Societe Generale's private banking head Jean-Francois Mazaud tells finews.com-TV why he is betting on the U.K. and Switzerland as growth markets over Asia.
Societe Generale's 119 billion euro private bank is renewing its focus on Europe – including Switzerland and the U.K. after pulling out of Asia, the unit's head Jean-François Mazaud tells finews.com-TV. «We do believe that Switzerland is key in any European setup for a bank which wants to be a leader in private banking,» Mazaud says.
Switzerland, where SocGen has branches in Geneva and Zurich, and the U.K. are key hubs for the Parisian bank, which maintains a dense network of 80 city branches in France.
Asia Plans
The bank sold its activities in Asia to Singapore's DBS in 2014, which it deemed «the most suitable choice» of buyers. Does the region still figure in SocGen's plans?
«We do think Asia offers great potential for growth, but the difficulty is to be able to grab the growth,» Mazaud said. Rival private banks have poured resources into Asia for years, but struggled with profitability amid a talent war and ensuing scramble for clients, as well as several high-profile fraud cases in the region.
«Today it is clear that our strategy is to concentrate on Europe where we have a strong base and maybe to continue and help Asian clients whenever they have needs in Europe,» Mazaud told finews.com-TV. SocGen continues to cooperate with DBS on this.
Sensitive Clients
SocGen has instead focused its resources on expanding in Europe, where it bought Kleinwort Benson in the U.K. last year – and recently concluded its integration into SGPB Hambros. It the bank can keep those assets, Hambros will manage £14 billion in assets in the U.K.
Mazaud also said that clients are becoming increasingly prickly over private banking fees.
«Price sensitivity is increasing. That doesn't meant that the relationship isn’t important anymore, but it’s something we see more and more,» a trend that new regulations which favor transparency will foster, Mazaud said.
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