Vontobel private bank became the focus of takeover rumors following the death of its honorary president earlier this year. Now, the bank's owner family has re-pledged its attachment to the institute.

Hans Vontobel early this year died at the age of 100. He was the unquestioned patriarch of the namesake bank and represented the owner families as honorary chairman since 1991.

In his lifetime, there was no doubting that the owners would fight for the bank's independence come what may – fending off potentially interested parties such as Raiffeisen cooperative bank.

Medium-Sized Player

After his death however, Vontobel suddenly became the object of rumors, as a possible partner in a merger or even as a takeover candidate.

In Switzerland, Vontobel is a medium-sized player with 144 billion Swiss francs in assets under management. Some observers say that banks of that size face being taken over if they don't manage to boost the volume of assets they manage for customers.

The Zurich-based bank however maintains its determination to remain independent. The owner families and the management led by CEO Zeno Staub made clear as much following the death of their honorary chairman.

Adjustment to Shareholder Pool Contract

The restructuring of the shareholder base communicated today underlines the commitment of the owner family. The earliest termination date for the shareholder pool was extended by eight years through 2026.

The families even earlier had strengthened their influence over the bank by delegating Maja Baumann and Bjoern Wettergren as representatives to the supervisory board.

Takeover Policy

Separate from all these internal steps, the bank has also shown its determination to go it alone by taking an active role in the current wave of consolidation in the finance industry. Vontobel bought the Vescore asset management division from Raiffeisen this year and Twentyfour Asset Management last year.

In private banking, Vontobel opened up doors to the Italian market by acquiring Finter Bank a year ago. Finter Bank is based in the Ticino-region of Switzerland, neighboring Italy.

Uncertainty Eliminated

The strategy to go it alone will not come easy. The bank, which was founded in 1924, has reached the necessary size in wealth management, with 43 billion francs in customer assets, as private banking boss Georg Schubiger recently said. But it will still have to work on broadening its customer base – through acquisitions or organically, according to Schubiger.

The weak markets however also impact Vontobel's business, much like other banks as well. Still, with the pledge by the family owners to stick to their bank for years to come, the company has eliminated any sense of uncertainty surrounding its future for years to come.