An Asia-based bank is pulling out of Geneva –  another blow to the city's ambitions as an international finance center.

Mitsubishi UFJ Wealth Management will close its Geneva offices, according to an entry published in Switzerland's commercial register. Chairman Antoine Kohler's role is now that of liquidator. Swiss newspaper «Le Temps» (in French) first reported the closure.

Mitsubishi UFJ Wealth Management isn't a huge player in Swiss private banking: according to most recently published figures, the bank manages less than 1 billion Swiss francs in assets and employs roughly 20 staff. 

Geneva's Plight

The Japanese bank's retreat is nonetheless a blow for Swiss private banking and in particular for the plight of Geneva in particular – a host of banks including Goldman Sachs have pulled out recently.

Mitsubishi was the largest Japanese bank still present in Geneva. Three still remain in Zurich: Nomura, Mizuho Bank and Mitsubishi UFJ Securities, part of the same wider firm.

Japanese «Swexit»

Japan used to be a formidable presence in Swiss banking: 25 years ago, there were no less than 33 Japanese banks present in Switzerland. Mitsubishi UFJ opened offices in Geneva in 1984, a period of hot economic growth for Japan.

The ongoing withdrawal of the country's banks from Switzerland is linked to the economic stagnation which followed.

Irrevocable Decision

«Our shareholder in Tokyo has reached the irrevocable decision to close the door on our wealth management activities in Geneva,» «Le Temps» quoted a Mitsubishi UFJ employee in the Rhone city.

A spokesman for the bank clarified that the closure follows a strategic rethink in view of economic developments in Japan and Switzerland. «Our branch in Geneva will close at the end of 2018,» he said.

Rising Unemployment

Mitsubishi UFJ Financial Group (MUFG) is Japan's largest financial firm and ranks among the world's biggest banks. It is part of a far-reaching conglomerate which includes the car manufacturer of the same name, and contributes roughly 10 percent of Japan's output with revenue of more than $542 billion. 

For its part, Geneva is grappling with the ongoing erosion of Swiss private banking. Unemployment among the city's 37,000 bankers has risen last year, as Fondation Genève Place Financière reported. Geneva has slipped to the 23rd most significant financial center in the world.

The malaise is perceptible even among the city's largest players: heavyweight Pictet recently reported a profit drop two weeks ago.