Growing Asian affluence attracts private banks

Hong Kong's position as a hub for the private banking sector continues to attract Swiss institutions, as wealth grows across the region. By 2013, according to the most recent Merrill Lynch Capgemini World Wealth Report, the Asia-Pacific is set to overtake the United States, which is the world's leader with about US$13.5 trillion held by the rich.

Kenneth Toong, Clariden Leu Asia chairman, says Hong Kong plays a strategic role in the bank's Asia operation.

'Asia has been identified as one of the key markets for future growth and expanding our footprint here will be a priority,' Toong says. 'We strengthened our capabilities in China with four key appointments. These appointments are a clear indication of our commitment to Asia and the tremendous opportunities we see.'

Clariden Leu has more than 160 employees in the region, a tenfold increase since coming to Asia 25 years ago. When hiring relationship managers, Toong says Clariden Leu looks for at least 10-15 years of local, market-specific experience. 'On-the-ground expertise is important, as advice will never be taken as seriously as when you have the relevant, local experts,' he says.

He says wealthy clients look for solidarity and safety. 'With a 24.6 per cent tier-one capital ratio and a cost/income ratio of 67 per cent, Clariden Leu is also one of the best capitalised financial institutions in the world,' Toong says.

As the number of high-net-worth individuals in Asia expands, Toong says Clariden Leu places an emphasis on delivering premium wealth-management solutions that meet its clients' needs. 'Our approach is centred on providing premium service including discretion, preservation of tradition, confidentiality and deep industry knowledge,' he says. 'Careful analysis is used to assess each client's risk profile.'