Bank Sarasin has undergone a period of tremendous growth and the results demonstrate the success of the strategy to transform one of Switzerland’s oldest private banks.

“I don’t want to be everything to everybody. I want the bank to be terrific in specific areas. The rest I can buy in,” Joachim Straehle, chief executive of Bank Sarasin, told WealthBriefing immediately after announcing record results for the half-year ending 30 June 2007. Bank Sarasin has undergone a period of tremendous growth and the results demonstrate the success of the strategy to transform one of Switzerland’s oldest private banks. Group results leapt by 70 per cent to SFr111 million compared to SFr65 million for the same period in 2006. New money inflows totalling SFr6 billion were recorded and assets under management climbed to an all-time high of SFr84.4 billion. Mr Straehle said that he is proud of the bank’s “longstanding tradition of quality and inter-activity”. Bank Sarasin was founded in 1841 in Basle on the wealth generated by the chemical industry for which that city is famous. Nonetheless, the present phase of the bank’s development is driven by a strategy “to make it the top address for customised investment solutions and for independent product consulting”. “We are achieving this by hiring the very best talent, targeting clients in selected international growth markets and optimising our booking centre facilities in three locations," he added. The results identify success in both growing business in Switzerland with net new money at SFr1,619 million (compared with SFr 696 million in the first half of 2006) and SFr2,220 million from international locations, particularly South-East Asia. “Our goal is to accumulate SFr100 billion of assets under management by 2010 . Of which 30 per cent will come from international locations, 40 per cent non-domiciled and 30 per cent domiciled clients in Switzerland,” Mr Straehle said. So far, international expansion has focussed on South-East Asia where Mr Straehle has spent much time. One of the bank’s three booking centres has been established in Singapore. On 6 June 2007 the management structure was strengthened with the recruitment of Asian banker Enid Yip from Credit Suisse as vice chairman, Asia. In addition, Bank Sarasin has been successful in attracting new clients in Dubai and India. Mr Straehle used the phrase “new people, new blood” and there has certainly been much of that. A new board has been elected, new members of the executive committee and heads of divisions have been appointed along with location managers in Switzerland (Geneva, Lugano and Zurich) and internationally. In all some 50 new staff have been hired this year and recruiting continues except for the headquarters where the headcount has been reduced. Mr Straehle says he is looking for “more and more quality people”. Mr Straehle is pleased to recall that despite all the changes the staff turnover rate has been reduced to 6.8. Noting the importance of retaining client relationship managers, “they are here for life” he told WealthBriefing. At the heart of the transformation of Bank Sarasin is the recent change in ownership. Since April 2007, the triple-A rated Dutch financial services group Rabobank has owned 46.06 per cent of the share capital and holds 68.63 per cent of the voting rights, making it majority shareholder in the Swiss bank. However, Bank Sarasin retains its operational independence as well as its public listing on the Swiss Stock Exchange. In order to better focus on the core business of a private bank the sales and research operation and the Luxembourg bank have been sold. Mr Straehle explained: “the brokerage business took up too much management capacity”. Looking to the future, Mr Straehle said growth initiatives would be undertaken in the markets of the future - Asia, London and the Middle East- and the recently announced venture with AIG Private Bank. On 9 July 2007 Bank Sarasin announced that together with AIG Private Bank they would open a new bank dedicated to providing clients with investment and savings solutions. Bank Sarasin owns 57.5 per cent of the shares in this new venture. The banks plan to combine their direct business with affluent clients (assets up to SFr500,000) and in particular their business with independent financial providers. This bank will begin operations with 235,000 clients in Switzerland, Germany and Austria and will manage assets of approximately SFr8 billion. Thereafter, Mr Straehle expects to recruit between 4,000-6,000 clients every month. This will bring much new business growth with little additional cost. “As new banking operation will run on Bank Sarasin’s platform and there will be low marketing costs,” explained Mr Straehle.