SYZ Group: Royal Bank of Canada (Suisse) SA becomes Banque SYZ Suisse SA

GENEVA, Aug. 31, 2015 -- Seven weeks after the agreement was announced, the SYZ banking group announces the completion of the acquisition of Royal Bank of Canada (Suisse) SA. The acquisition, approved by FINMA, the Swiss Financial Market Supervisory Authority, became effective on 28 August. The new entity is called Banque SYZ Suisse SA and its merger with Banque SYZ SA is scheduled for end 2015.

Announced on 14 July, the agreement to acquire Royal Bank of Canada's Swiss private banking business was finalised in a matter of weeks, following the approval of the Swiss regulatory authorities.

This acquisition enables the private banking division of the SYZ Group to double its assets to CHF 22 billion (resulting in a total of CHF 40 billion of assets under management at Group level) and to expand its international footprint. In addition to Europe, where SYZ has built its reputation, the bank will also have operations in Latin America, Africa and the Middle East, and will be able to benefit from the recognised expertise of the teams in these regions.

The acquisition was entirely financed by internal resources, demonstrating the SYZ Group's sound financial position. The Group's equity and liquid assets significantly exceed current Swiss standards, which are amongst the strictest in the world. From 2017, the profits from this acquisition are forecast to contribute an additional CHF 30 million per year to the SYZ Group.

"I am particularly proud of the commitment shown by the respective teams, which have done remarkable work in order to complete this transaction so quickly. This just shows how much we have in common when it comes to shared values and ambitions," said Eric Syz, Group CEO.

For further information, please contact:
Moreno Volpi Tel.: +41 (0)58 799 16 98
Email: moreno.volpi@syzgroup.com

About SYZ Group

Founded in 1996 in Geneva, Swiss banking group SYZ focuses exclusively on asset management via two complementary pillars: high-end private banking (Banque SYZ) and asset management (SYZ Asset Management). SYZ employs 440 staff and has CHF 29 billion in assets under management (EUR 28 billion). Headquartered in Geneva, the Group also has offices in Zurich, Lugano, Locarno, Milan, Madrid, London, Luxembourg, Brussels, Paris, Dubai, Nassau and Hong Kong. www.syzgroup.com

About Royal Bank of Canada (Suisse) SA

Headquartered in Geneva, Royal Bank of Canada (Suisse) SA provides private banking investment solutions, credit, trust and fiduciary services to high net worth clients globally, with a particular focus on emerging markets, including clients from Latin America, Africa, and the Middle East. It had approximately CHF10.1bn in total assets under management as at October 31, 2014.

Syz benefits as another foreign bank exits Switzerland

Swiss private bank Syz has acquired the Geneva wealth management operations of the Royal Bank of Canada (RBC) as the exodus of foreign banks from Switzerland continues.

Syz announced on Tuesday that it has taken over RBC Switzerland for an undisclosed fee, taking on its CHF10 billion ($10.6 billion) in assets. The takeover is still subject to approval from the Swiss regulatory authorities.

If approved, the deal will nearly double the amount of assets that Syz manages for the wealthy to CHF22 billion. Together with its asset management services, Syz will have some CHF40 billion of assets under management.

"This acquisition will enable Banque Syz to access new markets in Latin America, Africa and the Middle East, where strong entrepreneurship, one of our founding values, is expanding. It also represents a major step forward in terms of the Group's growth strategy,” chief executive Eric Syz said in a statement.

RBC’s withdrawal from Switzerland continues a pattern of foreign-owned entities leaving the Swiss private banking market since the financial crisis.

“The decision to sell RBC Suisse fits with our stated long-term growth strategy to build a focused global wealth management business that serves high net worth and ultra high net worth clients in priority markets from our hubs in North America, the British Isles and Asia,” said George Lewis, group head, RBC Wealth Management and Insurance, in a statement.

The number of foreign-owned banks in Switzerland peaked at 169 in 2009, but has fallen to 122 with the withdrawal of RBC.

The consolidation of the sector has been blamed on several factors. These include the need of some banks to sell off non-core operations after being hit by the financial crisis and fears by others that they could be adversely impacted by the global crusade against tax-avoidance, which has centered on Switzerland.

However, it has not all been one-way traffic for foreign-owned banks in Switzerland. The sector has been boosted recently by arrivals from emerging economies, such as Brazil. The imminent arrival of the China Construction Bank this year has raised hopes that other Chinese banks may soon open Swiss offices, following Switzerland’s recent status as a renminbi trading hub.

swissinfo.ch