Notenstein La Roche Private Bank has entered into an agreement with Vontobel to sell its Eastern European non-strategic asset management portfolio.
The portfolio includes CHF2bn ($2.07bn) in assets under management.
Under the terms of the agreement, a majority of employees in the Notenstein La Roche's Eastern European private banking portfolio will be transfered to Vontobel. The transferred team will join Vontobel’s current Central & Eastern Europe team.
The portfolio primarily includes high net worth individuals (HNWIs) from Eastern European countries.
Vontobel will fund the transaction through equity financing. The transaction is expected to be closed in the coming weeks. The portfolio will be transferred to Vontobel’s Swiss booking platform.
Notenstein La Roche CEO Adrian Künzi said: “As part of our rigorous development strategy, we are focusing our extensive advisory expertise on our Swiss home market and a few selected international markets.
“This means giving up certain markets and directing future investment to markets where we can best meet our clients’ needs and operate at a profit.”
Vontobel head private banking and executive board member Georg Schubiger said “The Eastern European portfolio perfectly complements our organic growth in the region. It strengthens our commitment to grow steadily in our home market and our focus markets.
“In addition, it improves our position in a region where we already have strong capabilities. We welcome all the new clients and look forward to our new colleagues.”
In 2015, Notenstein Private Bank, a subsidiary of Raiffeisen has acquired the client relationships and staff of Bank La Roche. After the transaction was completed, the new entity was called Notenstein La Roche Private Bank.
The acquisition of Bank La Roche which manages $7bn of assets, was aimed at bolstering Notenstein Private Bank's core business.
Image: The portfolio primarily includes high net worth individuals (HNWIs) from Eastern European countries. Photo: courtesy of adamr/Freedigitalphotos.net.