
then you have to go out and find
ways to bring in relationship
managers and their clients. This
is what we have done. Once you
achieve the break-even situation,
the key is to manage the growth
and still produce a decent return
for the parent company. This
Bruno Morf
explains why we have made
extremely careful acquisitions
which are self-financing. The
first was a team of relationship
managers from SB Bank, a
small, but reputable Swiss
private bank. The second was
the Swiss-based private banking
unit of Austria's GiroCredit.
There is a third in the pipeline -
Bruno Morf who is responsible
for special mandates is closely
involved in this project. But
nothing has been finalized yet,
so we can't really discuss it at
this point in time.'
INTEGRATING
ACQUISITIONS
According to Zimmer,
Rabobank Switzerland hasn't
made a big splash about these
acquisitions because it doesn't
make sense - 'if we take over a
sizeable organisation, then
we'11 do a press release,' he
laughs. 'What is important for
Heinz Zimmer
J PRIVATE BANKING IN ZWITSERLAND
Zwitserland heeft ambitieuze doelstellingen. Zoals het afgelopen jaar is gebleken zijn er al grote vorderingen gemaakt. Het begon
met de overname van een team private bankers van SB Bank en het kantoor van de Oostenrijkse GiroCredit. General manager
Heinz Zimmer is nu druk bezig met de volgende grote stap. Het Zwitserse team is inmiddels verdubbeld om de benodigde infrastructuur te krijgen.
Dit jaar wordt een ROE verwacht van 10% en het kantoor draait break-even. Het is nu tijd vooreen grote sprong voorwaarts.