ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Atal Pension Yojana rule change: Big setback for taxpayers - know how it will impact your savings
  • Home loans, EMIs to get more expensive: Now, this PSU bank hikes interest rates by .20%
  • Mask mandatory in Delhi as Covid-19 cases rise again: Check new rules and penalty
  • US inflation data: Break on 40-year peak, global markets rally - key highlights
  • Microsoft layoffs 2022: IT giant sacks around 200 more employees as recession fears rise
Read in App
Business News » World News

Edmond de Rothschild to close Hong Kong operations

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Edmond de Rothschild to close Hong Kong operations
The Geneva-based bank and money manager has already surrendered its China operating license and will run its Japan and Korea operations through its Swiss head office. Representational image. Image Source: Reuters

Swiss private bank Edmond de Rothschild is closing its Hong Kong operations, according to three people familiar with the matter, more than two decades after it opened shop in the former British territory and as costs in the wealth management industry bite.

The Geneva-based bank and money manager, which had 167 billion Swiss francs ($165 billion) of assets under management at end-June 2016, has already surrendered its China operating license and will run its Japan and Korea operations through its Swiss head office. 

"This is part of a return to Europe strategy due to rising cost pressures," said one of the people familiar with the matter who declined to be named.

The bank confirmed the closure of its Hong Kong operations in an emailed statement and said it will continue to selectively exploit growth opportunities in Asia through partnerships such as with SMBC Nikko Securities and Samsung Asset Management.

"It also reflects a wider strategy to offer its international clients best of class asset management and private banking expertise from the European market," the bank said. 

Two of the people said the Hong Kong operation would close by the end of December with its asset management arm, which opened in Hong Kong in 2007, also shutting shop.

Private banks in Asia are feeling the heat from aggressive tax amnesty programmes in Indonesia and India aimed at bringing offshore wealth home and fear regulators may impose big fines on banks who breach the rules.

Tough market conditions and the need for scale in an increasingly competitive Asian market are forcing some market players to exit the industry.

Assets under management at the top twenty private banks operating in Asia declined 4 percent to $1.5 trillion in 2015, according to a survey published by Asian Private Banker. Market watchers expect 2016 to also be tough with revenues down across business segments. 

In particular, western banks, battered after the global financial crisis, have faced growing competition from emerging Asian institutions, which have grown their balance sheets and wealth management operations significantly.

Keith Pogson, a senior partner at accounting firm Ernst & Young in Hong Kong, expects an industry shakedown to continue as Asian names such as Singapore-based DBS Group Holdings and Oversea-Chinese Banking Corp grow.

U-TURN

The 63-year-old Edmond de Rothschild opened in Hong Kong in 1992 and was among the first of a wave of boutique private banks seeking to capture the business of a rapidly growing class of affluent Asians.

The private bank`s eponymous founder was a Swiss-born member of the Rothschild family of industrialists.

The firm embarked on an aggressive expansion plan bringing in six senior bankers in April 2014 to expand its offering to corporate banking and trust planning.

It appointed Jing Zhang Brogle as the new Hong Kong CEO last August, bringing her in from Swiss bank Vontobel where she looked after greater China operations.

It is unclear how many staff will be affected as part of this withdrawal. At end 2015, the group employed 1,771 employees globally with 766 staff in Switzerland and the rest abroad, according to its annual financial statements.

Net income at the group declined 11 percent to 56 million Swiss francs at end-2015 from a year earlier, according to its annual report.

China`s banking regulator approved a request by the company to close down its Shanghai representative office in May this year. It was among the first to get a Qualified Foreign Institutional Investor quota in 2006. 

(Reporting by Saikat Chatterjee; Additional reporting by Samuel Shen in SHANGHAI; Edited by Sam Holmes)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
EconomybankRothschildHong KongGenevaSwissKoreaJapanChina
Written By: Reuters
Updated: Thu, Dec 08, 2016
03:02 pm
Reuters
RELATED NEWS
OPEC cuts oil demand forecasts as economic growth slows OPEC cuts oil demand forecasts as economic growth slows
India to be fastest growing economy this year - What government source said India to be fastest growing economy this year - What government source said
Surge in credit demand, falling liquidity may lead to credit tightening: Report Surge in credit demand, falling liquidity may lead to credit tightening: Report
Government releases Rs 1.16 lakh crore of tax devolution to states Government releases Rs 1.16 lakh crore of tax devolution to states
Asian shares slip ahead of crucial US inflation data Asian shares slip ahead of crucial US inflation data

LATEST NEWS

Epost Office National Flag: How to buy Tricolour online to participate in Har Ghar Tiranga campaign – know easy steps

Next Bank Holiday August 2022: Independence Day on Monday; here is a full list of holidays this month in major Indian cities

Syrma SGS Technology IPO subscription opens today: Check price band, allotment and listing date

Delhivery share price falls almost 14% in 3 straight sessions amid poor Q1 show – know what brokerage says

International Youth Day 2022 theme, quotes and history - Tackling issues and achieving sustainable development together

Atal Pension Yojana Income Tax benefit for salaried employees after new rule: All you need to know

General insurance sector logs 21% premium growth in July: IRDAI

How smart farming methods can boost small farmers' income

Apple iPhone 14 launch - Big development! Check latest updates, expected release date and price

Asian Share Markets Today: What investors should know

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV