Bank Sarasin
Benelux s.a.
GROUP NEWS
Selective acquisitions
Bank Sarasin
Controversial move
26 I The Word I
What's in a name? Former Rabo Robeco Luxembourg - under new management
Although 'synergies' and 'perfect fit'
have become rather clichéd, the reality is
that this alliance offers both to both
parties. Rabobank was looking to grow
this business through critical mass and
strong branding. Bank Sarasin wanted
greater access to international markets,
supported by a strong partner. As al-
ready stated, the move on Bank Sarasin's
part is unique in Swiss private banking
history (see sidebar). According to Bank
Sarasin's CEO Peter Merian, 'The
opportunities and potential opening up
to us are great. So are the challenges,
especially in extremely difficult markets.
However, through the alliance, we aim
to doublé assets under management in
the next five to seven years. Further, we
do not discount the possibility of
making selective acquisitions to achieve
that goal.'
Bank Sarasin (foundecl 1841) is the oldest ntember of Basei's Stock
Exchange. A higbly reputable and venerable private bank, its core business
is advising private banking clients and managing their assets. Services and
products include institutional asset management, investment trusts, corporate
finance, brokerage, financial analysis and investment funds. Bank Sarasin's key
figures are:
Total assets under management€27 billion (private and institutional clients,
Clients
Market capitalization
Capital reserve
Personnel
Offices
and investment fund assets)
30,000 (primarily Swiss and German)
€950 million
€57 million
850
Switzerland: Basel, Zurich, Geneva and
Lugano
UK: London
Germany: Hamburg and Munich
Channel Islands: Guernsey
At a time wben Swiss private
banking is battling tough
economie and market conditions
and cbanging fiscal environments,
especially in Europe, financial
analysts responded positively to
the strategie alliance between
Triple-A rated Rabobank and
Bank Sarasin. According to ana
lysts, this could prove the start of
a trend whereby Swiss and other
domestic financial institutions
seek 'foreign' partners. Driving
the alliance from Bank Sarasin's
perspective were the bank's
Chairman, Dr Georg Krayer, who
is also President of the Swiss
Bankers Association, and CEO
Peter Merian. According to Dr
Krayer, 'Bank Sarasin was at a
crossroads. lt was time to struc-
ture the bank for the future. The
alliance will help us do that.' The
alliance was controversial in Bank
Sarasin's home market. Many
found the idea of even partial
'foreign' ownership very difficult
to accept. Arguing the case for
alliance, Dr Krayer questioned
whether a Swiss passport was
essential for the management of a
solid, reputable and client-ori-
ented bank. '1 believe that nation-
ality alone is no guarantee, either
for reputation or quality.
Eor the domestic market, market
ing efforts have focused on the
concept of 'Sarasin remains
Sarasin'. Says Peter Merian, 'It is
important for our dient base in
Switzerland to understand that
there will be no change in our
identity or legal position as a
Swiss private bank. All our part
ners and personnel will remain
with the bank, ensuring continuity
of service to clients and focus on
top quality service. Essentially,
that service will now be enhanced
even more by the addition of new
products and services from
Rabobank's offering, not least
those of the Robeco Group.'
