Schroders Keen to Build Private Banking Business, Plans Relocation to Zurich

Contributing Editor

26 May 2006

Schroders says it plans to expand its private banking business and base its wealth management business out of Zurich, according to a Reuters interview with Alan Brown, its head of investments. Mr Brown said in the report that the private bank has a European focus, and the group would, in all likelihood, not make takeovers in that area, although he would not rule them out either. He added that there was "phenomenal competition" from groups like UBS and Credit Suisse, which it planned to fight by offering specialised investment services, not the full array of private banking operations. Mr Brown said hedge funds are likely to play a major rule in this strategy. First quarter results at the London-based asset management firm showed its private banking business outperforming its institutional business. During the quarter, the private banking business brought in £200 million of net new money, compared to an outflow on the institutional side of £2.3 billion. Pre-tax profits for the private banking unit more than doubled in the quarter on a year-on-year basis to £3.7 million.