ZURICH, May 29 (Reuters) - Union Bancaire Privee (UBP) isbuying Lloyds Banking Group's international privatebanking arm as the British bank sheds assets to shore up capitaland the Swiss wealth manager presses on with a recent buyingspree.
Privately-owned Geneva-based UBP has made several deals inthe last two years as it seeks to rebuild an asset base whichalmost halved through the financial crisis from a 2007 peak of135 billion Swiss francs ($138 billion).
The deal, subject to regulatory approvals, will lift UBP'sassets under management, which stood at 83.2 billion francs atthe end of April, by more than 10 billion francs, the bank said.Terms of the transaction were not disclosed.
Recent acquisitions by UBP include ABN Amro's private banking arm, Paris-based asset manager Nexar and aportfolio of assets from Spanish bank Santander's Swissasset management arm.
"The acquisition adds more assets in Zurich and Geneva, andallows us to open a booking centre in Monaco, which is a growingcentre for tax compliant money, family offices and very high networth individuals and families," UBP Chief Executive Guy dePicciotto told Reuters.
UBP, which currently has some 1,300 employees, will takeover Lloyds' Swiss, Monaco and Gibraltar operations, adding 250to 500 staff and increasing its asset bases in Zurich andGeneva, as well as in South America and the Middle East.
UBP said it would adapt its workforce to global activities,though it was too early to discuss possible job cuts.
The purchase comes at a time when Switzerland's privatebanks sweat over the effects of potential deals betweenSwitzerland and governments in the United States and Europe toroot out untaxed money from Swiss banks.
"It is true everyone is waiting to see what happens, butmeantime there are clients to be served, and I don't see why weshouldn't continue to do manage their assets," said dePicciotto. "Switzerland is a stable country with a solidcurrency and no debt, so it is still attracting tax-compliantmoney."
Lloyds has been looking to sell assets to boost capital, andlast week raised 450 million pounds from the sale of a 15percent stake in wealth manager St. James Place.
"When Lloyds decided to concentrate on their local marketthey contacted a few possible bidders including us. We saw anice client book and good managers, so for us it was ano-brainer," said de Picciotto.
The British government holds a 38.8 percent stake in Lloydswhich it has held since stumping up 20.5 billion pounds ($31billion) to rescue the bank in 2008. After a prolonged slump,shares in the bank recently hit a price that would allow thegovernment to break even on its investment.
Lloyds (LLOY)