Swiss private bank UBP buys ABN Amro's Swiss bank

ZURICH: Crisis-shaken Union Bancaire Privee (UBP) said on Tuesday it was acquiring ABN Amro Bank (Switzerland) for an undisclosed amount in cash as it regains its footing in the consolidating Swiss private banking sector.

Geneva-based UBP, which lost more than half of its assets to client withdrawals and investment losses in the wake of the financial crisis, said the acquisitions would add 20 percent to its overall assets under management.

The bank has been seen as a takeover target for deep-pocketed rivals like Julius Baer rather than a predator even though it managed to close off all liabilities related to its investments in Bernard Madoff's massive fraud last year.

The financial crisis battered asset valuations and plunging risk appetite led clients to flee from funds of hedge funds, where UBP was once one of the world's biggest players.

ABN Amro Bank (Switzerland) held 11 billion euros in client assets under management at the end of the first quarter and employs over 350 staff, the two banks said in a joint statement.

"We are very pleased with this transaction which adds scale to our domestic platform and further strengthens our position at the forefront of the wealth management industry in Switzerland," UBP Chief Executive Guy de Picciotto said in the statement.

Consolidation in the Swiss private banking industry has also been boosted by a clampdown by German and US authorities on tax-evading clients.

Switzerland struck a tax deal on secret bank accounts with Germany last week, lifting part of the uncertainties for the banks.

Banks such as Germany's Commerzbank, Dresdner Bank and ING have shed their Swiss private banking units as they overhauled their business models in the wake of the credit crisis.

Copyright Reuters, 2010